We here at Latona’s sincerely hope that everyone is staying safe and healthy. Each of our brokers works out of their homes so it is business as usual for the most part, other than having many more kids in the background on video calls. We feel incredibly fortunate and are staying grounded as we know there is a great deal of suffering happening. We want to do our part by helping to guide buyers and sellers through these times and commit to being transparent and honest about what we are seeing to help everyone plan.
We have noticed a few eCommerce deals fall apart from buyers quickly changing their outlook for the year as they’ve worried about product sourcing (supply side) or sales (demand side) becoming a major issue. But, we’ve also seen a significant uptick in interest in certain sectors we cater to. For example, content sites, membership sites, and lead gen sites have a great deal of demand at the moment. If you have a site in one of those categories and would consider selling, please contact us.
Going back to eCommerce businesses, it largely depends on how the product is sourced and shipped but of course, more than anything, what the product actually is. We have closed a number of deals in the last three weeks. They are still selling but sourcing and demand are important issues. We’ve also noticed that buyers can be very understanding given the circumstances. If there is a dip in sales in March, it is certainly easy to explain and reasonable people can look past it so long as the future paints a picture with no supply-side or demand-side problems.
One $650,000 listing of a kid’s toy site recently came out of exclusivity as the current environment has affected the previous buyer’s ability to close. Parents will still buy toys for their kids. The seller has reduced price to encourage a quick acquisition moving into Q2. Revenue is generated by selling products from large vendors such as Disney, Mattel, and Hasbro, revenue and profits have remained healthy.
Stay safe, stay inside and stay healthy!