What Is a Business Audit of an Ecommerce Store?
When we’re talking about the term “Business Audit”, one generally means conducting a legal, financial, and tax inspection of your business. In e-commerce, the audit also includes analysis of all key business metrics showing how your products perform, website SEO, conversion rates optimization, backlink building, etc.
Before an investor makes a decision whether theyare going to invest money in a particular store or Amazon company, sign legal documents, and close the deal, they will always start with an e-commerce business audit. Online business audit includes the company’s valuation and performing due diligence. The former is needed to analyze business efficiency, profitability, scalability, and growth potential, as well as to estimate the price you are going to offer to the seller.
The latter is required to estimate Amazon account health, risks, analysis of its financials, and position on the market.
When it comes to Amazon FBA business, the major indicators reviewed are related to the Amazon seller account health, profitability, ranking, performance of the ASINs, net profit, inventory turnover levels, PPC spends (ACOS / TACOS), and COGS margins.
On basis of the comprehensive audit results, you take a decision whether you are interested in buying this or that business, and will provide a seller with the offer and price proposal.