# Channel concentration

A term used when buying e-commerce.

How much of the sales run through a single platform instead of spreading across several.

It is the central risk in valuing an online brand. A business that is ninety percent one marketplace lives by that platform's account decisions and fee changes, and a suspension nobody can appeal is a revenue line at zero with the inventory already bought. Ask for revenue by channel over three years, and for the account health history. Spread lifts the multiple because it is the defense that survives a suspension nobody can appeal.

Part of: Buying an E-Commerce Business (https://searchspheresource.com/guides/buying-an-ecommerce-business)

Source: https://searchspheresource.com/guides/buying-an-ecommerce-business/terms/channel-concentration
Not dated: The same editorial definitions as the glossary, inside a trade.

Site index for machines: https://searchspheresource.com/llms.txt