How to Open a Convenience Store (in Just 10 Steps)
July 2, 2020
July 2, 2020
If you’re considering becoming a convenience store (“c-store”) owner, you’re in good company. According to the National Association of Convenience Stores (NACS), the United States boasts over 154,000 convenience stores that generate $233 billion a year in sales. What’s more, sales at 75% of c-stores grew for the 17th consecutive year in 2019. That’s a lot of years of sales growth! We’ll show you how to open a convenience store and get in on that action.
What’s driving this growth?
Convenience stores have come a long way in recent years, benefiting from important changes in consumers’ need for convenience and speed and their willingness to pay for it. The need for small-scale convenience stores that provide basic consumer items has remained strong in recent years.
If those growth prospects are not enough to pique your interest in opening a convenience store, know this:
Amazon recently decided to enter the convenience store business – as a supplier. It is also piloting cashier-less convenience stores known as “Amazon Go” stores in Seattle.
We all know that where Amazon goes money follows!
You don’t have to be a big company like Amazon to run a successful c-store, however. 60% of the convenience stores in the USA are owned by individuals.
If the idea of starting your own store sounds intimidating, then you can consider buying an existing one.
Before taking steps to learn more about how to open a convenience store, you’ll want to carefully weigh the pros and cons of c-store ownership. We’ve summarized the main ones below.
You might consider starting a food truck if you’d like a business with lower upfront costs.
Still interested after that list of cons? Keep reading!
Ah, this is the million-dollar question!
Can you in fact make a million dollars owning and running a convenience store? Well, that depends on a lot of things.
Historically, average convenience store profit margins have been quite low, hovering around 2% for independently owned stores.
Convenience store owners must constantly manage high fixed costs including rent, inventory, and operating costs like utilities while optimizing product and pricing mix and attracting foot and car traffic.
C-stores of course mark up their products significantly over grocery stores or other retail outlets to account for the convenience factor and to take advantage of impulse buying.
Typically, markups are as much as 10%-20% more than what a regular grocery store would charge, and sometimes higher for a really in-demand product.
A key to maximizing your profit margin is knowing your product margins and getting the product mix and display correct in your store. Below is a chart that shows the average gross margins for different types of products.
Most people assume that cigarettes and alcohol have the biggest margins. In fact, health and beauty and good old fashioned candy are among better choices for maximizing profit margins.
How much do convenience store owners make?
There is so much that factors into what you could earn as a convenience store owner, it’s hard to gauge what a typical take home store owners’ salary would be. According to Indeed.com, the average convenience store owner takes home $66,000 a year.
Estimates provided by c-store owners on Quora and Reddit indicate that after a few years you can take home anywhere from $75,000 – $100,000.
There are three options for owning a convenience store:
The advantages of buying an existing c-store are many. Depending on the existing business situation, they can include:
Despite these potential advantages, you should recognize that often the reason a store is for sale is that it’s losing money or the financial payback is not worth it to the owner. You’ll need to do your due diligence to understand the true reason the small business is for sale.
If you are buying a convenience store, as with any small business, you’ll need to do some due diligence (for more about due diligence read our article). Some questions to investigate are:
These are just a few examples of questions you’ll need to ask. After you’ve gathered this type of information you may find that you prefer to start a convenience store from scratch.
37% of c-stores are part of a chain such as 7 Eleven or Circle K. There’s a good reason for this. A franchised convenience store has many benefits, not the least of which is an established brand name.
The parent company provides you with guidelines and procedures, inventory lists, and pays for national marketing and advertising.
When purchasing or opening your own store, you would of course pay for all of these services out of your (already thin) profits.
What other benefits do you get with a franchise c-store?
Franchises provide many benefits over starting a store from scratch such as:
The advantages and disadvantages of opening your own convenience store from scratch are the opposite of purchasing a franchise or an existing store. You’ll have total control over:
Regardless of which choice you make, much of what it takes to startup and run a c-store is the same.
