Data Shot is a series that gathers and reviews data from The Hatchit Marketplace. You will be able to use it as a guide in your business transaction process, and as a way of identifying useful insights.
Comparing Amazon and Shopify
This Data Shot reviews the prevalence of Amazon FBA sites and Shopify stores on Hatchit, based on 295 web and tech company listings. As background, Shopify provides an e-commerce platform to set up your own online business, whereas Amazon FBA sites provide sellers an opportunity to sell products within the Amazon marketplace. In total, the two platforms make up over 60% of all posts in this category. When comparing site appearance on our platform, Amazon and Shopify are tied at 20% a piece.
Profit Multiples
The number of Shopify and Amazon e-commerce companies on Hatchit is competitive. How does the average selling price relate to its profits? What about KDP and Associates businesses that don’t have physical inventory? How do their profit multiples compare?
Questions to consider with your adviser or business broker:
-Amazon businesses command a 28% selling premium over Shopify businesses. Why?
-How is running an Amazon business different from a Shopify store?
–Is there a bigger market of buyers for Amazon vs. Shopify stores? Does this influence the profit multiple?
-Why do Amazon Associates and affiliate sites have such a high profit multiple? What makes them desirable businesses?
Read our Data Shot article on price multiples for e-commerce businesses or deal multiples and profitability.
Image from Pixabay
