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Ecommerce Forum

Yearly Revenue - Profit Margin?

 6:06 pm on May 5, 2008 (gmt 0)


I was just wondering, people who have an ecommerce website:

1. What type of revenue increases have you seen yearly since you started?
2. What is the difference between your current revenue vs. your 1st year revenu?
3. What is your current profit margins (%) based on your revenue?

I know all ecommerce websites are not the same, but I was just interested in what revenue is possible once you have a successful ecommerce website.

Thank you,




 9:29 pm on May 5, 2008 (gmt 0)

I know all ecommerce websites are not the same, but I was just interested in what revenue is possible once you have a successful ecommerce website.

This question is really to general to give an answer please give your thought on what successful is to you because it could be far less or far more to me.


 10:09 pm on May 5, 2008 (gmt 0)

Okay, maybe I shouldn't have used the word "successful"; pretend I didn't say that word. :-) Basically what are your current revenue and profit margins?


 10:16 pm on May 5, 2008 (gmt 0)

You don't have to be quicker than a bear, you just have to be quicker than your associate.

Numbers are a game of madmen and fools, play to win and you will have success in every aspect of life.

Did I just say that? Too many Jeffrey Gitomer books maybe..


 10:45 pm on May 5, 2008 (gmt 0)

Very good advice and very true! :-)


 7:01 pm on May 7, 2008 (gmt 0)

Ok, I guess since no one is answering the above questions; how about these...haha :-)

1. How many of you have generate all your income from your ecommerce website?

2. Or how many of you generate income from both your ecommerce website and either a part-time/full-time job elsewhere?

Just wondering to see how much income an ecommerce business is substituted from your total income amount.



 11:36 am on May 9, 2008 (gmt 0)

It can sure vary by business. I've had two internet businesses. The first one, ghostwriting, started off the internet and then became exclusively on the internet. I supported myself easily with that. I got really sick of ghostwriting, though, and decided to start an online shop connected with my hobbies. I continued to work fulltime ghostwriting, which for me meant I took on enough jobs to work about 10 days a month and then worked on the shop the rest of the time instead of just lying on the beach, as I previously had. It took three years of doing both before I was able to completely quit ghostwriting.

The ecommerce biz still makes me much less than I made ghostwriting--about what I made teaching years ago--and I work at least five days a week now, but I don't feel all ragged around the edges like I did with the ghostwriting. My profit margin with ghostwriting was way, way higher. With the ecommerce biz, net is about 1/3 of gross. I can't afford insurance, and dumping the car was a wise decision. But I really love what I do. I think most people would not enjoy my lifestyle, though: my weird little business doing what I love is more precious to me than nice furniture or a good car. I guess it comes down to this for me: work has to be as little like work as possible. Life is too short for that work baloney.:)


 11:34 pm on Jun 12, 2008 (gmt 0)

We make all our income from our ecommerce site. Sales have been increasing significantly each year as we go along.


 3:27 am on Jun 13, 2008 (gmt 0)

My site is a combination ecommerce/subscription/banner ad revenue-generating site.

Up until a few months ago I needed to continue to do photography to pay the bills, something I've been doing for 30 years.

Early this year I had a good-paying advertiser fall in my lap, and I started my online store. The combination has resulted in a full-time job and income for me. I don't make anywhere near the money I made in photography years ago, but that industry has been dying for over ten years.


 12:32 pm on Jul 4, 2008 (gmt 0)

"1. How many of you have generate all your income from your ecommerce website?"

I do - 99% of it, anyway (1% walk-in traffic), and have for 10+ years. 40+ straight quarters of profitability.

I was into this before there was Google, before their was pay per click (which started at a just a 'penny'), when shipping was actually profitable, and before all of the other time-wasters came to be (ppc tracking, articles, blogs, dimensional weight shipping, etc.)

I can also tell you this stuff has basically sucked all of the enjoyment out of it for me. The first 5 years were fun - the last 5 years have not been fun, and the $$$ have nothing to do with that.

Profit margins aren't what they used to be for a variety of reasons, but I saw the writing on the wall 5 years ago, and started getting into real estate and such with the biz profits. I do my work from home as of 4 years ago, and only spend about 2-3 days a month at my actual 'business' location.

My goal is to walk away from ecommerce in 5 years - sell it to an employee cheap, a competitor, whatever...while I'm exceedingly grateful for the success I've had, and thanksful that virtually everything I own is because of it, I've had enough.


 7:13 am on Jul 7, 2008 (gmt 0)

I re-read that last post, and it sounded a bit 'arrogant', which isn't what I intended.

Keep in mind that I'm in an industry that is nowhere near as competitive as many of you guys/gals happen to be (travel, medical, etc.)


 8:31 am on Jul 7, 2008 (gmt 0)

>> my weird little business doing what I love is more precious to me than nice furniture or a good car.

i agree with that sentiment!

i sell the same thing offline as online and i make about half my earnings from each, i enjoy both aspects of the business.

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