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Cost of Sales

What is your cost of sales.

         

jaski

12:42 pm on Aug 4, 2003 (gmt 0)

10+ Year Member



I was just wondering what the norms are and how they vary from sector to sector.

By cost of sales I mean total costs until completion of the sales process (as percentage of total sales revenue. not including any fullfilment part if there is any ie postage and packaging etc.)

These are the costs applicable in our case

advertising
hosting, updates and SEO
payment gateway
provision for chargebacks.

We have a site which I believe is doing wonderfully well.

Sector: electronic components and accessories.
Cost of sales: 9%
Scale : 30-40K USD per month

Essex_boy

6:45 pm on Aug 4, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



Seems good to me. I ran a site offering services the firstmonth we lost money on a customer to start with but they stayed on average 3 months.

So our cost per customer was around $15 each to clear $30 profit.