How much is the online promotion cost?Online shop e-commerce to do the whole network promotion

just about to doInternet marketingPromotional companies will have the following questions:

• Web PromotionHow much is the cost appropriate?
• How much does the online store customer service staff cost?

In fact, there is no clear standard for this. The core thing depends on your gross profit margin. I have seen differentE-commerceEnterprises, doing network promotion, the cost of spending is also a different model.

How much is the online promotion cost?

Let’s talk about the most common model: 40% gross profit margin, 10% labor, 10% promotion, 5% miscellaneous fees = 15% net profit margin,

• This is relatively good.
• A net profit margin of 10%-15% is the healthiest.

such as some smallSmall tradeEnterprise is a model with a relatively high gross profit margin.

• In the early years, the gross profit rate was 80%, the network promotion fee was 10%, the labor was 10%, and the miscellaneous fee was 5% = the net profit rate was 55%.
• In fact, the high net profit margin is not a good thing at all, indicating that the scale of the company has not been released at all.
• In recent years, the online publicity and promotion expenses have been gradually increased, and more company personnel have been allocated.
• So the size of the company increases and the net profit margin decreases every year (there is also a reason for increased competition).
• Hope to achieve below 20% in the next two years.

If it is lower than 40% gross profit margin, the net profit margin is less than 5%; or if it is higher than 60% gross profit margin, the net profit margin is less than 10%.

That would be unhealthy, and this kind of business is already out of the question.

What is the gross profit margin?

Gross margin is revenue - direct revenue cost.

How is gross profit margin calculated?

Net profit margin is based on gross profit margin minus administrative expenses, net of taxes and fees.

Sales Gross Margin and Net Profit Margin

The biggest difference between gross profit margin and net profit margin is:

• The gross profit margin on sales only considers the difference between sales revenue and costs, that is, gross profit margin;
• Net profit margin also needs to be based on gross profit margin, minus expenses and gains and losses for other periods, and then divided by revenue.

The formula for calculating net profit margin on sales:Net sales margin = net profit / sales revenue * 100%.