Dropshipping Due Diligence
Receive a 23-point analysis on your dropshipping business acquisition. Our goal is to minimize risks so you get the best deal. View a sample report.
Firms We’ve Helped
Our Due Diligence Service Eliminates Risks
Our team has performed due diligence on over 1,000 dropshipping, e-commerce, Shopify, and Amazon FBA businesses. We’ve scaled several businesses to over 7 figures.
We know how to perform due diligence. We find the pros and cons of each acquisition to save you from making a mistake.
What’s Covered?
We have meticulously conducted a thorough 23-point analysis of your prospective dropshipping business acquisition, customized to provide you with the confidence necessary for decision-making. Our approach is centered around the fundamental principles of dropshipping, addressing each core component essential for the successful operation of such a business.
The report breaks down into the following sections:
Market
Most dropshipping brands center around a particular niche. We’ve scrutinized eCommerce businesses for sale across various categories, gaining insights into the specifics of managing each category and its market nuances.
Overall market size and trends
Positioning in the market
Main competitors
Product
Effective marketing alone cannot salvage a poor product. Success is more likely when your product effectively addresses a specific pain point. We consider:
Unit margins
USPs (unique selling points)
Suppliers
Operations
While people are essential to any company, robust systems enable scalability and resilience, ensuring operations continue smoothly even when staff members depart. Our analysis covers:
What OMS you’re using, and it’s data
Registered trademarks
Business model
Marketing
Your customers are indifferent to the channels through which you sell—be it SEO, PPC, email, or others. What matters to them is the convenience of purchasing your products wherever they choose to shop. We analyze and contextualize:
Revenue distribution
Sales channel performance
Grow opportunities
Fulfillment
To ensure customer satisfaction, it’s crucial to keep them informed throughout the shipping process and provide speedy delivery. We examine:
3PL information
Couriers and rates
Returns rate and reasons
Valuation
Valuation of dropshipping businesses relies on a multiple of Seller’s Discretionary Earnings (SDE). Determining this multiple is pivotal and depends on various factors such as niche, market trends, metrics, and more. We look for:
Evaluate asking price and multiple against market trends
Expert suggestions on what the business is worth
Finance
Having operated a dropshipping business, you understand the challenge of managing cash flow, which is integral to success. We analyze:
Stock value
P&L (Profit & Loss)
Verifying revenue
Team
Progressing swiftly alone is possible, but enduring progress requires a cohesive team effort to achieve your goals. We analyze:
Team members and roles
Notice periods & flight risks
Understaffing or overstaffing issues
The Due Diligence Team
Mushfiq Sarker, Lead Analyst
Mushfiq is the Lead Analyst overseeing due diligence reviews. He has been buying, growing, and selling online websites since 2008. He has sold over 200+ websites with multiple six-figure exits. He currently manages multiple 7-figure Shopify and e-commerce businesses.
He has performed due diligence on well over 1,000 online businesses to date. He has kept up-to-date with the current industry as an operator running his own media company.
David Holmes, Amazon FBA Advisor
David has acquired, grown, and successfully exited 2 Amazon-based businesses. He now consults for multiple 7-figure Amazon FBA brands.
David acquired a declining Amazon FBA business in January 2020. By revitalizing the listing, the Amazon ad strategy, and the supply chain, he grew revenue 500% in the next 12 months while reducing the cost of goods sold. He ultimately sold that brand in September 2022 to a private buyer.
David has deep expertise in Amazon FBA’s ecosystem.
Elliott Davidson, Ecommerce Advisor
Elliott is an award-winning eCommerce consultant and entrepreneur. He is the owner and operator of several 7-figure online stores and the founder of his own eCommerce digital marketing agency, Contrast.
With over 8 years of experience in digital marketing both in-house and agency-side, he’s helped deliver successful website migrations and implement scalable PPC sales funnels for local and global eCommerce businesses, all the way to generating multi-millions in organic revenue.
One of his main growth strategies is to leverage M&A. Over the last several years he has used this method and bought several businesses from IP, stock, and LTD purchases.
Testimonials
I engaged WebAcquisition on 3 pieces of work for a business acquisition: marketing and technical diligence, financial diligence, and an opportunity identification and evaluation report (what they call “Easy Wins”). I was very pleased with all three, with the two diligence pieces giving me good comfort, and the Easy Wins report opening my aperture for what was possible after acquisition.
