It's always difficult to answer budding ecommerce entrepreneurs when they ask: "How much money can I make with an ecommerce store?"
The reason for this is simple: While there's no guarantee to make money, there's also no limit on the amount of money you'll be able to make. It doesn't matter whether you're looking to earn $10,000+ every month, or you're just trying to save up some extra cash for a rainy day. As long as you're running your ecommerce business effectively, you'll be able to reach whatever financial goals you set for yourself.
By 2027, about 23% of total retail sales will happen online. This growth demonstrates the significant opportunities available for entrepreneurs entering the online retail marketplace. In this article, get practical tips on how to start making sales with your ecommerce business, discover how much traffic you need to drive conversions, and learn how to calculate your profits.
Let's get started.
Generating Traffic Is Essential for a Successful Ecommerce Store
It's critical that you're able to drive a large amount of traffic to your online store. When your ecommerce business has a high level of traffic, there are plenty of potential customers who are visiting your store and viewing your products. If your ecommerce store is selling great products at an affordable price point, then it's only a matter of time until you start generating both traffic and revenue.
Unfortunately, there's no guarantee that you'll generate traffic to your online store straight away. You'll likely need to take advantage of different marketing channels to draw traffic to your store. Before making a decision about which marketing channels are the best fit for your ecommerce business, it's important that you're aware of the amount of traffic which you'll need to generate to reach your financial goals.
Understanding How Much Traffic You Need
The amount of traffic which you'll need to generate for your ecommerce store will differ depending on the amount of money that you want to earn.
You can easily find out the amount of traffic which you'll need to generate by using this Dropshipping Traffic Calculator. Simply enter the amount you want to earn and the number of days to earn it. The tool will calculate the number of visitors you need to attract and the orders you need to generate. Here's an overview of how the tool works:
Note that the calculations from this example assume the following:
- The average conversion rate for an ecommerce business is 2%. This means that for every 100 people who visit your store, you can expect 2 people to make an order.
- The average order value for ecommerce stores is $45.
- You will be using a 2x margin. This means you'll be charging your customers double the price that you purchase the products for.
- The average cost to acquire a user is $0.35. This statistic is based on ecommerce businesses using Facebook ads in the US.
Once you have an understanding of the amount of traffic which you're going to need to reach your financial goals, you'll need to think about how you'll generate traffic to your online store.
How to Generate Traffic Through Marketing Strategies
The fastest way to generate traffic to your online store is through online marketing campaigns. There are a variety of different marketing channels which you can use to draw potential customers to your ecommerce store. Each marketing channel has unique benefits and works well for both multi-product and single product businesses.
Here are the different marketing channels which can help you drive potential customers to your website.
PPC Marketing
PPC marketing, or pay-per-click marketing, involves businesses paying for a better chance to generate traffic for their online stores. If you've ever noticed sponsored products at the top of Google search results or an Instagram post with 'Sponsored' next to it, then you've already seen PPC marketing in action. Successful ecommerce stores typically have some PPC marketing campaigns running, as it's a great way to make short-term sales.
PPC is a great marketing strategy for generating traffic, increasing awareness for your brand, and ultimately increasing the number of sales you make. You'll receive results from your campaigns quickly and you'll only incur marketing fees when somebody clicks on your advertisement.
There are three main platforms which you can use for PPC marketing which are Google, Bing, and Meta / Facebook. If you choose Google or Bing for your PPC marketing, you'll be able to research the number of people who are searching for what you are posting, which will help to make your ecommerce stores advertisements more effective. The downside of using Google and Bing is that you won't have exact information about your target audience, like their age, gender, or interests.
If you're using Facebook for your PPC marketing then you will be able to obtain information about your audience's age, gender, and interests, but you don't know how popular your advertisements will be.
If you're interested in trying out PPC advertising, then check out this Google AdWords guide by Neil Patel and Buffer's Facebook Marketing guide for more information on how to get started.
Email Marketing
Email can often be overlooked as an important marketing channel, but it is a platform that most people engage with daily. Furthermore, email marketing can drive a return on investment of up to $36 to every $1 spent, which is way higher than PPC.
Devising a great email strategy can turn into a sales channel that pushes existing and new traffic to your website time and time again. A good example of a campaign would be one that includes free informational content, giveaways, discounts or sales codes, referral coupon codes, and exclusive invites to preview new products before they're made public. Helm Boots uses a sales discount to entice website visitors to sign up to their email list.
Nurturing your subscribers is important in order to rely on your audience to increase traffic over time. This could mean sending out a bi-weekly email blast, so your audience knows when to expect your email. To make your emails more relevant, segment your audience by criteria like demographics and psychographics, then tailor your content to their specific needs. Why will this prompt more traffic to your website? By giving your audience personalized content, you can develop social proof cases where your audience is comfortable sharing your products or services with their close-knit groups.
