Are ecommerce businesses profitable?

Ecommerce businesses can be profitable when the business is run well. Ecommerce has big players and small players who are all profitable. So it’s not the size of the business or the invested amounts but strategy that brings success.

In Zimbabwe, ecommerce businesses have not done well generally. Those who started the businesses usually park them or change direction after several months of failed efforts. To make your ecommerce business profitable, owners must not think that they can create ecommerce markets. Generally, with ecommerce, business owners or their marketers must find markets first then offer them a product in an irresistible way. 

Businesses make profits when they generate more money than they spend to provide the service or product. So depending on the business model the ecommerce project is running on, unprofitability can be caused by either not making enough sales, too small margins or bad deals with suppliers of the products on sale.

See global ecommerce reports here. See more on why do ecommerce business in Africa fail?