Ecommerce Franchise & Business Opportunities
Ecommerce Industry
General Ecommerce Franchise Industry
There are currently around 255,000 e-commerce establishments. These marketplaces & companies, including e-commerce franchises, drive revenue through online sales and online auctions. This marketplace however is very established with some key companies exercising large market shares like Amazon.com, Walmart, and E-bay. The E-commerce space has seen very fast growth that was accelerated further by the COVID-19 pandemic. The fall of brick-and-mortar retail stores will continue to fuel the growth of e-commerce sales.
Business Services Industry Trends
Companies in the business services industry will continue to invest in the integration of digital transformation into the overall strategic road map, not only to connect sellers and buyers directly but also to keep competitive within the industry. In addition, the demand for cybersecurity has been increasing as cybercriminals have been attacking businesses and threatening their data and confidential information. Firms that are victims of cyberattacks face great cost as clients tend to search for a more secure service provider.
Key Industry Numbers
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Paid-in-Full Rate
The Paid-in-Full Rate is when the SBA loan is fully paid off by the small business owner including interest, indicating financial strength.
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Charged Off Rate
The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the small business owner.
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:1
SBA Loan Success Ratio
For every 11 SBA franchise loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted.
-SBA Franchise Loan Data from 2010-2019
-Non-Franchise Businesses taken into account: 55,045
Ecommerce Franchise Industry Trends
Even if a company has a retail option, e-commerce will be needed to implement into their business strategy to capitalize on the growing digital age marketplace. Currently one in eight sales is now made online and this growth will continue due to millennials dependency on digital technology. Anyone looking to invest in an ecommerce franchise needs to have a strong understanding of both Google Analytics and Amazon Seller Central. It is important to also understand the industry because products have short life cycles therefore the ability to innovate and promote your brand is crucial.
Profit and Loss Breakdown (Based on Industry Averages in E-Commerce Services):
Business Breakdown:
Average Profit Margin: 5.6%
Revenue per employee: $948,400
Average Number of Employees: 2.5
Average Wages per Employee: $36,793
Industry Costs
Profit: 5.6%
Wages: 3.9%
Purchases 63.9%
Depreciation: .7%
Marketing: 5.9%
Rent & Other Utilities: 3.6%
Other: 16.4%
Largest Market Share in this Industry:
Amazon.com Inc: 37%
Average Business Services Franchise Industry Percentage Fees
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Royalty Fee
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Marketing Fee
Standard Business Services Franchise Industry Investment
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K
This metric is the standard industry investment amount for a single unit franchise investment in this industry. Our research and analytics team analyzed over 160 franchise concept investment breakdowns in order to calculate this figure.
0
%
Paid-in-Full Rate
The Paid-in-Full Rate is when the SBA loan is fully paid off by the franchisee including interest, indicating financial strength.
0
%
Charged Off Rate
The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the franchisee.
0
:1
SBA Loan Success Ratio
For every 10 SBA franchise loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted.
-SBA Franchise Loan Data from 2010-2019
-Franchise Businesses taken into account: 2,390
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