Social Media Marketing
Social media can be a great marketing channel to promote your business and generate traffic for your website without needing to spend money or create new content. Sharing blog articles, products and services, positive reviews, company news, and how-to or behind the scenes videos on social media can help you create a community of avid followers who will share your content with others to help you grow your business.
Social media can also be a great customer service tool also by allowing customers to contact you via online chat. Many chat applications now allow businesses to use their existing social media channels, such as Facebook Messenger and WhatsApp, for customer service and sales. These apps offer features that can automate tasks like sales qualification, product promotion, and abandoned cart reminders, helping to improve online profits and drive website traffic.
Search Engine Marketing
SEO, or Search Engine Optimization, is necessary for every company to undertake regardless of their size. It is necessary as it is the optimum way to increase traffic hugely to your website without spending money on advertising. SEO, in its essence, is optimizing certain elements of your website so that search engines will rank you as close to the top of the search engine results page when users search for a group of keywords. If you're just starting out, it's best to spend time optimizing on-page elements like your product descriptions, meta titles and descriptions, and images. But as your website grows in reputation, off-page SEO like link building, and social media can be a great way to boost your search engine rankings and increase your website traffic.
Low-Cost Marketing Channels
If the thought of investing money into your marketing efforts sounds like a daunting prospect, then you can take advantage of low-cost marketing channels. Low-cost marketing channels usually take longer to yield results than PPC marketing, so it'll take longer to draw the necessary traffic to your online store, but if done effectively they can offer a cost-effective way to draw traffic to your ecommerce store.
Content marketing is a popular low-cost marketing strategy which you can use to generate traffic to your online store. You can create a blog and publish insightful SEO content which is related to your products to increase your organic search rankings and brand authority. You can use social media for your ecommerce business to alert your audience about new products, flash sales, or announcements related to your ecommerce store.
There are also discussion platforms, like Reddit, which you can use to generate more traffic for your online store. Reddit has a wide variety of niche-specific categories which are known as 'Subreddits' that you can use to engage with other users who are interested in your products.
If you've created any content marketing resources, then you can also share them on Reddit, providing that they're relevant to an ongoing discussion. As you already know that these users are interested in your niche, it's a great way to draw high-potential customers to your online store whilst creating awareness for your brand.
Building a Successful Ecommerce Foundation
Driving traffic to your online store is just the first step. Your digital storefront needs to provide shoppers with a seamless, trustworthy experience that rivals physical shopping. Here are key elements to focus on when establishing your ecommerce foundation.
1. Prioritize exceptional product imagery. Since customers cannot physically handle your merchandise, crystal-clear photos from multiple angles become essential. Pair these with comprehensive product details that answer common questions and eliminate uncertainty. This approach reduces returns and builds buyer confidence.
2. Mobile optimization has become non-negotiable. Many consumers browse and purchase through their phones, so your site must function flawlessly across all devices. Test every page and purchase process on various screen sizes to ensure smooth navigation.
3. Payment flexibility matters significantly for conversion rates. Offering various payment methods — from credit cards to digital wallets — removes barriers that might prevent sales. A secure, familiar checkout process builds trust and reduces cart abandonment.
4. Search engine visibility drives organic traffic growth. Optimize your content, product descriptions, and site structure to rank well for relevant searches. This long-term investment continues generating visitors without ongoing advertising costs.
5. Customer feedback serves as powerful social validation. Encourage satisfied buyers to leave reviews, as these testimonials influence purchasing decisions for future customers. Display these prominently throughout your store.
6. Leverage analytics to understand visitor behavior. Data reveals which products perform well, where customers exit your site, and which marketing efforts generate the best returns. Use these insights to continuously improve your store's performance.
Working Out Your Profits
When your ecommerce business starts to make sales, it's important that you can work out how much of the money will equal profit for your business. This simple Profit Margin Calculator helps you determine the right price for your products so that you can make more profit.
How is Profit Margin Calculated?
Profit Margin is calculated by finding your net profit as a percentage of your revenue. In simple terms, this is done by dividing your net profit by your net sales. For example, if you sell 15 products for a net revenue of $400, but the cost to source and market your product, coupled with business costs, equals $350, then your profit margin is (400-350)/400. This means your profit margin is 12.5%
Profit Margin = Gross Profit (Total Sales – Total Expenses) / Total Sales
It's Time to Start Earning Money
There is no doubt that ecommerce and dropshipping is profitable. And now you're equipped with the tools and knowledge which you need to reach your financial goals — it's time to start earning money. Sure that you test your marketing campaigns and your product prices, it'll really help you to grow your ecommerce store. You may find that your Google Ads campaigns aren't successful, so you can then try out Facebook campaigns. You can also try adjusting the pricing of your products — if you find that your customers are willing to pay more, then you'll be able to spend more money on your marketing efforts.
Consider adopting multiple sales channels to maximize your reach. Many successful businesses today combine online stores with social media selling, marketplaces, and even physical locations. This multichannel approach helps you connect with customers wherever they prefer to shop, ultimately increasing your revenue potential.