eCommerce MasterPlan 1.8 by Chloë Thomas

Author:Chloë Thomas
Language: eng
Format: epub
Publisher: Kernu Publishing
Published: 2013-06-23T16:00:00+00:00

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Your overheads for the year are basically fixed, so you need to generate a certain volume of orders to cover them. For example:

In this example, you would need to generate 5,000 orders to break even. It will only be from the 5,001st order that you see a profit (assuming the margin holds and the overheads come in on budget). You can also see here that the sales required to cover the overheads are a LOT higher value than the overheads themselves – that’s because of the cost of buying in the products.

From this, you can now work out how many sales you’ll need to drive to make the profit you want. If you want a £50,000 profit, then:

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