So, let’s start with the biggest question – how much does it cost to open a convenience store?
The cost of opening a c-store varies tremendously and depends on a number of factors. These include:
One of the biggest startup costs for opening a convenience store will be inventory. According to the Small Business Chronicle typical startup inventory costs can reach around $20,000.
Inventory costs will be driven to a large extent by the number of SKUs (stock keeping units) that you choose to sell, which in turn is largely driven by the size of your store.
The moral of the story?
Be careful about choosing the size of your store, as it will ultimately drive a large part of your startup and operating costs. Unless you have very deep pockets, buying a truck stop-sized store is probably not a great idea. In this case, it really is better to start small.
Other startup costs to include in your budgeting are:
You will want to price out beforehand what these costs will be. If you find any excessive costs such as rent and remodeling requirements, or you think that you will have trouble obtaining enough financing to fund these startup costs, then reconsider your decision.
Typical licenses and permits that you will need to run a convenience store include:
Obtaining these permits requires money and time. For example, to obtain a health permit, you and your employees will likely have to take a food safety course. Likewise, to obtain an occupancy permit, you will have to ensure that your building and facilities are up to code.
A good place to start to find out what permits you will need is the Small Business Administration. You should also ask the current owner if you are purchasing a small business or franchise.
When you’re operating a small business on fairly thin margins, it is critical to use every trick you can to manage your operations for profit. Following are 10 tips for increasing your chances of successfully running your convenience store.
Because running a convenience store successfully means that you must be very attentive to your margins, it’s a good idea to create a business plan before starting up. In fact, if you require bank financing to open or buy your store, you will need to put together a business plan. This is true even if you are buying a franchise.
Don’t fret at the idea of doing this! This pre-requisite to opening a convenience store will help you to be more successful.
When you put together your plan, you’ll have to gain an understanding of your market including competitors and customers.
You’ll have to investigate and understand business drivers such as foot traffic, pricing and product mix and how these interact to drive revenue.
Part of creating your plan will involve costing out your startup needs and operating costs. You’ll have to put it alltogether in the form of financial forecasts that can demonstrate to a bank (and to yourself) that you understand how to manage your margins and what the drivers of your business success will be.
Scared of business plans?
Don’t be! Check out Liveplan business plan creation software, an easy to use software that walks you through the steps of creating your plan and provides a lot of resources.
Even better, Liveplan provides an example of a convenience store business plan created using Liveplan. (Note: do not copy and paste!)
No matter how great your product mix, what your pricing is, or how much you advertise, if you choose a location that does not bring you a lot of customers looking for “convenience” then you won’t be successful. This is true whether you are opening a brand-new store or purchasing an existing convenience store.
How do you find foot traffic numbers? There are several ways that you can gauge traffic for a location:
What else makes a good c-store location?
You don’t want your store to be surrounded by two or three alternative stores, such as a larger grocery or chain pharmacy store.
Your storefront should also be visible and not tucked away down an alley in an office building complex.
A good location is one where you can gain regular clients, such as a neighborhood corner, a large office complex or a school zone. Your location should also have ample and convenient parking and be easily accessible.
Another location factor specific to convenience stores is theft and robberies. Since convenience stores are subject to theft and criminal action, you’ll want to investigate if the building is secure and consider the surrounding neighborhood’s crime and income profile.
Remember, however, higher traffic always translates to higher rent. Do the math in your business planning to make sure the higher rent is worth it!
As an example, if you are scouting a store spot, look around for future construction projects or other factors such as seasonality that might inhibit traffic.
Be proactive with your financials rather than waiting for problems to crop up. Study individual product sales and margins and tweak your purchasing and pricing accordingly.
Notice discrepancies and sales and inventory which may indicate theft. Experiment with pricing and new items and track results. Watch your cash flow like a hawk.
Constantly look for ways to lower costs, for example by negotiating new vendor contracts or cutting items that spoil quickly.
In a business based on high volumes and low margins you want to always be trying to optimize between sales volumes and price.
