The white paper highlights how e-commerce growth has accelerated, with the pandemic compressing a decade of expansion into months. Online retail accounted for nearly 20% of U.S. retail sales in 2020, up from just 7% a decade earlier. Valuations of e-commerce businesses have surged, fueled by investor appetite and the rise of Amazon aggregators that acquire and scale smaller sellers. Methods for valuing businesses include EBITDA, Seller’s Discretionary Earnings (SDE), revenue multiples, and discounted cash flow, with multiples ranging from 0.5x revenue to 8x EBITDA. Timing a sale is critical, as factors like interest rates and taxes may impact future valuations.

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