Let’s start by looking at the cost involved with this type of set up. If you can do it yourself, you’re looking at your basic hosting and domain fees plus a few SEO and e-commerce plug-ins (probably no more than £100 each). OR, an agency like Keyk can fully set this type of website up for as little as £7,000.
Compared to the free-ness of the previous option, this might seem quite steep. But, remember the percentage of sale isn’t going to sting you anywhere near as much – usually, around 2.9% per transaction when using something like Paypal or card payment plug-ins. And of course, your site is being built by an expert. Somebody that understands conversion and other factors vital to success.
So, over the course of that first year – we’ll use my friend as an example again. £60,000 turnover, minus the £7,000 start-up cost, around £25 a month for running the site. That leaves £50,700. The fees on transactions would take off around £1,500 for year one meaning that if she’d have taken my advice and backed herself she’d be sitting on £49,200 profit as opposed to £40,000.
That’s £9,200 more without selling even one extra product.
Now of course there’s slightly more to it because this disregards marketing costs – which in the interest of honesty, you CANNOT do. But believe me, if she was to spend even half of that extra profit on good marketing campaigns – then her profit margin would be even bigger.
Whilst we’re on the subject, this model also allows for far more versatile marketing. As it’s your site that you own, the world’s your oyster.
SEO? Yeah, you’ll need it. Content Marketing? You bet. Social Media? It’s your site do what you want. Google Ads? Now you’re talking serious growth. The options are limitless, contact a marketing agency and get an expert to help and you can achieve things that simply aren’t possible using another businesses platform.