How do I find out if an online store relies on one best-selling product?
Ask for sales by product across a long period and see how much of revenue and profit comes from the top item. Then ask what could remove it: supplier trouble, a competitor copy, a safety notice or a change in demand. Look at what else sells alongside it.
Start with a product-level report from the sales platform, sorted by revenue and then by profit. A top seller can look ordinary by revenue and turn out to produce most of the profit, or the reverse. Ask whether the numbers shift by season, and whether any big orders or promotions inflated the result.
Then ask what keeps the best-seller going. Who makes it, and could the supplier stop or raise costs? Is the design easy to copy? Does the product depend on a single advertising source or one marketplace listing? Ask whether it has been the subject of any recall or safety notice, and what the seller does to monitor that kind of news.
Finally, look at the rest of the catalogue. Do customers who buy the top item return for other things, or do they buy once and leave? Check how many new products launched lately and how they performed. If the store leans heavily on one item, ask your adviser how to protect yourself in the terms, for instance through a handover period or a plan to broaden the range. Ask the seller what they would do if the top item vanished tomorrow. A calm, specific answer, with ideas already tested, tells you more than a promise that something else will sell.
Key takeaways
- Sort sales by product for revenue and for profit.
- Ask who makes the top item and whether anyone can replace them.
- Check whether customers return for other products.
- Review how recent product launches have performed.
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
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentAfter buying a business, what is the next step?
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