If you’re planning on making a profit from your online store you will have to have some sort of calculation template to ensure that you’re not paying more than your making form your products. Each product that you will add to your site will have to be looked at in detail to ensure it will be worth your while to keep it on.
The comparison of the Brick and Mortar store compared to the online store can be used here for me to make my point. Let’s take a pair of shoes in this instant; you will calculate the cost of the product as the price of the product as charged at the manufacturer, transportation costs, packaging, site overheads and your profit. In my next post I’ll explain in detail how each of these are calculated.
EXAMPLE:
Weatherly Green Shoes.
Price of shoes at manufacturer: $50.00
Transport from Manufacturer to You: $8.00
Packaging: $5.00
Transportation to the Buyer: $10.00
Site overheads: $2.00
You’re Profit (30%): $25.00
Total cost of product: $100.00
This means your product still falls in an acceptable price range and you’re making $25 for very little work! For one sale this sounds like a little but say you end up selling 10 pairs of shoes a month, which adds up to $250.00. I’d like to remind you that this is only for that specific product. If you have 10 products that sell equally as good you will end up making $2500.00 a month from running between the manufacturer and the couriers. That is if you’re planning on selling about 20 products.
Please note that the example I’ve used is not the only type of products that sell. Electronics are making a killing on online stores not to mention the fact that people will buy anything online.
My next post will explain more about where to find your products and to ensure you make a success of your online store.
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