Business Idea

Start An Ecommerce Platform

About

Starting an ecommerce platform requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell ecommerce platform, or selling ecommerce platform online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$2.72T
revenue (monthly)
$155K
starting costs
$21K
gross margin
83%
time to build
10 months
growth
Word of mouth
business model
Advertising
time investment
Full time

About

Starting an ecommerce platform requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell ecommerce platform, or selling ecommerce platform online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$2.72T
revenue (monthly)
$155K
starting costs
$21K
gross margin
83%

 

time to build
10 months
growth
Word of mouth
business model
Advertising
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $35 $3,250
Equipment & Supply Expenses $500 $5,000
App Creation Costs $1,099 $20,099
Training & Education Expenses $0 $1,000
Software Expenses $150 $2,844
Advertising & Marketing Costs $0 $7,500
Website Costs $17 $275
Other Expenses $0 $300
Total Startup Costs $1,801 $40,268

Successful Businesses

Business URL Rank
Shopify myshopify.com #28
WooCommerce woocommerce.com #3,454
Bonanza bonanza.com #4,463
Flutterwave flutterwave.com #9,609
ChannelAdvisor channeladvisor.com #9,723
2Checkout: Online Payment Processing 2checkout.com #10,466
Ecommerce Platforms ecommerce-platforms.com #10,947
Ecommerce Website Store & Shopping Cart Software volusion.com #11,459
3dcart 3dcart.com #12,106
Ecomdash ecomdash.com #12,756
Magento magento.com #15,517

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Ability to start your business from home It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
Rewarding work Starting a ecommerce platform can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Scalable With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
No overhead costs To get your ecommerce platform started, there are no costs associated with overhead, storage, packaging, etc. This will save you a lot of time and money!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
Cons Description
Crowded Space Competition is high when it comes to your ecommerce platform, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
Security Issues With any Saas business, data loss and security issues may arise throughout your process of building your product. It's critical that you understand exactly what you're responsible for and how to avoid potential issues down the road.
Lack of benefits With a ecommerce platform, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming.
Isolation Often times, as a ecommerce platform, you typically work alone and do not have much face-to-face interaction with other team members.
Taxes As a ecommerce platform, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
No safety net Typically, as a ecommerce platform, you do not receive a consistent pay-check and instead earn money based on your transactions each month. During the slow periods, you typically take away less since the job is based on commission. It's important to budget accordingly for the slow times.