How do online shopping websites make a profit?
Question asked by: mrquestion
Asked on: 31 Mar 2008
Online shopping sites make a profit by selling items for more money than they pay for them.
This is called a margin and it is how all shops work.
The key is that they need to make enough money to not only pay for the products but also staff costs and the website costs etc, this markup or margin therefore needs to be able to sustain this based on the volume of sales.
The less sales there are the more markup there needs to be in order to pay for the costs, or the more expensive the product needs to be.
By: knowitall
Replied at: 31 Mar 2008
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