Total cost of business?

Discussion in 'eCommerce' started by clp95, Mar 11, 2010.

  1. #1
    I'm trying to figure out the total cost of running a ecommerce site. I do not have a lot sales so I think I'm paying too much. Additionally, I'm trying to figure out costs so as I grow I don't put myself in a rut by lowering prices too much at the onset. If you can provide similar data and size of your biz I would appreciate it...otherwise I may have to close up shop.

    I get on avg 15 txn. Per $120 txn I'm making ~$3.55. In the end, I can't justify spending time and dev resources for $4x15. The site is in the wedding favor industry

    $80<- CGS (50% markup on goods)
    ~$20 for CPC (20 clicks to convert to 1 txn. Is this good?)
    ~$10 for free shipping
    $3.25 -> PayPal txn fee
    $2 -> PayPal monthly fee ($30 for 15 txn)
    $0 -> Cart (oscommerce)
    $1 -> hosting + SSL
    $0.10 -> Fulfillment (my time to fulfill)
    $0.10 ->servicing/CS (my time to fulfill)

    The way i think about...these are the things I have to do...

    Promotion
    • Advertizing
    • SEO
    • PPC
    • Comparison Site
    Host my catalog / Checkout
    • Shopping Cart
    • Risk tools
    Payments
    • Gateway
    • Merchant Account
    • Alternatives - PayPal, Amazon, etc.
    Servicing
    • IM software
    • Staff
    • Fulfillment tools / drop shippers
    • People
     
    clp95, Mar 11, 2010 IP