What should I know about buying a store with an online shop attached?
Treat the online shop as its own business that shares a roof. Confirm who owns the domain, the store accounts and the customer list, and whether the online sales are separate in the books. Ask how stock and staff time are shared between the shelves and the website.
Start with ownership. Websites, domains, marketplace accounts, social pages and payment accounts are often registered in a person’s name, sometimes a staff member’s or a former web designer’s. Ask for proof of who holds each login and how they can be moved to you, and ask for the transfer to be a condition of closing.
Then separate the numbers. Ask for sales, returns, shipping costs, advertising spend and fees for the online channel on their own lines. If the shop shares inventory with the store, find out how that is tracked and who packs orders. A site that quietly depends on the seller’s evenings may not run the same under you.
Finally, look at how customers reach it. Does traffic come from search, from paid ads, or from the store’s regulars? Paid traffic stops when spending stops. Ask what the seller would do differently, and whether the customer list may move to a new owner. Your lawyer can advise on that. Ask for a walk-through of a real order, from click to doorstep, so you see every step that someone has to do.
Key takeaways
- Confirm who owns the domain, accounts and logins before anything else.
- Ask for online sales, costs and returns reported separately.
- Find out how stock and packing are shared with the store.
- Check where customers come from, and what stops if advertising stops.
Related reading
15 pages on the same subject, grouped by topic.
Buying
- GuideHow do I buy a convenience or grocery store that sells alcohol in Ontario?
- GuideBuying a pet supply store in Canada
- GuideBuying a cannabis retail store in Canada
- GuideBuying a convenience store in Canada
- GuideBuying a grocery store in Canada
- Expert answerHow does buying a sushi counter inside a grocery store work?
- Expert answerHow do I check a florist’s online order relay network and its fees?
- Expert answerHow do I check a bookstore’s online sales and its shipping setup?
Due diligence
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 CanadaGovernmentMajor pitfalls to avoid when negotiating a purchase agreement
- 03Business Development Bank of CanadaGovernmentWhat are financial statements?
- 04Business Development Bank of CanadaGovernmentUnderstanding post-merger operational integration
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