Im going to be building and supporting an online store for a local mom and pop store. I was wondering what would be a good % of sale be for me to ask? I was thinking 20%? What do you guys think? I will be the owner of the website, I will be doing all the work on it. They will only ship out the products and do the billing.
They are a local store, keep their own inventory. They get their products directly from manufacturers. Im not sure what the mark up is, will have to ask about it.
Check your competitors. Check your current conversion rate. The higher your conversion rate (number of visitors which are converted into sales), the lower your commission rate, generally. Price is also a factor, as in, the higher the price, the lower the commission you really want to offer. There's no real set default amount. Electronic retailers such as liksang offer 2% for some items, whereas some adult sites pay 80%+ commission. It really depends on what you're selling, and how well it sells.
Markup usually is about 100% (being very general) so asking 20% (which is 40% of the profit) is not out of line in my opinion.