E-Commerce Due Diligence Checklist

searcher profile

July 02, 2023

by a searcher from University of Maryland at College Park in New York, NY, USA

Does anyone have a comprehensive due diligence checklist for an e-commerce brand?

Specifically, the brand has a high aov ($1,500), sells predominantly through its website via Shopify (i.e. not amazon), ~$5M in revenue, some paid marketing, social, etc. Uses a single supplier based in China.

Looking for due diligence items like marketing spend by channel, CAC, LTV, etc., rather than items related to more traditional physical businesses.

Also, happy to share my list with anyone interested once complete. It's a google sheet format with several formulas, picklists, etc. for usability. DM for access.

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commentor profile
Reply by a professional
in Lucknow, Uttar Pradesh, India
I would look for

Traffic volume Traffic sources Sales data Returns Trends Financial statements Competition Supplier invoices
Inventory Employment or contractor agreements Licenses, permits, and intellectual property Standard operating procedures

FE International has a great article on this topic: https://feinternational.com/blog/e-commerce-business-due-diligence-checklist/
commentor profile
Reply by a professional
from Northwestern University in Chicago, IL, USA
I have a financial model we can walk through that should touch on all the KPI’s. I’d be interested in.

Ran a 10 million commerce company full-time as the CEO and CFO.

We also have many clients that are in the e-commerce game.
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