Ecommerce Business Valuation

Value ecommerce on true contribution economics, channel durability, inventory and supplier risk.

Normalize contribution

Start with revenue and subtract COGS, fulfillment, shipping, returns, payment costs and required advertising.

Separate inventory

Clarify whether inventory is valued inside or outside the operating-business price.

Study channel quality

Organic, paid, marketplace and repeat-customer revenue have different risk profiles.

Adjust for supplier risk

Concentration, exclusivity, lead times and payment terms affect durability.