I avoid these eCommerce stores when looking to buy
With COVID, there was an explosion in eCommerce stores being set up. Now things are getting back to normal; the founders are looking to sell, which means a lot is on the market, making it harder to find the valuable ones.
To help find them, I suggest you avoid stores which have the following.
No previous sales
The whole point of buying an eCommerce business is it has a proven market. This helps increase your chance of success.
Very few sales and lots of stock
Be careful of stores selling where the sale price is mainly the stock you’re buying and has very few sales. This means they’ve developed/imported a product that isn’t selling.
Most dropshipping stores are reselling the same products as 100 other stores. It becomes a race to the bottom as they compete on price, killing your margins. If you can see an opportunity to hold stock to increase margins and the product is unique, consider it.
These are HARD. The competition is enormous and you have to hold stock of lots of different sizes. Unless you REALLY know the fashion industry, I’d stay clear.