Digital Marketing, Web 2.0

How many visitors will be needed for 100.000 CHF of annual Revenue? Secret revealed...

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Any business plan for an E-shop should admit this equation and know in advance the desired objective of the launch of the store.

If we can see things in reverse by setting a turnover to achieve in the commercial year, for example 100 000 CHF and that our average basket is 55CHF (It will be necessary to note and enter the difference between turnover and profit if it is not yet done).

For this, you will need to mathematically reach 100,000/55 = 1818 sales in the year. If we divide by 365 days (and yes the advantage of e-commerce is that it is open and effective every day of the year, incredible! Is not it)

we should have only 5 sales per day.

To estimate the number of visitors needed to make these 5 sales every day, we must take into account the conversion rate of our store. In general and on all of our E-commerce customers this varies between 0.8% and 3%. Everything depends on the market on which the store operates, its referencing and especially the attractiveness of its offer. Let’s take for example, only 1% of conversion rate.

We must therefore apply the following formula: minimum number of visitors = number of sales/conversion rate. i.e. 1818/0.001 ( 1%) = 181800 visitors in the year. Let’s divide by days and we get: 498 visitors days, so to reach a turnover of 100K per year, you will need 498 visitors per day.

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Now let’s look in more detail because when we create an E-Business we have to take into account the launch period and a site does not find its place immediately (we have techniques to accelerate this, and we can help you but for that you will have to contact us). This ramp up must be taken into account and the real difficulty is to determine how long it will take for the site to have about 500 visitors/day. The answer to this question depends on your more or less competitive sector but also and especially on your personal investment and what you have presented to your E-Business. You will therefore have to play on the medium/long term factors such as SEO and the very short term such as affiliation and SEA or mailing which is a very qualified and inexpensive resource of traffic if you have taken care to develop an acquisition strategy “we are talking about clean emails”, to achieve your objectives and reach your goals.

Now that you have done your calculation, you are sure to do your marketing alone or you absolutely need our intervention.

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