How do I check a thrift store’s online sales before buying?
Ask which marketplace and social accounts the store sells through and whether they can transfer to you, how much staff time goes into listing and photographing items, how shipping and returns work, and whether online sales match the store’s stock records and bank deposits.
Many thrift and resale stores sell some of their stock online, through marketplaces, social media or their own website. That can be a real part of the business or a side project that depends on one employee. Before you buy, learn how the online channel works day to day and what you would actually be taking over.
The accounts and whether they transfer
List every account the store sells through, and who set each one up. Some accounts are tied to a person rather than a business, and each platform’s own terms govern whether they can move. Ask the seller how the transfer would work, what happens to reviews and followers, and whether any account is in an employee’s name. Your lawyer can help you write the transfer into the deal.
The labour behind each listing
Online sales of one-off items take work: sorting, cleaning, photographing, writing descriptions and answering questions. Ask who does it and how many hours it takes. If the owner does most of it, the channel may not carry on without them. Compare that labour with what the online sales bring in, using real records rather than estimates.
Shipping and returns
Ask how orders are packed and sent, what the store pays for shipping and packaging, and how returns, damaged items and disputes are handled. Look at a few real cases. A channel that looks strong on paper can be a drain if returns and refunds eat the margin.
How online sales tie to stock and records
An item can be sold in the store and online at once. Ask how the store tracks what has been listed, how sold items are removed, and whether online payouts match the books and bank deposits. Customer details collected online may carry privacy duties depending on the law that applies, so ask your lawyer how they may be passed to you.
Related reading
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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
- 02Office of the Privacy Commissioner of CanadaGovernmentPIPEDA requirements in brief
- 03Business Development Bank of CanadaGovernmentWhat is inventory
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