Gold Creek Pond
I hired Mushfiq and his team for their concierge Deal Sourcing service. Over a 8 month period, the team worked to source deals both on and off-market that met my investment criteria. We found a stable $2M eCommerce business that we closed on. They assisted in structuring the deal where we put down 60% and the rest seller financed. They also performed due diligence to ensure it was a stable business. Overall, the service is highly recommended!
Twenty Hours
Mushfiq and team did an outstanding job on their due diligence, identifying a critical element in the business that we were looking at that caused us to back away from the deal. Really appreciate the attention to detail and thoroughness of their evaluation of our potential acquisition target and I definitely plan to use them again.
I purchased a package of five “site reviews” by Mushfiq. I am super impressed with the feedback Mushfiq gives and the value delivered. Even though I have not moved forward purchasing any of the sites I’ve asked Mushfiq to review, I wouldn’t think of buying an online business without getting his take first. I’ve learned a ton from him on each review delivered.
Mushfiq and the team are experts and are always great to work with. Not only do they have a very quick turnaround on Due Diligence reports themselves (I’ve used them twice now for two successful purchases), Mushfiq is always available for follow-up questions. He is also extremely quick to respond. Would recommend.
Paragraph Capital
The WebAcquisition team helped us perform due diligence reviews on multiple Amazon FBA businesses. We received an actionable report with many insights. I highly recommend Mushfiq and his team!
Venturr.io
“Mushfiq & his team did a great job with the full due diligence report… Not only did he look at the financials but did a full analysis on domain history, website history, market analysis, traffic, SEO, backlink, projections, valuation & deal structure and more. This is what I needed to make an informed decision and to acquire the business… I would definitely hire him again to do my M&A due diligence.”
Jon Kong
WebAcquisitions was fast, responsive, and most competitively priced. Turning around my report in only 5 days, they are one of the few firms that do a thorough SEO assessment as well as validating revenues. Mushfiq’s experience allowed us to catch things that weren’t on our radar.
Jasmine Grainger
I hired the WebAcquistion team to perform due diligence on a few content, Shopify, and newsletter businesses. Their deep expertise in operating such businesses definitely shows in the reports. Recommended!
Indexsy
We hired Mushfiq’s team to perform due diligence on various content sites. Their reports were extremely thorough and pointed out insights that helped us make an acquisition decision.
Scott Oldford
The Wisdom Group
WebAcquisition team performed a due diligence review of a content website we wanted to acquire from Empire Flipper’s brokerage. They reviewed everything related to the website and provided insights that have helped us make a decision. Recommended!
My consultation with WebAcquisition was very valuable and insightful. I was seeking feedback on potentially merging two sites into one and the conversation helped determine the best path forward, but also covered some other things like better monetization techniques. Extremely knowledgeable and experienced
Bryan May
I was very happy with the [Amazon KDP] report as it opened my eyes and without question prevented me from making a big mistake.
The report covers everything and makes your decision a lot easier, the money is well spent.
I highly recommend WebAcquisition.
Henrik H.
The DD report was very informative, detailed, and expertly put together.
It was a valuable tool to help inform my decision on the [YouTube channel] business I was looking to acquire. It was money well spent considering the cost of the business I was looking to buy. I highly recommend their services.
Brian Alper
It’s always a good idea to have another set of eyes review a deal, regardless of size. I’ve worked with Mushfiq, David and their team a few times now on pre-deal due diligence services. It is clear that they are very knowledgeable about the ecommerce space, highlighting the pros and cons of each deal and providing a thorough review of potential acquisitions, including any potential red flags. I would not hesitate to hire them again.
Andrew Valen
Mushfiq has done a few due diligence reports for me and they were all excellent.
He is very thorough in his analysis and review of the business and industry. He found some red flags that I never would have found and likely saved me from some bad acquisitions. I also did a consulting call with him to help with my acquisition strategy. The call was great and he helped me refine my strategy and focus. I would definitely recommend Mushfiq.
Andy Edler
Pricing & Next Steps
Due Diligence Report: $2,900+
Our advisors will perform a 23-point analysis of your potential dropshipping business acquisition. You will receive an in-depth PDF report. View a sample report.
Final pricing is dependent on the number of SKUs, brands, and complexity.
We deliver the results within 7 business days.
Fill out the contact form with basic details of the business you would like to acquire. We will follow up in less than 24 hours if we can perform the due diligence review.
Other Services
Are you looking to acquire a different type of business? We have due diligence services for the following:
