Ecommerce Solution Agency

How Profitable Is An Ecommerce Solution Agency? (Updated for 2024)

Pat Walls

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Updated: September 13th, 2024

How Profitable Is An Ecommerce Solution Agency? (Updated for 2024)

So you want to start an ecommerce solution agency?

And the first question that came to your mind was, “well, are ecommerce solution agencies actually profitable?”

With a market size of $2.72T - there’s plenty of business to go around.

Especially considering:

You could start a ecommerce solution agency with as low as $500
Based on our data, ecommerce solution agencies generate an average of $984K per year
You could see gross margins as high as 64% with ecommerce solution agencies

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a ecommerce solution agency.

Let’s dive in!

Is an ecommerce solution agency profitable?

Yes, an ecommerce solution agency is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $984K per year with an estimated gross margin of 90%, you could expect to recover your investment within 7 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your ecommerce solution agency.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your ecommerce solution agency is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is an ecommerce solution agency worth it?

If you’re wondering if a ecommerce solution agency is worth it, the answer is a big YES. With ecommerce solution agencies, you have the potential to earn $984K per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $2.72T, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a ecommerce solution agency to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful ecommerce solution agencies case studies.

Examples Of Profitable Ecommerce Solution Agencies

Here are a few examples of profitable ecommerce solution agencies, and a few more details about them:

1. Envision ($360K/year)

Leighton Taylor, founder of eCommerce marketing agency Envision, came up with the idea for his business while freelancing in web design and development. He noticed the explosive growth of Shopify as the eCommerce platform of choice and decided to specialize in Shopify-related services. Through clear communication, punctuality, and early success with content marketing, Envision has attracted and retained clients, earning approximately $30k/month in revenue.

Is it profitable? Yes
How much money it makes: $360K/year
How much did it cost to start: $0

How I Started A $30K/Month Conversion-Focused Shopify Development Agency

Founder Leighton Taylor shares how his eCommerce marketing agency for Shopify has grown to approximately $30k/month, working with about 350 eCommerce brands and an ideal client with annual revenue from $1-10 million, while focusing on clear communication, punctuality and content marketing through a podcast.

Read this case study

Read by 7,610 founders

2. Antropy ($720K/year)

Paul Feakins' childhood fascination with computers led him to launch Antropy, an e-commerce web agency. Starting alone in his bedroom, he grew the company to cater to clients like The Mirror Group and Coca Cola, achieving record monthly profits of over £30k.

Is it profitable? Yes
What's the gross margin? 64%
How much money it makes: $720K/year
How much did it cost to start: $500

How I Scaled My Ecommerce Agency to $38K/Month

This case study is about a UK-based e-commerce web agency that specializes in building fast and high-converting online shops using open source software, with clients ranging from startups to well-known companies like The Mirror Group, UCL, and Coca Cola, and has recently achieved a record monthly profit of over £30k.

Read this case study

Read by 1,683 founders

3. Prolific Zone ($1.66M/year)

Quin Amorim, the founder of Prolific Zone, came up with the idea for his eCommerce agency after successfully selling products online for over 25 years. He realized his passion for creating and launching products and brands online and decided to help others do the same. With a team of 18 people and a customer retention rate of over 80%, Prolific Zone generates an impressive average of $140K per month without spending a single dollar on advertising.

Is it profitable? Yes
How much money it makes: $1.66M/year
How much did it cost to start: $3K

From Selling On eBay To Starting A $1.6M/Year eCommerce Agency

Prolific Zone is an eCommerce agency founded by Quin Amorim that has experienced significant growth, with a team of 18 people, a customer retention rate of over 80%, and generating an average of $140K per month helping brands sell their products internationally through Amazon and Walmart.

Read this case study

Read by 3,954 founders

Learn more about starting an ecommerce solution agency:

Where to start?

-> How much does it cost to start an ecommerce solution agency?
-> Pros and cons of an ecommerce solution agency

Need inspiration?

-> Other ecommerce solution agency success stories
-> Marketing ideas for an ecommerce solution agency

Other resources

How much can you make with an ecommerce solution agency?

With a ecommerce solution agency, you can make an average of $984K revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $500. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a ecommerce solution agency make a week?

Based on our data, average weekly revenue for a ecommerce solution agency ranges around $20.5K. As such, you could see monthly revenues of $82K.

To know if your ecommerce solution agency achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your ecommerce solution agency.

How much do ecommerce solution agencies owners make?

The income of an ecommerce solution agency owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established ecommerce solution agency is about $20.5K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as an ecommerce solution agency owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Ecommerce Solution Agency Profit Margins

Generally speaking, an ecommerce solution agency can expect profit margin of around 90%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of an ecommerce solution agency, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, ecommerce solution agency owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, ecommerce solution agency owners can ensure long-term sustainability and profitability for their business.

Ecommerce solution agency owner salary

The salary of an ecommerce solution agency owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established ecommerce solution agency, in a prime position, might see an average weekly salary around the ballpark of $18.4K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a ecommerce solution agency may be a promising business to start - but the success of your ecommerce solution agency mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable ecommerce solution agency.

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Starting An Ecommerce Solution Agency: Everything You Need To Know

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