Selling an Ecommerce Business in Australia
Ecommerce businesses sell for 2.5× to 4× EBITDA, most often between $200,000 and $1.5 million, and move quickly at around 60 to 120 days. What separates the top of that range from the bottom is almost always concentration: how much of the business depends on one platform, one supplier or one traffic source.
If you run an online store, marketplace business or direct to consumer brand, this page covers what yours is likely worth, what buyers examine, and what tends to move the number up or down.
- Typical multiple
- 2.5× - 4×
- Typical sale price
- $200k–$1.5m
- Time to sell
- 60–120 days
- Buyer demand
- High
What ecommerce businesses sell for
The headline range is 2.5× - 4× EBITDA, but where you land inside it depends heavily on the size of the business. Larger businesses attract higher multiples, because buyers see less risk and more management depth.
| Annual EBITDA | Typical multiple |
|---|---|
| Under $100k | 0.8× – 1.8× |
| $100k – $250k | 1.2× – 2.4× |
| $250k – $500k | 1.6× – 3× |
| $500k – $1M | 2.2× – 4× |
| $1M – $2.5M | 3× – 5× |
| $2.5M – $5M | 3.8× – 6.5× |
| $5M – $10M | 5× – 8× |
| $10M+ | 6× – 10× |
Ecommerce is usually priced on proprietor earnings rather than a straight EBITDA figure, which means the add-backs matter. Owner wages, one-off costs and personal expenses run through the business all get examined line by line, and a buyer will only accept the ones they can substantiate.
How long it takes to sell
Sixty to one hundred and twenty days is among the fastest of any sector, because the business has no premises, no fleet and usually no staff to speak of. What does take time is verification. Buyers want direct access to analytics, ad accounts and merchant dashboards rather than exported screenshots, and arranging that properly while keeping the sale confidential is the main scheduling constraint.
The five things buyers pay for
Revenue quality & consistency
Buyers want consistency more than growth. Two or three years of steady trading with visible seasonality is easier to price than a single breakout year, because a spike raises the question of whether it was a product cycle, a platform algorithm or a one-off promotion that will not repeat.
Gross margin trends
The direction of your gross margin matters more than its level. Margin that has held or improved while you scaled suggests genuine pricing power. Margin eroding as revenue grows suggests you are buying growth through discounting or rising freight and input costs, and buyers price that trajectory forward rather than assuming it stops.
Customer acquisition cost
Customer acquisition cost against lifetime value is the core economic question. Buyers examine the split between paid and organic traffic, because a business dependent on paid acquisition is only as profitable as its current ad performance. Organic search, direct traffic and an owned email list are worth materially more than the same revenue bought through advertising.
Platform diversification
Platform concentration is the single largest risk buyers price for in this sector. A business earning most of its revenue through one marketplace or one social channel is exposed to policy and algorithm changes it has no control over. Revenue spread across your own store, marketplaces and multiple traffic sources attracts a meaningfully higher multiple.
Repeat purchase & LTV rates
Repeat purchase rate tells a buyer whether you have customers or transactions. A high proportion of returning buyers, particularly with an engaged email or SMS list, means future revenue does not have to be bought again. Consumables and replenishable products naturally do better here than one-time purchases.
Accounts, suppliers and brand assets
Digital assets transfer as an itemised list rather than automatically, and the list is longer than most sellers expect: domain, store platform, marketplace seller accounts, advertising accounts, analytics, email platform, social handles and any apps or subscriptions the store depends on. Marketplace seller accounts in particular often cannot be transferred freely under platform policy, which is one reason ecommerce deals are sometimes structured as a share sale so the account stays with the entity.
Supplier arrangements are frequently informal, and that becomes a problem at due diligence. Where pricing, exclusivity or lead times rest on a relationship rather than an agreement, a buyer has no assurance the terms continue after you leave. Getting key supplier terms documented before going to market is one of the highest return preparation steps in this sector.
Registered trade marks, brand registry enrolments and product listings with accumulated reviews carry real value and need to be identified explicitly in the contract. Inventory is normally handled separately from the sale price and counted at settlement, with aged or unsellable stock discounted or excluded.
What buyers will ask for
- Revenue split by channel. How much comes from your own store against each marketplace, and how that mix has shifted over time.
- Traffic sources and acquisition cost. Paid against organic, current cost per acquisition, and whether ad performance has been deteriorating.
- Gross margin trend and add-backs. Three years of margin direction, plus every add-back claimed in the proprietor earnings figure with evidence for each.
- Supplier terms and lead times. Whether arrangements are documented, how concentrated your sourcing is, and what happens to pricing under new ownership.
- Inventory ageing and returns rate. Stock turn, what is sitting unsold, and your returns and refunds history by product.
Common questions
- Can I transfer my marketplace seller account to a buyer?
- Often not directly, because platform policies restrict it. This is one of the main reasons ecommerce deals are structured as share sales, where the entity holding the account changes hands rather than the account itself. It should be resolved before terms are agreed.
- Is my stock included in the sale price?
- Usually not. Inventory is normally valued and paid for separately at settlement, with aged or unsellable stock discounted or excluded. Agreeing the basis for that valuation early avoids the most common late dispute in these deals.
- Why do buyers use proprietor earnings rather than EBITDA?
- Owner operated online businesses commonly run personal costs through the accounts and pay the owner irregularly. Proprietor earnings normalises for that, but every add-back has to be substantiated. Unsupported add-backs are simply removed, which lowers the price.
- Does it matter that most of my traffic is paid?
- Yes. Paid traffic can be bought by anyone, so it contributes less to the multiple than organic search, direct traffic or an owned email list. Businesses that have built durable acquisition channels sell for more at the same profit.
Other industry guides
- Café or Restaurant in Australia0.8× - 1.5×
- Trades Business in Australia2× - 4.5×
- Retail Business in Australia1× - 2×
- Professional Services Firm in Australia2×–4×
- Allied Health Practice in Australia3×–5×
- Manufacturing Business in Australia2× - 4×
- Childcare Centre in Australia3× - 5×
- Transport or Logistics Business in Australia2.5× - 3.5×
- Hair or Beauty Salon in Australia1.5× - 2.5×
Before you sell
- Is My Business Ready to Sell?The ten things buyers check before they make an offer, and what a strong answer looks like.
- How Long Does It Take to Sell a Business?Time to sell by industry, the preparation timeline before listing, and what causes delays.
- How to Sell a Business ConfidentiallyWhat actually leaks, how a confidential sale is controlled, and when to tell your team.
Last updated September 2026