I am closely monitoring the sales for eCommerce websites on www.flippa.com. The latest one that sold was an eCommerce website specializing in Travel Gear for $16,000.
Now there are two reasons for this blog post. One is if you are looking for an exit strategy to get out of the business and make a good return, you can consider selling on Flippa. However more importantly if you are thinking about getting into business, or starting a new website, looking at the sale prices on Flippa can be great indicators of the health of the niche. I mean seriously, wouldnt it be great to invest $6,000 today, then within 12 months you can the $6,000 back and as a New Years gift you bring home $16,000 bonus.
For example, lets say I am looking to start a new niche website. Here is a few reasons why I would consider looking on Flippa, and I will use the Travel Gear website as an example:
1) The SEO campaign on that website would cost no more than $5,000 or less. (Majestic SEO results)
2) The traffic on the website is claimed to be 10,000 unique visitors which is very realistic to get with a $5,000 SEO campaign.
3) They did no PPC while still earning $4,000 in net profits. (http://www.spyfu.com/Domain.aspx?d=-8732385087325082649)
4) According to Compete their traffic dived down after the Panada update. Which means once this website goes on SCE and SEO campaign is launched this problem will be solved and the traffic will sky rocket to 30,000 unique visitors or more from 10,000 they currently get.
5) I can easily take a random product or part number from that website, and Google it using an additional keyword next to the part number such as wholesale or drop ship.
Doing so I was able to find a number of wholesalers selling the product
In addition you can see the brand of the products on their website product page. You can then Google and then call those manufacturers and see if they drop ship or can refer you to a drop shipper.
Finally, this is a niche I would want to start for two reasons.
1) It seems that it can make a decent income. As a result I will get a return on my investment after one year. (Yes break even on the SEO and SCE). But then my plan would be to sell it at the end of the year.
2) At the end of the year I would sell it for $10,000 - $15,000 on Flippa because it has already proven to sell itself (2/14/2012).
If you want to make a $100k bonus by only investing $10k-$25k or
$25k-50k bonus by only investing $5k-$10k, you need to check on Flippa and see what is in demand. What niche website are people willing to pay $10k - $20k for once it is in business.
UPDATE: If you find a niche and do not have $5k-$10k to invest, but would like to do a partnership with me where we go half-half towards that website that recently sold on Flippa and build one just like it, and then sell it at the end of the year, email [email protected] to discuss it.