E-Commerce

It’s always difficult to answer budding e-commerce entrepreneurs when they ask: ‘how much money can I make with an e-commerce store?’.
The reason for this is simple, there isn’t a limit to the amount of money which you’ll be able to make. It doesn’t matter whether you’re looking to earn $10,000+ every month, or you’re just trying to save up some extra cash for a rainy day. As long as you’re running your e-commerce business effectively you’ll be able to reach whatever financial goals you set for yourself.
We’ve created this article to show you how to start making sales with your e-commerce business and we’ve included some free tools which you can use to help you manage your finances. At the end of this article, you’ll be filled with e-commerce ideas to make money for your own e-commerce store.
Let’s get started.
It’s critical that you’re able to drive a large amount of traffic to your online store. When your e-commerce business has a high level of traffic, there are plenty of potential customers who are visiting your store and viewing your products. If your e-commerce store is selling great products at an affordable price point then it’s only a matter of time until you start generating both traffic and revenue.
Unfortunately, there’s no guarantee that you’ll generate traffic to your online store straight away. You’ll likely need to take advantage of marketing channels to draw traffic to your store. Before making a decision about which marketing channels are the best fit for your e-commerce business it’s important that you’re aware of the amount of traffic which you’ll need to generate to reach your financial goals.

Understanding How Much Traffic You Need

The amount of traffic which you’ll need to generate for your e-commerce store will differ depending on the amount of money that you want to earn.
You can easily find out the amount of traffic which you’ll need to generate by using Oberto's Dropshipping Traffic Calculator. All you need to do is input the amount of money you want to earn and the number of days you want to take to earn it in. The tool will break down the number of visitors which you need to draw to your online store and the number of orders which you’ll need to generate.

We’ve provided an example below which gives you an overview of how the tool works:
Note that the calculations from this example assume the following:
  • The average conversion rate for an e-commerce business is 2%. This means that for every 100 people who visit your store you can expect 2 people to make an order.
  • The average order value for e-commerce stores is $45. This number is taken from Oberlo’s user statistics.
  • You will be using a 2x margin. This means you’ll be charging your customers double the price that you purchase the products for.
  • The average cost to acquire a user is $0.35. This statistic is based on e-commerce businesses using Facebook ads in the US.
Once you have an understanding of the amount of traffic which you’re going to need to generate to reach the financial goals you’ll need to think about how you’ll generate traffic to your online store.

How To Generate Traffic


The fastest way to generate traffic to your online store is through marketing campaigns. There are a variety of different marketing channels which you can use to draw potential customers to your e-commerce store. Each marketing channel has unique benefits and requires a varying degree of investment from your side.
We’ve broken down the different marketing channels which you can use to help you make the right decision for your e-commerce business.
PPC Marketing Channels
PPC marketing, or pay-per-click marketing, involves businesses paying for a better chance to generate traffic for their online stores. If you’ve ever noticed that a Google search result had a yellow ‘Ad’ logo next to it, or a Facebook post with ‘Sponsored’ at the top, then you’ve already seen PPC marketing in action. Successful e-commerce stores typically have some PPC marketing campaigns running, as it’s a great way to make sales.
PPC marketing is great for generating traffic, increasing awareness for your brand, and ultimately increasing the number of sales you make. You’ll receive results from your campaigns quickly and you’ll only incur marketing fees when somebody clicks on your advertisement.
There are three main platforms which you can use for PPC marketing which are Google, Bing, and Facebook. If you choose Google or Bing for your PPC marketing you’ll be able to research the number of people who are searching for what you are posting, which will help to make your e-commerce stores advertisements more effective. The downside of using Google and Bing is that you won’t have exact information about your target audience, like their age, gender, or interests.
If you’re using Facebook for your PPC marketing then you will be able to obtain information about your audience’s age, gender, and interests, but you don't know how popular your advertisements will be.
If you’re interested in trying out PPC advertising then check out this Google AdWords guide by Neil Patel and Buffer’s Facebook Marketing guide for further information.
Low-cost Marketing Channels
If the thought of investing money into your marketing efforts sounds like a daunting prospect then you can take advantage of low-cost marketing channels. Low-cost marketing channels take longer to yield results than PPC marketing, so it’ll take longer to draw the necessary traffic to your online store, but if done effectively they can offer a cost-effective way to draw traffic to your e-commerce store.
Content marketing is a popular low-cost marketing channel which you can use to generate traffic to your online store. You can create a blog and publish insightful SEO content which is related to your products to increase your organic search rankings and brand authority. You can use social media for your e-commerce business to alert your audience about new products, flash sales, or announcements related to your e-commerce store.
There are also discussion platforms, like Reddit, which you can use to generate more traffic for your online store. Reddit has a wide variety of niche-specific categories which are known as ‘Subreddits’ that you can use to engage with other users who are interested in your products.
If you’ve created any content marketing resources then you can also share them on Reddit, providing that they’re relevant to an ongoing discussion. As you already know that these users are interested in your niche, it’s a great way to draw high-potential customers to your online store whilst creating awareness for your brand.

Working Out Your Profits

When your e-commerce business starts to make sales it’s important that you can work out how much of the money is profit. Oberto has created a simple Monthly Profit Calculator on Google Sheets which you can use to work out the amount of profit that your online store is generating — all you need to use it is a Google account.
All you need to do is copy the form which we’ve created and pasted it into your own Google Sheet and you can input your own figures into the sections marked in green. When you’ve input your figures into the sections in green the Monthly Traffic Calculator will generate your gross revenue, net revenue, and your profit. It’s important that you understand how the calculations for gross revenue, net revenue, and profit work, so we’ve broken them down below:
  • Gross Revenue: You can work out the gross revenue which your online store has earned by multiplying the price which you’re selling your products for by the number of products which you’ve sold.
  • Net Revenue: To work out the net revenue you’ll first need to multiply the cost which you acquire your products for by the number of products which your online store has sold. When you’ve completed that sum you simply subtract your result from the gross revenue and you’ll arrive at your e-commerce business’ monthly revenue.
  • Profit Earned: To work out the profit which your store has earned in a month you simply subtract your marketing budget from your net revenue.

It’s Time To Start Earning Money

courtesy:tips-box.com.

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