With the shift from a brick-and-mortar store to an online platform, besides being a compulsory choice for businesses to survive under the impact of Covid-19, eCommerce is more than an option. With smartphones and easy access to e-commerce stores, shoppers now lean more towards eCommerce for their shopping needs. You name it, from groceries to gadgets to clothing, and you get several small and medium-sized eCommerce stores ready to serve your needs. In 2022, the total number of digital buyers in the United States alone was over 280 million. But how much can people earn from eCommerce? This article will give you some ideas and solutions to optimize the revenue.
How much can a new eCommerce store make?
Now let’s see how much a newly set up eCommerce store can make. Data shows that a newly set eCommerce store can make just over $63,000 in monthly revenue in three months. While at one year, they can average $127,000 in monthly revenue, and after three years, they are ready to churn out an average monthly revenue of $352,000, an increase of over 175% between year one and year three.
Hence, if we need to figure out how much money you can make on average with your new eCommerce company, it could be below $39,000 in revenue in their first month in business and generate $6.5 million in total revenue after three years.
E-commerce Industries with Highest Earnings
Of course, the average earning for eCommerce businesses is understated by the vast differences between different markets. To better understand the nuances of online selling, you will need to know the top and bottom eCommerce markets. Here are some noticeable eCommerce markets with exceptionally high ROI and their counterpart.
E-Commerce Industries with Highest Earning
- Fashion and apparel: The fashion industry is a lucrative sector in e-commerce and is projected to reach $759.5 billion by 2024.
- Consumer electronics: The consumer electronics industry, which includes smartphones, laptops, tablets, and smart home devices, is another high-earning sector in e-commerce.
- Beauty and personal care: The beauty and personal care industry is also snowballing in e-commerce, with online sales of cosmetics, skincare, and hair care products on the rise. Beauty eCommerce is projected to reach $95 billion by 2025.
- Home and garden: The home and garden industry includes various products, such as furniture, home decor, gardening tools, and appliances. This sector is also seeing significant growth in e-commerce.
- Food and beverage: Online sales of food and beverage products, including groceries and meal delivery services, have multiplied in recent years due to the convenience and accessibility of e-commerce.
E-Commerce Industries with Lowest Earning
- Office and school supplies: The global eCommerce market for office and school supplies is suffering from declining demand for certain products due to remote work and remote learning during the pandemic.
- Sporting goods: Sporting equipment has lower profit margins due to the high cost of shipping large or heavy items. The global eCommerce market for sporting goods is projected to reach $52.3 billion by 2025.
- Toys and hobbies: Changes in consumer behavior, such as a shift towards digital entertainment and gaming, make entering this eCommerce niche more difficult. In the United States, online sales of toys and hobby products are projected to reach $14.1 billion in 2022.
However, profits for eCommerce stores tell only half the story. Newly opened eCommerce businesses have a failure rate of over 80%, attributed to high investment costs, labor shortages, and low demands. So, take this information with a grain of salt if you are considering making an eCommerce shop to make a quick profit. It takes a lot of planning and market research to reach that average $100,000+ revenue, which we will discuss here.
Some free tools to leverage
You must drive a good amount of traffic to your online store to generate sales. To get the buyers and encourage them to purchase, follow these handy tips:
eCommerce social media is using social media to market an eCommerce store. E-commerce stores can use social media to build brand awareness, attract online followers, and generate online sales. Companies can also use social media to get their brand, profile, and products shared online.
Considering 71% of adults with Internet access use social media, almost every business can benefit from marketing on platforms like Facebook, Twitter, and Instagram. This is especially true for eCommerce retailers.
Social media platforms offer a less formal way of communicating with potential customers than any other advertising channel. This makes it easy to engage in two-way conversations with users interested in learning more about your products.
eCommerce automation uses software that will complete tasks for you rather than doing them yourself. While some aspects of the business will still require human input, many eCommerce tasks can be automated successfully. Automation works best for small, repetitive daily tasks that are always performed consistently.
Automation provides numerous benefits to your eCommerce business because it allows you to accomplish things you otherwise wouldn’t be able to do. Some tasks can be extremely valuable to your business but aren’t feasible to perform manually. Many tasks involve constantly monitoring and collecting information, looking for specific parameters, and following a particular procedure (e.g., sending an email, flagging orders, and adding customers to specific segments). Automation software handles all this data and proceeds accordingly without intervening once you’ve set it up.
If you are on BigCommerce, Atom8 is a must-try automation tool to save time managing your store. Check it out here:
Having high-quality content on your B2C eCommerce website is one of the best ways to increase traffic and improve your Google search ranking. Finding keywords that people search for, choosing high-value keywords, and publishing content that Google searchers want, are some of the things you need to do.
If you aren’t visible on search results, fewer customers know about you, you sell less, and your growth slows down. At the same time, your competitors will increase sales and profits.
We hope this article helped you gain deeper insight into the e-commerce world. If you already have an eCommerce business, check out our eCommerce automation app – Atom8 to boost revenue passively!