February 17, 2025
Ramin Popal
Starting an online store is exciting. You create your entity, sell products you love, and get to call the shots. But after the initial thrill, you might wonder: What will my eCommerce business earn? When it comes to how much the average eCommerce business makes, there's no one-size-fits-all answer.
The number can vary significantly depending on whom you ask. Almost any answer you come across will leave you with more questions than before. For example, what metrics are we using to measure this number? How does the average eCommerce business make money? How to find a supplier for your product? And what does this mean for my online store?
This post will help you answer these questions to give you a clearer picture of how much the average eCommerce business makes.
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eCommerce, or electronic commerce, refers to the buying and selling goods or services over the Internet. It eliminates the need for a physical storefront, allowing businesses to operate digitally and reach customers worldwide. Transactions occur through digital platforms, independent websites, online marketplaces (Amazon, eBay, Etsy), or social commerce (Facebook Shops, Instagram Shopping).
A traditional retail store in a local city may rely on foot traffic for sales, whereas an eCommerce business can instantly reach customers across multiple countries through targeted online advertising. This global reach significantly enhances revenue potential.
eCommerce has experienced explosive growth over the past decade, accelerated by technological advancements, mobile commerce, and changes in consumer shopping behavior. The COVID-19 pandemic further cemented eCommerce as a dominant retail force, pushing more businesses and consumers online.
The continuous rise in eCommerce revenue indicates an increasing consumer preference for online shopping—more people shopping online, more significant opportunities for eCommerce entrepreneurs to tap into a growing customer base. The shift to digital shopping is not just a trend but a long-term industry transformation, making it one of the most lucrative businesses to start today.
Amazon, which started as an online bookstore, capitalized on the growing eCommerce wave and became the world’s largest online retailer, with $138.9 billion in sales in 2023 alone. This proves the potential of eCommerce when executed effectively.
The appeal of eCommerce lies in its flexibility, low barriers to entry, and potential for high profits. Entrepreneurs choose eCommerce for various reasons, including financial independence, passive income generation, and the ability to work from anywhere.
A single mom started a dropshipping store selling eco-friendly kitchenware with just $500 investment for website setup and advertising. Within six months, she scaled her store to $15,000 per month by leveraging Facebook and TikTok ads.
Not all eCommerce businesses generate the same revenue. Several factors determine how much a company can make, including industry selection, pricing strategies, traffic sources, and customer acquisition.
Industry/Niche Selection
Business Model
Traffic & Marketing Strategy
Customer Acquisition & Retention
Product Pricing & Average Order Value (AOV)
Revenue in eCommerce varies significantly by industry. Some sectors pull in high revenue but have lower profit margins, while others generate moderate sales with high profit margins. Below is a breakdown of various industries and their average revenue potential.
One of the largest and most competitive eCommerce sectors, generating over $1.02 trillion in 2024 globally. There’s high demand, particularly in fast fashion, streetwear, luxury brands, and sustainable fashion. Profit margins range between 30% and 60%, depending on sourcing and branding. Key revenue factors include brand identity, influencer partnerships, and customer loyalty. For example, a private-label fashion store with good branding can generate $20,000 to $100,000 monthly.
This category consists of high-ticket items. Accordingly, stores earn more revenue per sale, but profit margins are lower (10-20%) due to competition and sourcing costs. Popular categories include smartphones, gaming accessories, and smart home devices. Electronics eCommerce requires effective supplier management and strong customer service. For instance, an electronics store selling phone accessories can generate over $50,000 per month but must reinvest in marketing to maintain profitability.
This segment is one of the fastest-growing eCommerce sectors, expected to exceed $500 billion by 2027. It has high repeat-purchase potential, making customer lifetime value (LTV) an essential factor. Profit margins range between 40-70%, especially in organic skincare and niche beauty products. For example, a small skincare brand selling organic beauty products can start at $5,000 monthly and scale to $50,000+ per month with the right marketing strategy.
This category is the fastest-growing eCommerce segment in 2024, with 17.2% YoY growth. It’s a high-volume industry, but profit margins are lower (10-30%) due to packaging, shipping, and storage requirements—this segment best suits subscription models (meal kits, gourmet snacks, specialty coffee). For example, a gourmet coffee eCommerce business can generate $10,000+ per month, with subscriptions boosting long-term revenue.
This steady industry has large ticket sales but slower purchase cycles. Profit margins vary (25-50%), depending on product type and shipping logistics. There’s a high potential for customized and made-to-order items. For instance, a mid-sized home décor eCommerce store can generate $50,000 to $150,000 monthly.
Not all eCommerce businesses operate the same way. The business model determines how much revenue and profit you can expect.
This model requires a low upfront investment, as sellers don’t hold inventory. Profit margins are lower (10-30%) since products are sourced from third-party suppliers. Dropshipping relies heavily on paid advertising for traffic, which increases customer acquisition costs. For example, a successful dropshipping store can make $10,000 to $100,000 monthly, depending on traffic and niche.
This model has higher costs due to manufacturing and branding but higher profit margins (40-70%). Private labeling requires investment in product development and marketing. For example, a well-branded supplement business can generate $50,000 to $500,000 monthly with strong brand recognition.
