Ecommerce Profit Margins?

[RockyRambo]

Hey everyone,

Hope you're all well and killing it today!

I'm in the process of starting up an ecom store and came across a few articles today that paint a pretty depressing picture about the profit margins in ecommerce. See below.

The Inconvenient Truth About E-Commerce: It's Largely Unprofitable
Why It's So Hard to Make a Profit in E-Commerce

Just wanted to hear from anyone who currently runs an ecom store or has a lot of ecom experience who could offer their opinion on it.

I see ecom as a business model that satisfys 4/5 of the CENTS requirements (Commandment of Entry i see as being a bit too easy) but other than that seems pretty solid, but the possibility of super low margins has me a bit worried, hopefully someone can prove me wrong.

Thanks

 

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[ay47]

Hey everyone,

Hope you're all well and killing it today!

I'm in the process of starting up an ecom store and came across a few articles today that paint a pretty depressing picture about the profit margins in ecommerce. See below.

The Inconvenient Truth About E-Commerce: It's Largely Unprofitable
Why It's So Hard to Make a Profit in E-Commerce

Just wanted to hear from anyone who currently runs an ecom store or has a lot of ecom experience who could offer their opinion on it.

I see ecom as a business model that satisfys 4/5 of the CENTS requirements (Commandment of Entry i see as being a bit too easy) but other than that seems pretty solid, but the possibility of super low margins has me a bit worried, hopefully someone can prove me wrong.

Thanks

I earn about 30%- 50% net margin on each of my products and just cleared a 45k month. I do no advertising as it's a well known product. Been doing it for more than 6 years now. I'm at my limit for fulfillment so I need to operationalize before exploring how to expand my sales.

So the margin is there. You just gotta find the right market for your products.

 

[Cashflow Queen]

Hey everyone,

Hope you're all well and killing it today!

I'm in the process of starting up an ecom store and came across a few articles today that paint a pretty depressing picture about the profit margins in ecommerce. See below.

The Inconvenient Truth About E-Commerce: It's Largely Unprofitable
Why It's So Hard to Make a Profit in E-Commerce

Just wanted to hear from anyone who currently runs an ecom store or has a lot of ecom experience who could offer their opinion on it.

I see ecom as a business model that satisfys 4/5 of the CENTS requirements (Commandment of Entry i see as being a bit too easy) but other than that seems pretty solid, but the possibility of super low margins has me a bit worried, hopefully someone can prove me wrong.

Thanks

It depends entirely on your business model. There’s so many ways to make money in Ecomm. If you wholesale products the profit can be as low as 5%, leaving little room for error. My private label products get me ~20%. With dropshipping you can do well too, that is lowest risk. My advice for you is to keep going and you absolutely need to pick up skills to distinguish yourself from the thousands of other sellers... maybe you can become good at building funnels and advertising, or you’re great at sourcing. My talent is photography and Copywriting so I find great success in Amazon/private label route. Most people drop out a few months in because it’s difficult.