Digital Retail Business Valuation: E-commerce and Marketplaces

Digital retail businesses (e-commerce, marketplaces) have characteristics that impact valuation. Value depends on: revenue (volume, growth, seasonality, diversification), margin (gross, net, per product, trends), products (diversification, quality, private labels, dependence), inventory (value, turnover, obsolescence, management), operations (suppliers, logistics, systems, scalability), and market (competition, positioning, trends). E-commerce with margins above 15%, diversified products, and scalable operations are worth more. Multiples range from 2x to 5x annual revenue. This guide details valuation methods, metrics analysis, inventory evaluation, risks, and how to structure a sale. We include templates and case studies.