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Looking to build my first ecom site
I have alot of traffic for a particular niche that im quite passionate about. I can get the item for around 1.52 i didnt calculate repackaging and gas
I can resell this for probally 4.5 to 5.00 a lbs ...
I would essentially only profit at 2.50 a lbs?
Is this a good enough margin? The startup cost are really low since i can get the item on a need to basis.
Im looking for somethign on the side to get my feet wet in the ecomerce site of things.
What is your volume, what is the average purchase price?
Normally for an ecommerce transaction you're paying like 30 cents plus 2.5% in processing. Plus whatever time to fill the order.
30 cents of 2.50 is a big chunk, if you only sell 1 pound at a time. Then you spend your time processing the order for only like 2.20 in profit? Yech.
If however people are buying 10 pounds at a time, much better situation, still not great profit.
On a product I stock I personally like at least $30+ in profit per sale. If I don't stock it and use a drop shipper I'll accept less.
The lower your profit per sale, the more sales you need to make good money, its why I like selling more expensive things than cheap things.
I see for beginners orders will be
2 lbs
5 lbs for more experienced
I think i can come up with a upsell package as well to double the order for the 2 lbers. I think this is the only way i could increase the order size like a starter kit....
One of the benefits is i dont have to stock the product and can pick it up on a weekly basis if needed.
Not looking to make a living off of this ... its my first venture into ecom .. would like a couple hundred a month extra ... Unsure if the return would be worthwhile mostly if im getting lots of support questions or customer service issues.