How much income can bring an online store to the owner? If we consider the market for Internet sales in Russia and Ukraine we can confidently say that online trading is gaining momentum. Online shopping people have started about 10-15 years ago. This was facilitated by the rapid development of Internet sites and a growing number of Internet users.
Already, many appreciated the opportunity to purchase goods and services over the Internet for simplicity, convenience, price, and many young people have even become fans of online shopping. E-shop can be assessed by the same criteria as any other business and income source. If we compare the usual small offline shop or department in a shopping center and online store most business processes are similar. The main difference – is the placement of goods sold not in stores but online – a virtual showcase of your online store.
From my experience I can give the figures for profitability. To do this, I present the passport project, which really worked and makes a profit:
Sale goods – car parts and automotive products.
Sales Territory – Australia, across the country.
The main source of customers – online shop (website).
Average attendance – 500 people / day.
Average sales volume – 15 thousand dollars / month.
Return on sales, 15-20%.
Number of providers – about 15.
Staff in the state – 3 people.
This is a small online store with three employees in the state. As can be seen from the data, the number of visitors was small. By increasing the number of visitors can be increased the yield.
In the vastness of Internet the new online stores constantly (and probably every day) run. Competition increases, the budget for promotion also increases. But it is clearly marked with the industry leaders – an online store has attendance of over 10 thousand / day and the staff of 100 and more employees. Accordingly, you have sales of large sum, more solid earnings and number in the millions.
The main factors that influence the level of profitability online store:
The range and level of prices. A small assortment of goods does not give a good choice. Price is better to keep the average, if you sell common commodities. If the product is exclusive and elite level – you can safely put the price slightly lower than in the ordinary boutiques.
Traffic to the site. It is important to the number of visitors who are looking for exactly your product or service. Accidental visitors will only spoil the statistics.
Design and usability (ease). Here the rule is simple – a nice design, easy navigation through the site.
Store image. The more shoppers were satisfied with referring to you – the better it is for you. If the client is not happy – he will always speak negatively about working with you and this may affect the overall level of sales.
Margin. Margin less than 10% of Internet commerce will work on the brink of survival. Optimal margin is 15% -25%.
Costs. The main items of expenditure are web site promotion, s / n employees, renting space. To get started you simply need the space for offices and mini-warehouse.
Any site deserves to get internet marketing. Discover how lots of site owners are receiving traffic from search engines today – this is part of Internet marketing strategy for successful Internet marketers shown on this free traffic site.
P.S. And when you have good traffic – then “get website traffic” questions become very easy.
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