10 Questions to Ask Before Buying an Online Business

Buying an established online business can be a smart path to entrepreneurship, but it requires careful due diligence. Whether you're considering a dropshipping store, Amazon FBA business, affiliate site, or digital agency, asking the right questions upfront can save you from costly mistakes and help you identify genuine opportunities.

Here are the 10 essential questions every buyer should ask before making an offer:

What Are the Verified Revenue and Profit Figures?

Always verify revenue with bank statements, payment processor records, and tax returns—never rely on screenshots or seller claims alone.

Don't rely on screenshots or seller claims alone. Request access to:

• Bank statements showing actual deposits
• Payment processor records (Stripe, PayPal, Shopify Payments)
• Tax returns or P&L statements prepared by an accountant
• Analytics data showing traffic-to-revenue correlation

Look for consistent revenue patterns over at least 12-24 months. Be wary of sudden spikes that may not be sustainable.

What's Included in the Sale?

Get a complete asset list in writing to avoid post-sale disputes about what transfers with the business.

Clarify exactly what assets transfer with the business:

• Domain name(s) and hosting accounts
• Social media accounts and follower bases
• Email lists and customer databases
• Supplier relationships and contracts
• Inventory (physical or digital)
• Intellectual property, trademarks, and brand assets
• Standard operating procedures and training materials

Get everything in writing to avoid post-sale disputes.

Why Is the Owner Selling?

Understanding the seller's true motivation provides crucial context and helps identify potential red flags before you invest.

Understanding the seller's motivation provides crucial context. Common legitimate reasons include:

• Moving on to other ventures
• Retirement or lifestyle changes
• Lack of time or interest in the niche
• Portfolio consolidation

Red flags include vague answers, declining metrics, or upcoming platform changes that could hurt the business.

What Are the Traffic Sources and How Stable Are They?

Diversified traffic sources are safer than single-channel dependence—verify rankings, ad performance, and customer acquisition sustainability.

Examine where customers come from:

• Organic search (Google rankings for key terms)
• Paid advertising (Facebook, Google Ads, TikTok)
• Social media (organic vs. paid)
• Email marketing
• Direct traffic and repeat customers

Diversified traffic is safer than reliance on a single channel. If the business depends heavily on paid ads, can you maintain the same ROI? If it's SEO-driven, check for any algorithm vulnerability or recent ranking changes.

What Are the Operating Expenses and Time Requirements?

Calculate true profitability by understanding all costs and time investments—hidden expenses can dramatically impact your actual returns.

Calculate the true profitability by understanding all costs:

• Cost of goods sold (COGS)
• Advertising and marketing spend
• Software subscriptions and tools
• Payment processing fees
• Fulfillment and shipping costs
• Virtual assistants or contractors

Also ask how many hours per week the current owner invests and what tasks can be automated or delegated.

Who Are the Suppliers and How Reliable Are They?

Supplier relationships are critical for product businesses—verify reliability, backup options, and willingness to work with new ownership.

For product-based businesses, supplier relationships are critical:

• How long has the relationship existed?
• Are there backup suppliers?
• What are the payment terms and minimum order quantities?
• Will the supplier work with a new owner?
• Are there any exclusivity agreements?

For dropshipping or print-on-demand, verify that supplier integrations will transfer smoothly.

What Is the Competitive Landscape?

Research market position, competitive advantages, and niche trends using tools like SEMrush or Ahrefs to validate seller claims.

Research the market position:

• Who are the main competitors?
• What's the business's unique value proposition?
• Are there barriers to entry that protect market share?
• Is the niche growing, stable, or declining?
• Are there seasonal fluctuations to consider?

Use tools like SEMrush, Ahrefs, or SimilarWeb to validate competitive claims.

Are There Any Legal or Compliance Issues?

Protect yourself from inherited liabilities by verifying licenses, tax compliance, pending disputes, and data protection regulations.

Protect yourself from inherited liabilities:

• Are all business licenses and permits current?
• Is the business compliant with tax obligations?
• Are there any pending lawsuits or disputes?
• Does the business comply with data protection regulations (GDPR, CCPA)?
• Are product claims and marketing materials legally sound?
• Are trademarks properly registered and protected?

Consider having a lawyer review the purchase agreement and asset transfer documents.

What Growth Opportunities Exist?

The best acquisitions have clear, untapped growth potential that the current owner hasn't pursued—look for expansion opportunities.

Look for untapped potential that could increase value:

• Underutilized marketing channels
• Product line expansion opportunities
• Geographic markets not yet targeted
• Email list monetization potential
• Conversion rate optimization opportunities
• Upsell and cross-sell strategies

The best acquisitions have clear paths to growth that the current owner hasn't pursued.

What Support and Training Will the Seller Provide?

Negotiate 30-90 days of seller support, documented SOPs, and supplier introductions to ensure a smooth transition and business continuity.

A smooth transition is essential for success:

• How many hours of training are included?
• Will the seller be available for questions during the transition?
• Are there documented processes and SOPs?
• Will the seller introduce you to key suppliers and partners?
• Is there a non-compete agreement to prevent the seller from starting a competing business?

Negotiate transition support terms before finalizing the deal—typically 30-90 days of seller availability is standard.

Final Thoughts

Thorough due diligence protects your investment—take your time, verify everything independently, and work with professionals who specialize in online business acquisitions.

Buying an online business is a significant investment that requires thorough due diligence. These 10 questions form the foundation of your research, but don't stop there. Take your time, verify everything independently, and consider working with professionals like accountants, lawyers, and business brokers who specialize in online business acquisitions.

The right online business can provide immediate cash flow, proven systems, and a head start on your entrepreneurial journey—but only if you ask the right questions and make an informed decision.

Ready to explore established online businesses with verified revenue and transfer-ready assets? Browse our curated marketplace of pre-vetted opportunities across multiple niches and investment levels.