E-commerce financial model
E-commerce is often more costly than expected. The high amount of competition makes it crucial for you to ensure your business plan makes financial sense, and that your costs don’t exceed your revenues.
While this model isn’t meant to replace a complete financial analysis, it should give you a good idea of whether your e-commerce opportunity is worth pursuing.
The model will help you take your expected revenue and calculate your margins against your associated costs, such as shipping, marketing expenses and online payment fees. In the end, you’ll get a clearer idea of how much profit your online store can generate.
This tool will help you:
- Calculate your expected gross margin and operating margin
- Identify recurring annual costs
- Ensure your costs don’t exceed your revenue target
- Determine if your overall e-commerce plan makes sense financially