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Is all profit considered good profit?

by EnterpriseWebsites
5 replies
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Hi everyone!

Please excuse my ignorance for a moment but I have a question for those of you in the business. I am new to eCommerce but have found a unique product in an evergreen niche that is a hot item to have all year long. It's aimed at a target audience that is ready to buy, buy, buy (moms and moms to be) and one that I am familiar with being a mom myself and currently pregnant with another. Either way, the product and materials needed to make them provide me with a total of 55%+ in profit per unit sold. My product is competitively priced and one I am certain will bring in many orders once it catches on. Is that a good enough margin of profit to be sustainable in the long run? If not what sort of margin should I be looking to make?

Any advice and insight is appreciated
#considered #good #profit
  • Profile picture of the author kebertt
    Everyone on the forum has a different preference on the amount of profit they'd like to make per item sold. Some settle for more, some settle for less. You have to consider how large the market is, shipping costs, returns, customer support, hosting fees, marketing budget, and so much more to determine if it's really worth YOUR time. What is the price of your product? Obviously that is a HUGE factor. You could sell an item for $10,000 with 55% profit and you'd make $5500, or sell a $1 item and make 55 cents.

    The real person you should be asking this question to is yourself. Do you think that making X amount of profit handling all of the orders, marketing the business, and managing the customer support is worth it to you? Owning and operating a business isn't easy, but eCommerce certainly opens more doors than a brick-and-mortor.
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  • Profile picture of the author clintmyers
    You should calculate how much time it takes you to make this item and then determine if you make enough per hour to warant your effort. You can always try different price points and see what price sells the most.
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    Clint Myers

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  • Profile picture of the author fireflymedia
    You could try it out on a small scale (e.g. ebay). Sell a few of the products and if it looks like it sells, then you can start scaling it up with a full blown eCommerce website. Also find out how much it would cost you to hire someone to create the product instead of creating it yourself. If you can outsource the product manufacturing process, you will be able to scale by concentrating on marketing and sales.
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  • Profile picture of the author ozmac
    How much time per day would the average eCpmmerce webmaster spend checking orders , marketing the website and paying money for goods sent by the company doing the dropshipping. For a website with 50 products is it commercially viable? Or do you need to have a much bigger website offering?
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  • Profile picture of the author fireflymedia
    The number of products does not make much difference, it all depends on the product. You could be selling just one product and having millions of orders per day (think iPhone) or you could be selling millions of products (think Walmart) with few orders for each. It all depends on the product's market size.
    As far as payments and order management goes: This depends on how your supplier is setup. One of my suppliers for example has batch order upload capabilities so I could upload all daily orders in a batch and pay once. More orders however requires more customer service, this is where the bulk of administrative time goes.
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