What is a good profit margin of a product in a small business?
Asked 3 years ago
I want to find out the profitability of specific items in my store, but I am unsure of where the ratio should fall for a good profit margin. I know that this varies depending on the size of the business, but what should the profit margin be for a small e-commerce business in particular?
Isidro Mcguire
Saturday, October 16, 2021
A good profit margin depends on various factors like the selling price of goods and the size of the business. However, for a small e-commerce business, a good profit margin is above 20% and depends on whether sales are high enough compared to the costs.
Remember, that at the root of it all is having the correct product to sell to the correct market, at the correct price. Optimize those 3 elements, and you're well on your way to excellent profit margins.
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