FREE Shopify Store Value Calculator
Are you thinking about selling your Shopify store? In that case, it is essential to know its value. Business owners can simply put numbers in a free store value calculator and estimate the value within a few minutes. All you need to do is calculate the average monthly gross revenue and average monthly net profit. Now enter the value into the respective box. And you are done.
What is Shopify store value?
A store value is an estimation of how much your Shopify store is worth. To find the value of your store, you need to collect and analyze some data. This involves factors like business assets, liabilities, and debts. There are different ways to calculate the store value. But the easiest way is to use a free Shopify store calculator to find out the result instantly.
How do you calculate Shopify store value?
There are plenty of ways you can apply to measure your Shopify store’s worth.
The first method you can use is to estimate the net worth of your store. This is by subtracting your debts from your total asset value. It includes factors like your store inventory, property, equipment and any other expenses related to your store.
The net worth = Total assets – debts/ loans
There are other ways as well to value your online shop. That is by taking the monthly net profit and multiplying it by 12x – 32x. The multiplier depends on many factors such as whether your dropshipping or not.
Factors to consider regarding Shopify store value
Traffic diversity
It is one of the most crucial factors that you need to understand. First, you must determine the traffic source of your online store. In the case of any Shopify store, sources are mainly from a single source, such as organic or paid channels. Or it can be from SEO, search engines, email marketing, and social media platforms.
If you manage to get traffic from multiple sources, it will help you increase your store’s value.
Revenue diversity
Just like the traffic, it is vital to determine the revenue sources. Like, what business model or monetization type dominates the revenue generation? You can have multiple sales channels, like dropshipping or the print on demand.
By using multiple revenue sources, you can improve the valuation of your online store. It will be good if you use multiple revenue streams for your online store. There will be less impact from unexpected events on one of these streams.
Age
This thing is known by all of us. An old business can generate more store value than a new one. Although it does not mean you can’t sell your new business with good profits. It is likely that an older business has standard operating procedures and has managed to keep up with alterations in industry standards. And if you have already built a reputation in your business niche, it just can’t fade away within a few months.
Brand
Branding your products or service is a tricky thing you need to master. Although, we can simplify it for you. A big brand means a business or company has already managed to build its impression among its customers by solving their issues and creating a positive experience. This leads to building a positive image of the company by generating positive feedback or responses from their clients.
Strong branding can most definitely increase the value of your store.
Average monthly net profit
The monthly profit of your store is itself a valuation factor, but a higher profit for a long time can influence your store value. A higher profit margin for your online store can come from factors like good sales volume, low inventory and labour costs, and streamlined operation.
And More!
There are some other factors as well that can also boost your store value. Here we have discussed just the basics. So, let’s talk about them and try to understand how they can influence store value.
FAQs
How much does a Shopify store sell for?
It is possible to sell your Shopify online stores for six figures. But you should know it can change depending on how much your store earns. To be valued at six figures on Shopify, a store must have a 12-month net profit of at least $3,500. This estimation determines if you sell your Shopify store at this price, it will be profitable for you.
