How do I check a tile store’s online sales before buying?
Ask the seller to separate online orders from showroom sales, then confirm who owns the website, domain and ad accounts. Look at sample orders, freight and breakage returns, and who the online buyers are, contractors or homeowners. Also ask how big-box websites affect the showroom.
A tile store may say it sells online, and that can mean very different things. It might be a few phone orders that came from the website, or a real channel with its own shipping, returns and advertising. Before you count online sales as part of the business, find out what they are, where they come from and whether they will stay after the sale.
Separate online orders from the showroom
Ask for sales reports that show website orders, marketplace orders and showroom sales on their own lines. If the seller cannot split them, ask how they decide what counts as online. Compare the split against the financial statements so that the same sale is not counted twice, and ask your accountant to help you read the result. A similar check for a thrift store may give you more questions.
Confirm who owns the digital assets
The website, domain name, ad accounts, marketplace accounts and social pages should normally be in the business’s name, not in a former employee’s or a web designer’s. Ask who holds the logins. Put the transfer of each one in the purchase agreement, so that nothing on the list stays behind with the seller.
Look at samples, freight and breakage
Ask how the store ships, who pays freight, how breakage claims are handled, and how many orders come back. Sample orders can be a cost or a sales tool, so ask whether they convert into full orders. Ask also about returns of cut or special-order tile.
Know who the online buyers are
Ask which group the online sales come from, and whether large online retailers sell the same lines for less. That tells you whether the showroom is helped or hurt by the website. If the seller’s customer list is part of the deal, ask your lawyer how it may be used after closing.
Related reading
15 pages on the same subject, grouped by topic.
Buying
- Expert answerHow do I check a thrift store’s online sales before buying?
- Expert answerHow can I tell if an online store for sale is really profitable?
- Expert answerHow does online mattress competition affect buying a mattress store?
- Expert answerHow do I check a pizzeria’s delivery-app sales before buying?
- Expert answerOnline store franchise or independent online store: what should a buyer weigh?
- Expert answerHow do I check a mattress store’s discounting before buying?
- Expert answerHow do I find a furniture store for sale near me?
- Expert answerHow do I look at a toy store’s online and in-store sales mix?
- Expert answerHow do I check where an online store’s website traffic really comes from?
Selling
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat are financial statements?
- 02Business Development Bank of CanadaGovernmentUnderstanding post-merger operational integration
- 03Business 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.