How do I check a kitchenware store’s online store and shipping returns?
Ask for order, shipping and returns records and compare what customers paid with what delivery and returns cost the store. Fragile cookware breaks in transit, so look at damage claims and refund patterns. If the owner cannot separate online results from in-store results, you cannot judge whether the website earns its keep.
Start with the orders. Ask for a report of online sales, shipping charges collected, and carrier costs paid. Check whether shipping is a profit, a wash or a loss. Heavy items such as cast iron and glassware can quietly turn a sale into a loss. Keep the questions practical and specific, and write down every answer you are given.
Then look at returns. How many orders come back, and why? Ask about breakage, wrong items and unhappy customers. Read the reviews and any complaint messages. Check who pays return postage and how refunds are recorded. Place a test order yourself, if the seller allows it, and note the packaging, the speed, the tracking and the tone of the messages. You will learn more from one real delivery than from a page of figures.
Ask how stock is managed. Is the online catalogue linked to what is on the shelf, or do online and in-store sales sometimes sell the same item twice? Overselling causes cancellations, and cancellations cost goodwill. Finally, find out who runs the website and who owns the accounts and domain. If a contractor built it, confirm that the transfer is straightforward. Ask your accountant how online income is recorded, and your lawyer what the sale should say about the website and customer lists.
Key takeaways
- Compare shipping charged with shipping paid, order by order.
- Read return and breakage records, not only the sales totals.
- Confirm who owns the website, domain and customer accounts.
Related reading
15 pages on the same subject, grouped by topic.
Buying
- Expert answerHow do I look at a toy store’s online and in-store sales mix?
- Expert answerHow do I check a kitchenware store’s cooking-class and demo programs?
- Expert answerHow do I find out how a print-on-demand store handles shipping delays?
- Expert answerHow do I find a shipping or mailbox store for sale?
- Expert answerWhat happens to the carrier accounts when I buy a shipping store?
- Expert answerWhat should I know about buying a store with an online shop attached?
- Expert answerWhat should I look at in a Shopify store’s theme customizations before I take over?
Due diligence
- Expert answerHow can I tell if a kitchenware store’s breakage and damaged goods are under control?
- Expert answerWhat should I ask about a kitchenware store’s bridal registry customers?
- Expert answerHow can I check how a medical supply store handles returns on sanitary products?
- Expert answerHow do I check how a sporting goods store handles returns and defective gear?
- Expert answerHow do I check an online store’s shipping costs against what customers pay?
- Expert answerWhat should I check about an online store’s return and refund rate?
- Expert answerHow do I check a Shopify store’s customer email segments before buying?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.