Ecommerce Marketing Agency

How Profitable Is An Ecommerce Marketing Agency? (Updated for 2024)

Pat Walls

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Updated: October 5th, 2024

How Profitable Is An Ecommerce Marketing Agency? (Updated for 2024)

So you want to start an ecommerce marketing agency?

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

Especially considering:

You could start a ecommerce marketing agency with as low as $8
Based on our data, ecommerce marketing agencies generate an average of $5.56M per year
You could see gross margins as high as 60% with ecommerce marketing agencies

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 marketing agency.

Let’s dive in!

Is an ecommerce marketing agency profitable?

Yes, an ecommerce marketing agency 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 $5.56M per year with an estimated gross margin of 45%, you could expect to recover your investment within 10 months or even less.

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

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 marketing agency is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is an ecommerce marketing agency worth it?

If you’re wondering if a ecommerce marketing agency is worth it, the answer is a big YES. With ecommerce marketing agencies, you have the potential to earn $5.56M 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 $, 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 marketing agency 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 marketing agencies case studies.

Examples Of Profitable Ecommerce Marketing Agencies

Here are a few examples of profitable ecommerce marketing agencies, and a few more details about them:

1. Sidekick ($1.19M/year)

Zac and Brendan, co-founders of Sidekick, initially started a failed education platform called Secret Sauce. However, after receiving guidance from mentors at Grid 110, they pivoted to web design for startups and launched Sidekick. They attracted clients by offering month-to-month marketing services in addition to web design, and have since focused on serving the eCommerce space with their expertise in design and marketing. After a year in business, they have grown their revenue to $12,000/month and are aiming to reach $20,000/month by summer.

Is it profitable? Yes
How much money it makes: $1.19M/year

How We Started A $12K/Month Marketing Agency For Ecommerce

Sidekick, a data-driven web design and digital marketing agency for eCommerce businesses co-founded by Brendan and Zac, grew from $0 to $12,000/month in revenue within a year, specializing in Shopify and Squarespace development, email marketing, PPC campaigns, and more.

Read this case study

Read by 8,404 founders

2. Boundless Labs ($99.6M/year)

Chase Dimond, the co-founder of Boundless Labs, came up with the idea for his email marketing agency after realizing the potential of email marketing for eCommerce brands. With impressive figures, such as driving over $25 million in email attributable revenue and working with clients who generate ~30% of their total revenue from email, Boundless Labs quickly became a successful and sought-after agency in just 18 months.

Is it profitable? Yes
How much money it makes: $99.6M/year

How I Started A $55K/Month Email Marketing Agency Specialized in Ecommerce

Boundless Labs is an email marketing agency for eCommerce brands that has generated over $25 million in email attributable revenue for their clients since launching 18 months ago and currently makes around $90K per month, with plans to reach $100K per month by the end of January 2020 through client referrals, strong relationships, and hard work.

Read this case study

Read by 12,815 founders

3. Retention ($21.4M/year)

Adam Robinson, the founder of Retention, found inspiration for his business while grappling with challenges from his previous startup. He initially struggled to compete in the highly saturated email marketing space, dominated by giants like MailChimp and Klaviyo, which left him searching for a unique angle. One day, he learned about the possibility of identifying email addresses of website visitors who hadn't filled out a form, sparking an idea that set him on a year-and-a-half journey to figure out how to implement this technology effectively.

Adam conducted extensive research and development to create a feature that could capture these anonymous email addresses through a method that combined AdTech and MarTech. When users of the initial feature in his email app gave positive feedback despite the cumbersome process, he recognized a strong product-market fit and decided to spin out the feature into its own product. This product eventually evolved into Retention.com, a tool designed to help businesses retain customers by capturing unidentified potential leads.

Throughout the ideation phase, Adam faced numerous challenges, including technical barriers and market apprehension about data privacy. However, through continuous experimentation, customer feedback, and refining his concept, he found a scalable solution that addressed a significant pain point for his target audience. His key lesson was the importance of identifying a unique and valuable proposition within a competitive space by listening closely to early user feedback and being willing to pivot based on those insights.

Is it profitable? Yes
How much money it makes: $21.4M/year
How much did it cost to start: $2M

How Adam Robinson Bootstrapped Retention.com to $21M ARR

Retention.com converted anonymous website visitors into $20 million ARR by leveraging $5,000 in Facebook ads to generate $10,000 MRR in the first month, scaling with cold emails, LinkedIn thought leadership, and personalized events for high-value clients.

Read this case study

Read by 55 founders

Learn more about starting an ecommerce marketing agency:

Where to start?

-> How to start an ecommerce marketing agency?
-> How much does it cost to start an ecommerce marketing agency?
-> Pros and cons of an ecommerce marketing agency

Need inspiration?

-> Other ecommerce marketing agency success stories
-> Marketing ideas for an ecommerce marketing agency
-> Ecommerce marketing agency slogans
-> Ecommerce marketing agency names

Other resources

-> Ecommerce marketing agency tips

How much can you make with an ecommerce marketing agency?

With a ecommerce marketing agency, you can make an average of $5.56M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $8. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 10 months.

How much does a ecommerce marketing agency make a week?

Based on our data, average weekly revenue for a ecommerce marketing agency ranges around $116K. As such, you could see monthly revenues of $463K.

To know if your ecommerce marketing agency 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 marketing agency.

How much do ecommerce marketing agencies owners make?

The income of an ecommerce marketing agency 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 marketing agency is about $116K. 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 marketing agency owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Ecommerce Marketing Agency Profit Margins

Generally speaking, an ecommerce marketing agency can expect profit margin of around 45%. 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 marketing agency, 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 marketing agency 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 marketing agency owners can ensure long-term sustainability and profitability for their business.

Ecommerce marketing agency owner salary

The salary of an ecommerce marketing agency 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 marketing agency, in a prime position, might see an average weekly salary around the ballpark of $52.1K.

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 marketing agency may be a promising business to start - but the success of your ecommerce marketing agency mostly depends on your effort and your approach.

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

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Starting An Ecommerce Marketing Agency: Everything You Need To Know

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