I am planning to sell my online store, but how is the price determined?

The sale of an online store is not a transaction in which the price is set based solely on the scale of revenue; rather, the sale price is determined by comprehensively considering various factors such as net profit, inventory value, customer data, brand awareness, and growth potential, rather than revenue alone.

In general, the sale price of an online store often uses a method of applying a certain multiple to the annual net profit and then adding inventory assets and added value to that amount.

Net profit refers to the amount actually remaining after deducting the cost of goods, advertising expenses, operating costs, and the like from revenue.

In online store transactions, a multiple of roughly 1.0 to 2.5 times the net profit is often applied depending on the characteristics and stability of the business sector, and in the case of clothing stores, there are cases where a level of approximately 1.2 to 1.8 times is generally discussed.

In addition, inventory assets are also an important factor in the sale of an online store.

However, inventory is generally valued based on cost or wholesale price rather than the retail selling price.

Inventory that is highly likely to sell may be included in the sale price and negotiated, but old inventory is sometimes treated as subject to a discount or separate disposal.

Given the characteristics of an online store, intangible assets also affect the sale price.

For example, the number of followers on Instagram or other social media accounts, the member database, the number of reviews, the number of site visitors, and the repurchase rate are representative factors. Whether a trademark right is registered and the level of brand awareness can also act as factors that raise the sale price.

In the sale negotiation process, the valuation is usually based on performance over roughly the most recent 6 to 12 months, and it is common for the price to be adjusted by a certain percentage from the initially proposed price during negotiations.

Therefore, it is important to prepare in advance materials that can objectively prove revenue, net profit, advertising expenses, inventory status, and the like.

The sale of an online store is a transaction in which the business structure, customer base, and brand value are all transferred together.

In particular, because there are quite a few elements that require legal review, such as the transfer of member data, the transfer of trademark rights, the disposal of inventory, and the transfer of operating accounts, the contract structure must be designed carefully.

Daeryun, the 9th largest law firm in Korea (based on 2025 National Tax Service value-added tax filings), provides legal advisory services across corporate transactions as a whole, including the transfer of online businesses such as the sale of online stores, the transfer of trademark rights, and the review of business transfer agreements.

If you are considering selling your online store, we recommend reviewing the transaction structure and contract terms in advance.