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What is a good profit margin for an online retailer?

Asked 2 years ago

Hey ya'll. What is the average profit margin of an e-commerce clothing store? I started a start a dropshipping store, and fashion is my passion. My store has been open for almost a year, and the profit margin is currently sitting at 3%. Is this good or bad?

Declan Warner

Wednesday, April 20, 2022

A good profit margin differs from industry to industry and product to product. What's good for one industry might be considered unsuitable for yours. Hence it is crucial to consider the type of product and industry before analyzing your profit margin. It is vital to consider the best products to sell online in each industry.

When it comes to a fashion and clothing store, the profit margin usually lies between 4-13%, according to industry experts. Profits in online clothing stores are generally lower compared to all costs. Several clothing stores prefer to sell a high volume of goods or use other strategies like simultaneously selling goods like jewelry with a high markup.

Jolina Regin

Wednesday, October 26, 2022

The fashion and retail business is a competitive industry, its average profit margin is around 4-11%. For a fashion dropshipping store that is one year old, a 3% profit margin is not bad. Try and improve your profit margin to 4% or even 5% in the next years by selling more, reducing operating costs, and increasing prices.

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