Ecommerce Management Software

How Profitable Is An Ecommerce Management Software? (Updated for 2024)

Pat Walls

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Updated: September 19th, 2024

How Profitable Is An Ecommerce Management Software? (Updated for 2024)

So you want to start an ecommerce management software?

And the first question that came to your mind was, “well, are ecommerce management softwares actually profitable?”

With a market size of $13.3B - there’s plenty of business to go around.

Especially considering:

You could start a ecommerce management software with as low as $1
Based on our data, ecommerce management softwares generate an average of $7.23M per year

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a ecommerce management software.

Let’s dive in!

Is an ecommerce management software profitable?

Yes, an ecommerce management software is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $7.23M per year with an estimated gross margin of 89%, you could expect to recover your investment within 8 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your ecommerce management software.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your ecommerce management software is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is an ecommerce management software worth it?

If you’re wondering if a ecommerce management software is worth it, the answer is a big YES. With ecommerce management softwares, you have the potential to earn $7.23M per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $13.3B, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a ecommerce management software to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful ecommerce management softwares case studies.

Examples Of Profitable Ecommerce Management Softwares

Here are a few examples of profitable ecommerce management softwares, and a few more details about them:

1. Prolific Zone ($1.66M/year)

Quin Amorim, the founder of Prolific Zone, came up with the idea for his eCommerce agency after successfully selling products online for over 25 years. He realized his passion for creating and launching products and brands online and decided to help others do the same. With a team of 18 people and a customer retention rate of over 80%, Prolific Zone generates an impressive average of $140K per month without spending a single dollar on advertising.

Is it profitable? Yes
How much money it makes: $1.66M/year
How much did it cost to start: $3K

From Selling On eBay To Starting A $1.6M/Year eCommerce Agency

Prolific Zone is an eCommerce agency founded by Quin Amorim that has experienced significant growth, with a team of 18 people, a customer retention rate of over 80%, and generating an average of $140K per month helping brands sell their products internationally through Amazon and Walmart.

Read this case study

Read by 3,974 founders

2. Bagisto ($600K/year)

Saurav Pathak, the Chief Product Officer of Bagisto, came up with the idea for the open-source e-commerce platform after realizing there was a huge gap between demand and supply for platform-driven e-commerce solutions. With the goal of making it simple for developers to create their own online stores, Bagisto has generated over $1 million in revenue and has a user base of 200,000.

Is it profitable? Yes
How much money it makes: $600K/year
How much did it cost to start: $10K

How We Built A MillIon Dollar Ecommerce Platform [India]

Open-source e-commerce platform Bagisto has generated over $1 million in revenue in the past four years, with $350,000 annual recurring revenue for the past two years, has over 70,000 downloads, 5,000 Github stars, 5,000 community members globally, and over 150 contributors enhancing its features.

Read this case study

Read by 5,851 founders

3. ShipHero ($28.8M/year)

Nicholas Daniel-Richards and Aaron Rubin founded ShipHero in 2013 after experiencing frustrations with legacy warehousing software. They saw a market for a more accessible solution that could work on iPhones or tablets, offering features like order management and integration with e-commerce channels. Since then, ShipHero has grown to bootstrapped revenues of $30 million annually, processing over $5 billion of e-commerce gross merchandise volume annually.

Is it profitable? Yes
How much money it makes: $28.8M/year

How We Started A $30M/Year Warehouse Management Software And Outsourced Ecommerce Fulfillment Business

ShipHero co-founders built their successful e-commerce fulfillment business, offering warehouse management software and outsourced eCommerce fulfillment, growing revenues from zero to $30 million annually, processing over $5 billion of e-commerce gross merchandise volume (GMV) annually while only having received $435,000 in outside capital investment.

Read this case study

Read by 9,334 founders

Learn more about starting an ecommerce management software:

Where to start?

-> Ecommerce management software plan
-> How to finance an ecommerce management software?
-> How much does it cost to start an ecommerce management software?
-> Pros and cons of an ecommerce management software

Need inspiration?

-> Other ecommerce management software success stories
-> Marketing ideas for an ecommerce management software

Other resources

-> Ecommerce management software tips

How much can you make with an ecommerce management software?

With a ecommerce management software, you can make an average of $7.23M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $1. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 8 months.

How much does a ecommerce management software make a week?

Based on our data, average weekly revenue for a ecommerce management software ranges around $151K. As such, you could see monthly revenues of $603K.

To know if your ecommerce management software achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your ecommerce management software.

How much do ecommerce management softwares owners make?

The income of an ecommerce management software owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established ecommerce management software is about $151K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as an ecommerce management software owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Ecommerce Management Software Profit Margins

Generally speaking, an ecommerce management software can expect profit margin of around 89%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of an ecommerce management software, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, ecommerce management software owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, ecommerce management software owners can ensure long-term sustainability and profitability for their business.

Ecommerce management software owner salary

The salary of an ecommerce management software owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established ecommerce management software, in a prime position, might see an average weekly salary around the ballpark of $134K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a ecommerce management software may be a promising business to start - but the success of your ecommerce management software mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable ecommerce management software.

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Starting An Ecommerce Management Software: Everything You Need To Know

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