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Profitability rating of Internet businesses

For Personal use:

What kind of seller are you? Well, the first ones are sellers that are interested in selling online, irrespective of the product category.

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Decision to sell online comes first, product comes second. Drop-shippers, resellers fall under this category.

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While the second category of online sellers are the ones that are passionate about selling their product. Here, the product is born first, decision to sell online happens as the business progresses. Why this contributes to profitability?

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Because this factor affects realistic profit figure, how much can you play around with product pricing, the extent one can stretch to achieve profitability and the level of competition a seller will face. Is it a hobby?

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Side business? I still worked full time and then went home and worked more on my business.

Determine The True Cost Of Production

I would wake up at 7am and go to bed at around 3am. This means you have complete control over order fulfilment and payments. But it also means that you would find it difficult to match the volume a marketplace is able to provide.

Indian ecommerce companies like FlipkartShopclueseBay, and Snapdeal are getting heavily criticized by online sellers. And rightfully so. Are you providing value?

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An online seller shared on Quora how by investing in good profitability rating of Internet businesses, SEO keywords marketing and opting for better packaging material by reducing profit margins earned her a top spot in marketplace search results. Raise your prices the moment net in hand is less than the three costs.

It is just like any other business, any other industry, where you need to take risks and learn on the job. It is wrong to blame the medium as even in the offline retail world, not all fail or succeed.

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Maths is boring but very helpful. Sit at regular intervals not just at the end of FY and calculate all the costs so find the source of loss and eliminate it.

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Online sellers, do you think selling online is a profitable venture? Do you want to share your online selling experience?

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Please leave your helpful comments below.