The internet has completely revolutionized the way of doing business. Online stores and eCommerce have taken place of the traditional shopping stores. During the first decade, eCommerce was dominated by giants like Alibaba, eBay, Amazon, and others. But now the trend has changed and every day hundreds of online stores are introduced. The fact that there are thousands of eCommerce sites lead us to one important question. How much an online shopping site makes in a month or year?
Online shopping store requires capital to buy a domain name, hosting, and initial products. And of course, you have to hire a professional shopify developer to build your site. But can you earn from it as much as other people are making?
The Short Answer
Potential entrepreneurs are always eager to know the short answer with an accurate figure. The truth is that it isn’t easy to answer how much an average site can make. The reason behind it is the uncertainty and untapped potential. There is neither a limit on the earnings nor a guarantee for how much you can make.
Here are the reasons why it is so and what are the factors behind it.
Factors that You Must Understand
These are the key elements that can affect the earnings of an eCommerce site.
Online shopping sites work like traditional shopping stores. The only difference is that customers view the products virtually and pay through cards. To earn more, you need more traffic on your website. The more people visit your site, the more chances you’ll have to sell the products.
You must know how much traffic you need to earn the desired income. And to bring a specific audience to your site, you’ll have to adopt different marketing channels.
Ecommerce stores run Competitor marketing campaigns to generate traffic. In order to draw the target audience and potential customers, these stores use various marketing channels. Each channel offers unique benefits and can generate leads for both single and multi-product businesses. There are d popular marketing channels i.e. email, PPC, SEO, and stoical media marketing.
Email marketing has always been an efficient way to grow sales. Though it is often been overlooked now, it still can provide better ROI than other marketing channels. Researches have shown that online stores can earn around £30 for every £1 spent.
Pay-Per-Click marketing is used to generate organic traffic from Google searches. Online stores pay Google to show their websites on the desired search space. This is a great way to make sales and create awareness about your eCommerce brand. PPC marketing can offer quick results and is a great strategy for newly built sites.
Search Engine Marketing
SEO is the backbone of your site whether you run a multi or single product store. It is the ideal approach to generate consistent traffic for your website. Though it takes time, you can get a better place on search engines without spending any money.
Social Media Marketing
Social media is another marketing channel that can generate traffic for your site. You don’t have to spend much or create extensive content for this channel. People can follow the links of blogs, product or reviews to jump to your site. Plus, you can build a healthy audience around your site.