A typical online store worldwide that's still open after three years brings in $11.1k a month ($134k a year) and keeps about $14 of every $100. That leaves about $18.7k a year.
The top 10% make more than $45.6k a month. The bottom 10% make under $2.7k.
Thinking of starting an online store?
- Typical cost to start
- $7.4k
- Still open after 3 years
- 44%
Monthly revenue by year
Estimate · For businesses still trading at each point.
| Year | Bottom 25% | Typical | Top 25% | Top 10% |
|---|---|---|---|---|
| Year 1 | $2,000 | $4,700 | $10,900 | $23,200 |
| Year 3 | $5,300 | $11,100 | $23,400 | $45,600 |
| Year 5 | $6,700 | $14,500 | $31,400 | $63,200 |
Year 3 monthly revenue
How much does it cost to start?
Typical cost to start: $7,400.
| Item | Typical cost |
|---|---|
| Initial inventory | $3,900 |
| Brand, photos & packaging | $1,400 |
| Shopify apps & theme | $600 |
| Launch ads | $1,300 |
| Samples | $300 |
Where the money goes
Estimate · Share of revenue for a typical business in year three.
How many survive?
Estimate · 44% are still trading after three years, and 37% after five. These are the reasons owners gave for closing:
What the successful ones do
- Got 40%+ of revenue from repeat customers
- Built an email list before paying for ads
- Sold wholesale to shops as a second channel
Verified online stores on HumDays
How Wolkje gets 46% of sales from repeat customers and switches ads off in winter
Wolkje sells merino socks online and gets 46% of revenue from returning customers, so it can switch paid ads off for the winter without sales collapsing. Revenue is up 34% on last year.
Oak & Ash Print Shop
“Two-thirds of sales land in November and December. Cash planning is everything.”
Questions people ask
Is an online store profitable?
Estimate · Usually, if it survives. A typical online store worldwide keeps about $14 of every $100 in sales by year three, which on typical sales leaves about $18.7k a year. 56% close within three years.
How much does it cost to start an online store?
Estimate · The typical cost to start is $7.4k. The biggest items are initial inventory and brand, photos & packaging.
How long until an online store makes a profit?
Estimate · A typical business had its first profitable month after 7 months. Side-hustle starts took about two months longer.
Why do online stores fail?
Estimate · The most common reason owners give is “ad costs above customer value” (37% of closures), followed by “cash tied up in stock” (21%).
Is an online store seasonal?
Estimate · November–December peak. Survivors plan cash around the quiet months.
Ask online store owners
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