How much is each customer worth for your online ecommerce business?

I am sure you always hear people saying that those who bought from you before will always buy from you again. They are more likely to become your returning customers, be it buying the same product or other products that you are promoting.

Before you start an online business, please make sure that you do not fall into the low end of any market and compete on the price with many others. Imaging if I am selling a product costs USD49 as compared to you selling a product costs only USD4.90. You may have to sell 10 products to make the same amount of money that I am making with only 1 sale (assuming the profit margin is proportionate). In normal circumstances, the higher the price the better the profit margin.