Ecommerce Plugin

How Profitable Is An Ecommerce Plugin? (Updated for 2024)

Pat Walls

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Updated: September 13th, 2024

How Profitable Is An Ecommerce Plugin? (Updated for 2024)

So you want to start an ecommerce plugin?

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

With a market size of $2.72T - there’s plenty of business to go around.

Especially considering:

You could start a ecommerce plugin with as low as $300
Based on our data, ecommerce plugins generate an average of $281K per year
You could see gross margins as high as 45% with ecommerce plugins

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 plugin.

Let’s dive in!

Is an ecommerce plugin profitable?

Yes, an ecommerce plugin 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 $281K per year with an estimated gross margin of 83%, you could expect to recover your investment within 12 months or even less.

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

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

Is an ecommerce plugin worth it?

If you’re wondering if a ecommerce plugin is worth it, the answer is a big YES. With ecommerce plugins, you have the potential to earn $281K 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 $2.72T, 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 plugin 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 plugins case studies.

Examples Of Profitable Ecommerce Plugins

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

1. 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 5,848 founders

2. CartFox.io ($18K/year)

Simon, the founder, started his eCommerce business with a 5K EUR investment inherited from his grandmother. After successfully creating several brands and generating over 150M+ EUR in revenue, he identified the need for a SaaS solution for SMS marketing and cart abandonment recovery in the competitive EU eCommerce market. This led to the birth of CartFox.io, which aims to become their flagship product within a year or two.

Is it profitable? Yes
How much money it makes: $18K/year
How much did it cost to start: $120K

How We Built A $1.5K/Month SMS Marketing SaaS With Just A Plain PHP Tech Stack

Slovenian eCommerce business owner turns internal solution into SaaS product CartFox, with over 150M EUR revenue generated through several brands, but still breaking even $1.5K/month with salaries included from CartFox.

Read this case study

Read by 2,018 founders

3. SuperLemon ($348K/year)

After 2 failed startups, the founders set their sights on working on something people want and are ready to pay for. Their priority even before they had decided on the idea for the product was to find an audience, a group of people who faced a problem, and who currently pay for a software tool to solve their problem. App marketplaces were a way to mitigate some of this risk.

They had some prior experience with building a Shopify store, and also had a friend who built a $20k/mo Shopify app without any employees.

To find problems worth solving, they browsed the entire Shopify app store, which at the time had 3,000+ apps. Going through every single app, jotting down interesting ones, especially ones that had poor reviews indicating that they could do a better job at solving the same problem, and picked 5 out of the 100s of those ideas they identified, based on their goals and constraints:

An existing problem that people were already paying for
Existing apps weren’t doing the best possible job at solving customer’s needs
The app had the potential to grow to at least $3k in MRR, which after costs would allow the founders to live comfortably in Bengaluru

Is it profitable? Yes
How much money it makes: $348K/year
How much did it cost to start: $0

How We Developed A $29K/Month WhatsApp Plugin For Shopify

SuperLemon, a WhatsApp plugin for Shopify eCommerce stores, crossed $29,000 in MRR as of July 2020, with 20,000 users from 50+ countries and 1700+ paying customers, all acquired through organic marketing strategies and a relentless focus on customer service and satisfaction.

Read this case study

Read by 23,497 founders

Learn more about starting an ecommerce plugin:

Where to start?

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

Need inspiration?

-> Other ecommerce plugin success stories
-> Marketing ideas for an ecommerce plugin

Other resources

How much can you make with an ecommerce plugin?

With a ecommerce plugin, you can make an average of $281K revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $300. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 12 months.

How much does a ecommerce plugin make a week?

Based on our data, average weekly revenue for a ecommerce plugin ranges around $5.85K. As such, you could see monthly revenues of $23.4K.

To know if your ecommerce plugin 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 plugin.

How much do ecommerce plugins owners make?

The income of an ecommerce plugin 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 plugin is about $5.85K. 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 plugin owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Ecommerce Plugin Profit Margins

Generally speaking, an ecommerce plugin can expect profit margin of around 83%. 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 plugin, 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 plugin 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 plugin owners can ensure long-term sustainability and profitability for their business.

Ecommerce plugin owner salary

The salary of an ecommerce plugin 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 plugin, in a prime position, might see an average weekly salary around the ballpark of $4.85K.

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

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

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Starting An Ecommerce Plugin: Everything You Need To Know

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