For a convenience store, sometimes a discount of just $.10 on a soda can result in a 300% increase in sales volumes.
It’s especially important to build customer loyalty if you don’t have a national brand backing your convenience store.
Keep customers coming back for impulse buys or favorite products and create a community out of your store by rewarding frequent purchases and providing interesting discounts.
The knock-on effect will be more frequent visits, impulse purchasing and higher inventory turnover.
One of the drawbacks of a convenience store is that it sees high volumes of people daily. This makes it hard to keep bathrooms, floors, food areas, trash cans, etc. clean.
For your store’s reputation, customer loyalty , and sales, you must maintain clean food spaces and bathrooms. Think about it, would you eat a hot dog from a place where employees use a dirty bathroom or leave spilled nacho cheese on the floor?
If the store a block down sells coffee for $.99 and you are selling it for $1.19, you should consider that either you need to have much better coffee than your competitor and/or understand that some people and their impulses will go to your competitor.
In the convenience store business, customers do pay attention to prices because they know they are paying a premium every time they go into a store.
It is critical for security and financial management to have an up to date point of sale (POS) system.
A point of sales system helps you manage and keep track of sales, vendors, calculate store profit, and more. In addition, you’ll want to invest in state of the art anti-theft and security equipment like CCTV cameras, alarms, and cash register monitors to prevent losses, which you can use the point of sale system to keep track of.
It’s easy to just say that everybody’s your customer, given the common nature of convenience stores across the country. This is a big mistake.
Due to the huge variety of potential products you could sell, the more you understand your potential customer base, the easier and less expensive it will be to stock the shelves with products that sell at attractive margins and high volumes.
Some aspects to understand about your customers are:
It’s also important to understand the demographic of your convenience store customers as well. Business people may want you to stock the New York Times and have cell phone chargers in a ready to grab location.
Construction workers may want good deals on beer and may want the cashier to know what type of cigarettes they smoke before they have to ask.
High school kids on a lunch break or after school will want a great candy and ice cream snack selection.
If there is in fact a school nearby you may want to stock products of interest to women/mothers as well, like good coffee, premium face cream brands, makeup, baby diapers, healthy snacks, etc.
Remember a couple of years ago when fidget spinners were flying off the checkout counter of every convenience store? New always sells.
Keep on top of what is selling and what isn’t and follow new trends such as CBD products, ready to eat meals and good coffee.
Not sure where to start following c-store trends? Some good industry resources for tracking trends in the c-store industry include:
Convenience Store Decisions Magazine
Convenience Store News for Small Operators
In addition, it’s a good idea to be a member of convenience store trade associations:
A big part of running a convenience store is the management of inventory purchases. Inventory management drives your margins.
If you purchase a convenience store, you’ll inherit a set of vendor relationships and associated products, which may or may not be a good thing.
As part of your business planning, you’ll want to take a look at some of the biggest vendor contracts to determine if they are fair and if there is any room to negotiate to improve margins, working capital or product mix.
You’ll purchase most of your inventory through wholesalers and distributors. These may be wholesalers who carry nearly all the inventory you want, or vendors who specialize in different types of products.
You can expect to carry at least 2,000 inventory items at your convenience store.
Generally, your vendor choices should be driven by product choices that your customer demographic wants. It’s also a good idea to “spread the wealth” among a few vendors so as not to be reliant on one.
You may also save costs in doing so and find more inventory choices to suit your specific customer needs.
If you are opening up a convenience store from scratch, you’ll have to identify wholesalers and SKUs you want to sell yourself.
Vendors will also conduct a credit check. If you have poor credit, you’ll find yourself in a not so great negotiating position. At any rate, most vendors will require you to pay upfront for your first order.
As we mentioned before, it is likely you’ll need to put together a business plan with financial forecasts to obtain either startup financing and/or working capital financing.
There are several common options for financing the startup and operating costs of a convenience store.
