1. Advertising
    y u no do it?

    Advertising (learn more)

    Advertise virtually anything here, with CPM banner ads, CPM email ads and CPC contextual links. You can target relevant areas of the site and show ads based on geographical location of the user if you wish.

    Starts at just $1 per CPM or $0.10 per CPC.

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...

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

    clp95, Mar 11, 2010 IP