Would you buy an already established online shop?

[emilaid]

I've been considering opening up my own online shop, but I would have to start right from scratch as I have no business knowledge whatsoever, so I would be facing a very steep learning curve. I laso have extremely limited finances, so it could take a while to get things going!
While browsing online the other day, I ventured into an online shop for bath and body products and at the top of the home page it said the business was for sale!

When I enquired about the cost I was informed that the sale would cost just £450 :shock: I would be responsible for taking over the cost to the web host and would have to build up the stock, but to me this seems too good to be true!
I would still need to get clued up on book keeping and taxes etc, but all the set up work is already done!

How does that sound to you? Does it sound too good to be true or does it sound like a fair price?

 

[donniej]

I agree, whatever your getting, it sounds too cheap. Why would someone let go a functioning business for so little? Even my tiny, home based operation can make more than that in a month.

What are you getting for your $675? The domain name and rights to their logos and website layout? Are you also getting the business license? Does it come with any debt or back owed taxes?

If you're simply buying the domain name and the images on the website then that sounds OK but I don't know enough about buying a business to give you any advice.

I will say that whatever you do, pay the extra money to put your payment in escrow. That way if they're running a scam you can refuse to release the cash and they get nothing. If they refuse to do escrow then it's a sign, but it would be reasonable for them to insist that you pay the fees for it.

 

[agriffin]

Yeah, I would think that is just for th actual domain/website. Maybe even just the domain.

But...get more details. Ask questions.

 

[emilaid]

I've been corresponding with the current owner via email and he's saying the £450 is for the website, domain name, graphics and all related items including shopping cart and customer data base.

I would be responsible for the yearly fee charged by the web host, the cost of the shopping cart, and the cost of building up the stock.

In short - it's the website itself that's for sale.

I will say that whatever you do, pay the extra money to put your payment in escrow. That way if they're running a scam you can refuse to release the cash and they get nothing. If they refuse to do escrow then it's a sign, but it would be reasonable for them to insist that you pay the fees for it.

This is very good advice - thank you

 

[agriffin]

Hmmm...really that's not bad depending on sales/stats. They should provide you with all visitor stats/sales...etc...etc...

 

[emilaid]

Just to let you all know - I started asking some more questions and guess what?? That was 3 days ago and they've still not replied!!

Lesson learned - if it sounds too good to be true, then it is!! lol

Thanks for the advice anyway!