On the Web: Supersize Me
Want to double your bottom line? Increase average order size by just 10 percent
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The Bottom Line
The first column in the chart (at right) shows how much money a typical retailer makes on a $100 order. The example assumes the product cost is 50 percent of the price, and shipping and fulfillment costs take up another 10 percent. The example retailer spends $20 on sales and marketing to generate an order, pays another $16 to cover overhead, and makes a $4 profit on it.
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Larry Kavanagh
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