Forum Moderators: buckworks
I can't for the life of me remember where I've seen that. Does anyone know if this is true?
Obviously I understand an average is that - an average. It will also be different by country and sector.
I'm just interested if anyone has published a metric showing the average growth rates for an internet business?
Thanks in advance.
a growth rate of 360% per year
Typical Accounts for Average Ecommerce Operation
Y1
Income:
- $20 = Proprietor donation to business due to lack of receipts kept
Expenditure:
Hosting with free ecommerce system, domain name and stamps for the drop-shipper agreement forms:
- $20
Turnover: $20
Total profit or (loss): 0
Y2
Income:
- $72 Sales (3), finally released by the processor
Expenditure:
- $18 Hosting with free ecommerce system, domain name
- $52 Owner's labour - $1 a week
Turnover: $72
Total profit or (loss): $2
Growth rate analysis
72 / 20 = 3.6 => 360% growth!
Conclusion: Ecommerce is a great business for everyone to start. You can get extraordinary growth.
True conclusion: Average annual increase in turnover is a figure of very little value when it isn't qualified by sector, model and size of business.
I don't have a clue were you read this but it is a bunch of bull. I would supect a select few would be that but that is far far from the real truth.
The internet is just like if not harder than a brick and motor business. I would supect 90% of the ecommerce business doing business as an ecommerce only work another job to support their lives.
Don't be fooled this is a tough tough business and without organic traffic you are pretty much at the mercy of the PPC engines and if your margin isn't there you will not make it, and the only business that profits from your business will be the PPC engines.
I want you to know don't read all the hype ask questions be open minded and be prepared for some hard work as this
Ain't no Rose Garden more like a Killer Bee Hive....
This will also increase the market share of ecommerce as it steels away from the brick / mortar business.
By the way, I have a b/m business, just not people walking in to purchase things... Maybe this b/m should be replaced with a large parking lot business. I have a tiny parking lot :-)
1. Increase in online sales month on month - this could be the pct growth
2. The pct of new businesses coming online and selling
3. It could be an investigative report, detailing the average of a given selection of business.
What I was wondering was if anyone had anything objective to back up what I believe I've read.
Hearsay doesn't help.
I would first find out if you can back up what you have read as from your post it doesn't seem that way.
google this I am sure there is enough
new ecommerce growth
I can't for the life of me remember where I've seen that. Does anyone know if this is true?
Between year 1 and year two we saw 400% growth, which exceeds the 360% I seem to remember reading.
My business needs to grow by a factor of three again, to be able to allow me to consider leaving my full time job. Alas housing in the UK is too expensive.
We made about 10k ecommerce-turnover in 2003, 65k on 2004 and 226k in 2005, so -yes- such growth rates are possibile, but I believe only in the beginning. I can only talk about B&M-stores: As soon as you can make a living from it (which would have been the case for me in 2005, if this hadn't been my own company anyways;), you get considerable problems to solve concerning internal warehouse management.
It is a huge difference whether you send three packages per week or thirty or more per day, but I do not have the time to list all the things I did in the past two years, when growth rates went down to 30 % (which I believe is realistic to plan for a longer time-span).
Growth-rate of your ecommerce project mainly depends on growth rate of your website. It is quite easy to let your ecommerce-shop grow by adding new products, but again it is a huge difference whether you boost from 100 to 300 products or from 3000 to 9000. It is quite easy to grow from 10 qualitative, topic relevant backlinks to 30, but it is really hard to get from 300 to 900. Particularly all webmarketing-aspects are really, really hard to delegate. And beyond a certain volume you can only grow by delegation.
In the first few years of an ecommerce site's life (assuming you target a specific niche and do it well), growth will pick up rather steadily. After you start to peak, growth will slow down but it will still be there assuming you stay with the trends and know your stuff.
At that point, a whole new host of options will also open up to you in regards to other monetization techniques or outright selling the business and starting over in a new niche.