This model focuses on selling large quantities to businesses or retailers. While lower margins (10-20%) prevail, high volume can compensate for it. For example, a wholesale electronics store can generate $200,000+ monthly but requires strong supply chain management.
This low-risk model needs no inventory. Profit margins are moderate (20-50%), depending on pricing. For instance, a successful print-on-demand store selling custom t-shirts can make $5,000 to $50,000 monthly, scaling with better marketing.
This recurring revenue model ensures predictable monthly income. It works well for industries like skincare, food, and digital services. For example, a subscription box business can generate $20,000+ monthly with only a few hundred customers.
Several key factors influence how much an eCommerce business makes. Entrepreneurs must optimize these areas to maximize revenue and profit.
The higher the conversion rate, the more sales a store makes per visitor. Industry-standard conversion rates include:
For example, if a store gets 10,000 visitors per month with a 2% conversion rate, that’s 200 monthly sales.
CAC is the cost of acquiring one new customer (ads, promotions). LTV is the total revenue a customer generates over time. Balancing CAC and LTV is crucial—if it costs $30 to acquire a customer but their LTV is $200, that’s a profitable business model.
AOV measures the average spending per customer per transaction. A higher AOV means more revenue without needing more customers. Upselling & Bundles: Encouraging customers to buy related products increases revenue per order. For example, a skincare store selling a cleanser for $20 can increase AOV to $50+ by bundling it with a toner and moisturizer.
Organic Traffic (SEO, content marketing) is a long-term, cost-effective strategy. Paid Ads (Google, Facebook, TikTok) provide faster results but require an ongoing budget. Email Marketing is one of the highest ROI methods (40x return on investment).
At AI Store Builder, we create a complete Shopify store for you in under 10 minutes. We include 20 trending products, trusted suppliers, and a dropshipping course that others charge thousands for. Plus, you get live support calls and community access. Skip the headaches of store setup, product research, and supplier hunting - we handle it all so you can focus on growing your business. Get your store built for you in less than 10 minutes today!
When you have a product idea, you must thoroughly research your target market before rushing to find a supplier. This means determining your ideal customers, what they want, and how your product can meet their needs. Next, look for existing businesses selling similar products. This will help you identify potential gaps in the market to target and uncover valuable information to help you create your product.
For example, you can discover customer reviews to learn about common complaints and product features buyers desire. This information will be critical in helping you find a supplier for your product, as you can use it to communicate your expectations and narrow your search to businesses that can meet them.
Once you understand your market well, you can start finding a supplier for your product. While the steps may vary depending on your specific business model and the type of product you want to sell, here’s a general outline of finding a supplier.
Before searching for suppliers, it’s essential to identify your specific needs. This includes determining the exact type of product you want to sell and any customizations or particular features you want. Next, outline your goals and expectations for working with a supplier, including target price, order volume, and production timelines. This will help you target the right businesses from the start.
You can begin your search once you know what you’re looking for in a product and a supplier. Start by looking for businesses that make or supply the exact product you want to sell. You can uncover potential suppliers by:
After compiling a list of potential suppliers, narrow your search by evaluating their operations. Look for existing customer reviews and testimonials to get an idea of their reputation and the quality of their products. Check for red flags, such as consistent complaints about product quality or order fulfillment. Next, assess their website and product listings. This can give you valuable insight into their operations, such as how organized they are and whether they appear to have a large inventory of products.
Once you've identified a potential supplier, contact them for more information. Prepare a list of questions to ask to ensure they can meet your needs. For example, you might inquire about:
Before making any commitments, ordering a sample product is always a good idea. This allows you to assess the quality of the supplier’s products and determine whether they’ll meet your customers’ expectations. If the supplier offers product customization, you can also request a sample of the modified product to ensure it aligns with your vision.
When you’re satisfied with the quality of the supplier’s products, you can move forward with making a plan and placing your first order. Work on establishing clear guidelines for communication and order fulfillment. For example, you might create a spreadsheet to track progress and assign responsible parties for each process step. Then, place your initial order and get ready to launch your eCommerce business.
At AI Store Builder, we create a complete Shopify store for you in under 10 minutes. We include 20 trending products, trusted suppliers, and a dropshipping course that others charge thousands for. Plus, you get live support calls and community access. Skip the headaches of store setup, product research, and supplier hunting - we handle it all so you can focus on growing your business. Get your store built for you in less than 10 minutes today!
Having an online store isn’t enough. Traffic and conversions determine success. Here’s how eCommerce brands can attract customers and drive consistent revenue.
When starting a business, no one can predict the future. But in 2023, we can look at the average eCommerce business earnings and guess what an online store might make in its first year. According to a 2022 report by Shopify, the average eCommerce store makes about $80,000 in revenue in its first year.
This number varies significantly by niche. For example, stores that sell in the music niche average $23,000 in revenue. Conversely, stores that sell in the arts and crafts niche average $151,000 in their first year. The more you know about how much eCommerce stores make, the better you’ll be prepared for your business.
At AI Store Builder, we create a complete Shopify store for you in under 10 minutes. We include 20 trending products, trusted suppliers, and a dropshipping course that others charge thousands for. Plus, you get live support calls and community access. Skip the headaches of store setup, product research, and supplier hunting - we handle it all so you can focus on growing your business. Get your store built for you in less than 10 minutes today!
Get your free store in less than 10 minutes today
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