The types and availability of financing for your convenience store will depend in part upon the specific loan request you make. Financing options have traditionally been fairly broad.
There are various loan purposes to consider as a borrower depending on whether you are looking to purchase an existing convenience store business, obtain start-up financing for a new store, seek capital improvements, pursue construction, or request financing for machinery, equipment, and inventory.
There are several loan types that have been used to finance convenience stores, which can be structured as fixed, variable, or fixed to floating.
A good place to start looking for financing is by contacting your bank to see if they can arrange a Small Business Administration (SBA) loan.
The Small Business Administration’s (SBA) 504 and 7(a) loan programs are both popular alternatives.
The SBA backs typically 75% of the full loan amount so that banks and lenders assume less balance sheet risk on the loan. Loan terms are structured based on the assets being financed.
Conventional loans are typically made by traditional banks and some non-bank lenders. These loans are not guaranteed by any third party and the bank or lenders assume the full risk of the loan.
Therefore, credit standards are usually higher for conventional loans. Pricing and terms can be more flexible for conventional loans as lenders can price lower for stronger loan requests.
Innovating the Way Entrepreneurs Grow®
The Smart Way to Fund Your Business
Keep in mind that when you seek financing from a bank, you must have good credit and be willing to put up about 15%-20% of the startup costs.
Convenience stores often use asset-based lines of credit for a variety of business needs. Asset-based financing can be either a revolving or term loan that is secured by assets such as accounts receivable, real estate, equipment, or inventory.
For buyers of an existing convenience store, it may be possible to negotiate financing with the seller. If you don’t have great credit and/or have some money to put down, this is a great option for opening your own convenience store.
With this kind of financing, instead of receiving the full purchase amount, the seller finances all or part of the purchase price.
You negotiate with the seller the interest rate and terms of the financing. One benefit of seller carry financing is that the seller will be supportive of the transition and should offer training to ensure that the buyer is successful in taking the business operations over.
Merchant cash advance financing is based on credit card receivables where the merchant cash provider will advance funds based on historical performance or credit card sales.
This financing works well for businesses like convenience stores where there is a large volume of credit card sales. Merchant cash is considered short-term financing and can be funded quickly.
Starting a convenience store takes money, planning, time, and dedication.
With careful planning and research, the right location, the right products on the shelves at the right price, and a lot of hard work, you can eventually earn a good living after opening your convenience store.
So, which is it? Will you stick with your 9 to 5 – 5 days a week? Or go for the 7 to 11 – 7 days a week?
Jen DuBois
What podcasts do CEOs listen to and what is the number one business podcast out there today?
We set out to answer both of those questions with our list of the top business podcasts. Each podcast offers fresh insights that can help you grow as a business owner and person.
Fortune 500 executives, aspiring startup owners, and entrepreneurs at every level will find what they're looking for on this list. Get ready to find a podcast that speaks to you!
Wondering “What podcast should I listen to?” Naturally, we’re proud of the content our super savvy team creates, so we’re introducing the UpFlip podcast first in our list of great podcasts, followed by other options that ought to be on your radar.
Honestly, that depends on the business owner. These 65 podcasts are the most popular across the top podcast services and are our top choices for their content and entertainment value, too. There are tons of great business podcasts out there, though.
If this blog has inspired you to start a business, check out our blog on how to get started —even without any money. You can also find information on the 40+ most profitable types of business.
What is your favorite podcast? Let us know below!
Did you know that eCommerce businesses are among the most reliable businesses to start?
Unless you want to become a farmer, there’s no better industry to get into. Over 70% of eCommerce stores that opened in the last five years have stayed in business.
Advancements like dropshipping, print-on-demand, and crowdfunding have made it easier to start a successful online store, but what kind of eCommerce should you get into?
Below, you’ll find 23 eCommerce business ideas to consider. We’ll provide their income potential, startup costs, and a little bit of background to help you decide on the best option for you. Then we’ll give you tips for getting your eCommerce business started.
