Factors That Affect the Profitability of Online Stores

Although many entrepreneurs rush to open online stores with an aim of making money online, only those who understand certain key business elements succeed. In order for you to run a successful online store, you must make sales by establishing a good relationship with your clients. If you have an online store that has stagnated without any growth or you are planning to start one, learn about the following factors that might be affecting your profitability.

Your niche

Remember that as a buyer’s behavior continues to shift to online shopping, more and more entrepreneurs are also moving their businesses online–this can mean some stiff competition. In order for you to run a profitable online store, you need to do your market research well and identify specific niches and products which customers are looking for online. The less competitive the niche is, the more profitable your online store is likely to be.

Your customer service

How do you treat your clients? Are you able to respond to their questions and offer more information about your products when asked? For your online business to succeed, you must establish a good relationship with your customers and be ready to offer unmatched customer service.


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If you don’t treat your clients well, they will lose trust in your business and they will never buy from your store again. Also, if your store has low ratings, it will also discourage new buyers from purchasing your items and this will negatively affect your sales and overall profits.

Your marketing strategy

For you to make an online sale, you must market your products to reach the right audience. One of the best marketing strategies that you can implement in your online store is doing targeted marketing. Here is where you identify who are your target customers first and then proceed to make promotions and ads targeting specific groups of people or certain regions if your products are localized.

Once you have identified your target demographic, you can use social media platforms such as Facebook, Pinterest, Twitter, Instagram, and influencers to push your online products to the targeted market.

Product pricing

The way you price your products also has a great impact on the profitability of your online store. For instance, if you price your products too low, you are going to make less money and some customers might even doubt your product quality. On the other hand, if you price your products too high, they will be out of reach by many interested buyers.

Therefore, ensure you research the pricing of similar products so that you offer a good price that is affordable and also profitable.


How long does it take to deliver an order to your customers? The shipment process and delivery time also plays a big role in determining whether your online Shopify store will thrive or not. In most cases, the majority of customers prefer to work with online sellers who promise and deliver their orders within a short period of time. If you are always late in shipping client orders, they will probably not choose your store next time they make an online purchase.

Osho Garg

About Author
Osho is Tech blogger. He contributes to the Blogging, Gadgets, Social Media and Tech News section on TecheHow.