Ecommerce Retailing Business

How Profitable Is An Ecommerce Retailing Business? (Updated for 2024)

Pat Walls

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Updated: October 5th, 2024

How Profitable Is An Ecommerce Retailing Business? (Updated for 2024)

So you want to start an ecommerce retailing business?

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

Especially considering:

You could start a ecommerce retailing business with as low as $8
Based on our data, ecommerce retailing businesses generate an average of $5.78M per year
You could see gross margins as high as 69% with ecommerce retailing businesses

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 retailing business.

Let’s dive in!

Is an ecommerce retailing business profitable?

Yes, an ecommerce retailing business 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 $5.78M per year with an estimated gross margin of 45%, 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 retailing business.

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

Is an ecommerce retailing business worth it?

If you’re wondering if a ecommerce retailing business is worth it, the answer is a big YES. With ecommerce retailing businesses, you have the potential to earn $5.78M 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 retailing business 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 retailing businesses case studies.

Examples Of Profitable Ecommerce Retailing Businesses

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

1. Breeze Mobility ($300K/year)

Breeze Mobility was founded by Tom White after experiencing difficulty sourcing mobility aids for his family members with mobility issues. With a background in digital marketing and running online businesses, Tom saw the potential for growth and the opportunity to make a positive impact. Breeze Mobility has been turning over around $30,000 a month and is poised for breakout success in 2021, with plans to become a social enterprise and give back to organizations supporting people with disabilities.

Is it profitable? Yes
How much money it makes: $300K/year
How much did it cost to start: $1K

How I Started A $25K/Month Mobility Products Ecommerce

Breeze Mobility is a successful eCommerce store selling a range of high-quality mobility aids & wheelchair accessories and has grown from a few thousand dollars in revenue to turning over $30,000 a month, with goals to become a social enterprise and increase its range of own-branded wheelchair accessories.

Read this case study

Read by 9,323 founders

2. Vysn ($1.8M/year)

Ronen Lee Wolf, Founder of Senditures, discovered his entrepreneurial path after quitting his job and dropping out of college. Unfulfilled in traditional roles, he mastered eCommerce during his tenure at a beauty company, implementing a multi-channel selling strategy that doubled revenue and ultimately inspired him to launch Senditures, now on track to hit $2 million in 2024.

Is it profitable? Yes
What's the gross margin? 55%
How much money it makes: $1.8M/year
How much did it cost to start: $1K

How I Grew From $17/Hour to Building A $2M Ecommerce Sales Agency

This founder went from an engineering student to a booming eCommerce agency, showcasing a leap from traditional career paths to entrepreneurial success. With a projected $2 million revenue for 2024, this case study highlights the strategic multi-channel selling approach that propelled this company to rapid growth.

Read this case study

Read by 1,905 founders

3. Techovant Solutions ($4.2M/year)

Boniface Kuria's lightbulb moment came when he saw a gap in the market for pre-installed OS on new computers. He launched Techovant Solutions in 2019, turning a side-hustle into a $350,000 monthly revenue machine.

Is it profitable? Yes
What's the gross margin? 30%
How much money it makes: $4.2M/year
How much did it cost to start: $300K

My Website Makes $350K/Mo Selling Electronics All Over Kenya

Learn how Boniface Kuria's e-commerce retail store, Techovant Solutions, went from startup to $350,000 monthly revenue in the electronics niche through strategic supplier partnerships and targeted online marketing efforts, with lessons on delegating tasks and timely product launches.

Read this case study

Read by 680 founders

Learn more about starting an ecommerce retailing business:

Where to start?

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

Need inspiration?

-> Other ecommerce retailing business success stories
-> Marketing ideas for an ecommerce retailing business

Other resources

-> Ecommerce retailing business tips
-> Blog post ideas for an ecommerce retailing business

How much can you make with an ecommerce retailing business?

With a ecommerce retailing business, you can make an average of $5.78M 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 8 months.

How much does a ecommerce retailing business make a week?

Based on our data, average weekly revenue for a ecommerce retailing business ranges around $120K. As such, you could see monthly revenues of $482K.

To know if your ecommerce retailing business 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 retailing business.

How much do ecommerce retailing businesses owners make?

The income of an ecommerce retailing business 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 retailing business is about $120K. 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 retailing business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Ecommerce Retailing Business Profit Margins

Generally speaking, an ecommerce retailing business 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 retailing business, 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 retailing business 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 retailing business owners can ensure long-term sustainability and profitability for their business.

Ecommerce retailing business owner salary

The salary of an ecommerce retailing business 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 retailing business, in a prime position, might see an average weekly salary around the ballpark of $54.2K.

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

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

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Starting An Ecommerce Retailing Business: Everything You Need To Know

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