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Read on, or click on any of the links below to jump to the business idea.
The best eCommerce business ideas cater to current market demands, offer unique value propositions, and have the potential for scalability and growth. Keep reading for some of the best ideas for starting a successful eCommerce brand.
Many businesses on this list have a wide range of startup costs because there are so many different ways to implement the ideas.
For instance, several can use dropshipping or print-on-demand (POD) fulfillment methods, which make startup costs of less than $1K completely achievable.
Meanwhile, if you’re creating a product (or stock of products) before selling, the costs can be much higher. Designing a product and producing the first batch can cost anywhere from a few thousand to the nearly $30 billion spent on R&D annually by Apple.
We hope this helps explain why some of the ranges in startup costs for these ideas seem so vast.
• Average Annual Revenue: $60K to $120K
• Average Profit Margins: 5-15%
• Startup Costs: $100-$10K
• Time to Revenue: 30-90 days
• Annual Market Growth Rate: 16.5%
• Best For: Organized, process-driven entrepreneurs with expertise in a particular product area and strong marketing skills
With this eCommerce business idea, you curate and sell subscription boxes catering to specific interests, delivering a selection of niche products regularly to customers' doorsteps.
Popular niches for subscription boxes include:
The best products for a subscription startup business are evergreen items that customers will need on a recurring basis. You can also target niches with passionate, learning-oriented audiences, like readers, makers, crafters, and fitness enthusiasts.
• Average Annual Revenue: $114K+
• Average Profit Margins: 10.3%
• Startup Costs: $500-$250K
• Time to Revenue: 3+ months
• Annual Market Growth Rate: 2.0%
• Best For: Sales- and marketing-savvy fashionistas tuned into fashion trends, designers, and artists
An eCommerce website that offers customizable and personalized products, such as engraved jewelry or custom apparel, can be an excellent online business idea.
The cheapest way to start your own eCommerce business is to use a print-on-demand service. This saves you the need to worry about shipping costs or inventory management.
If you have the budget, though, you can start a more profitable eCommerce business by investing in equipment to do the customization yourself. That’s how Logo Unlimited grew into a seven-figure screen printing business. Hear their story here:
• Average Annual Revenue: $130K+
• Average Profit Margins: 5.4%
• Startup Costs: $100-$3.5M
• Time to Revenue: 6-18 months
• Annual Market Growth Rate: 0.4%
• Best For: Wellness and nutrition professionals, fitness experts, and athletes who excel at organization, sales, and customer service
A 2022 report from McKinsey & Company estimates the global market value of wellness products to be $1.5 trillion, with an annual growth rate of 5-10%.
Online stores selling health and wellness products can be highly lucrative eCommerce businesses because of this high demand. Popular product categories include:
This can be an excellent eCommerce business idea on its own, or you can sell related products as an extra revenue stream for an online fitness coaching service, wellness blog, or similar online business.
• Average Annual Revenue: $3.9M+
• Average Profit Margins: 8.53%
• Startup Costs: $2,500-$3.5M
• Time to Revenue: 6-18 months
• Annual Market Growth Rate: 0.5%
• Best For: Designers, artists, makers, and crafty entrepreneurs with strong digital marketing skills
A store selling stylish home and living products—think decor, organization solutions, and smart home gadgets—is one of the top eCommerce business ideas for interior designers and other home furnishings experts.
Depending on your skills, you can build your online business from items you make yourself, or you can set up a business online with curated high-quality products made by other online or local businesses.
Like with other store ideas, the best way to build a successful brand in home accessories is to focus on a niche. This spares you the need to compete with every other eCommerce store in the home goods niche.
For example, selling kitchen and dining mats or natural, sustainably sourced products can be a profitable eCommerce business idea.
• Average Annual Revenue: $11.5M+
• Average Profit Margins: 5.7%
• Startup Costs: $500-$250K
• Time to Revenue: 3+ months
• Annual Market Growth Rate: 1.2%
• Best For: Inventors and makers passionate about sustainability
Customers today are eager for eCommerce businesses focused on eco-friendly and sustainable products.
You can start your own eCommerce website catering to environmentally conscious consumers in a range of niches, from natural cosmetics to upcycled or natural products for the home or office.
• Average Annual Revenue: $1.6M
• Average Profit Margins: 4.3%
• Startup Costs: $500-$250K
• Time to Revenue: 3+ months
• Annual Market Growth Rate: -5.6%
• Best For: Visual artists and graphic designers with strong digital marketing skills
POD business models are trending for good reason. This is the easiest way to start an eCommerce business because you don’t need to worry about inventory or shipping—just upload your designs and let the eCommerce website take care of the rest.
Ryan Hogue was working two jobs before he started his own website selling print-on-demand products. Now he’s a multi-million dollar Amazon seller with a profitable eCommerce business that brings in more than $50,000 a month. Learn more in this interview:
• Average Annual Revenue: $36K-$50K
• Average Profit Margins: 5%
• Startup Costs: $150-$500
• Time to Revenue: 1-3 months
• Annual Market Growth Rate: 25%
• Best For: Those with marketing and eCommerce skills
Dropshipping is similar to POD. With this type of eCommerce site, you partner with other eCommerce entrepreneurs to sell their products in your shop online.
Like POD, dropshipping eCommerce stores don’t need to worry about inventory or shipping. They require even less effort because you don’t need to do any designing—you literally just sell products made and shipped by others. That makes dropshipping one of the easiest and most profitable eCommerce business ideas.
Dropshipping helped Heather Johnson build her eCommerce website from a side hustle into $15,000 in monthly revenue. Hear her advice in this interview:
• Average Annual Revenue: $114K+
• Average Profit Margins: 10.3%
• Startup Costs: $500-$250K
• Time to Revenue: 3+ months
• Annual Market Growth Rate: 2.0%
• Best For: Crafters, makers, designers, and artists with strong sales and marketing skills
Even when they do their shopping online, people love high-quality products that feel personal and artfully made. An eCommerce site selling handmade goods delivers this and is the best eCommerce business for crafty and creative entrepreneurs.
You can sell just about any kind of product in eCommerce. Popular niches include jewelry, fabric crafts such as knitted or crocheted goods, woodworking items, or wedding products such as favors and gift boxes for the wedding party.
Candles are another handmade product ideal for selling online. Watch the interview below to learn how Blk Sunflower grew to six-figure sales in less than two years:
• Average Annual Revenue: $1.6M+
• Average Profit Margins: 1.9%
• Startup Costs: $500-$250K
• Time to Revenue: 3+ months
• Annual Market Growth Rate: 0.8%
• Best For: Veterinarians, pet owners, animal lovers, inventors, and designers
From pet food to animal health care products and accessories like collars, clothing, and costumes, there are lots of potentially profitable eCommerce business ideas in the pet care niche.
Considering that the pet food industry alone was valued at $99 billion in 2022, there is a lot of money to go around in this niche, and eCommerce businesses related to pet products have a lot of growth potential.
Marshall Morris has built a very successful business in the pet care niche with I Heart Dogs, with more than 50 million followers and an average revenue of $22 million a year. Hear his story in this interview:
• Average Annual Revenue: $2.7M+
• Average Profit Margins: 11.11%
• Startup Costs: $100-$3.5M
• Time to Revenue: 6-18 months
• Annual Market Growth Rate: 2.2%
• Best For: Tech and trend experts skilled at marketing and organization
Just about everyone has a smartphone. You don’t need to sell the smartphones themselves to turn this into a great eCommerce business idea.
Another great eCommerce product idea is to sell related products, like phone cases, chargers, screen protectors, and earbuds.
This is one of those eCommerce ideas that offers a lot of flexibility and variety. If you’re a maker or artist, you can create your own designs and products. Those whose skills are more in digital marketing and sales can focus their eCommerce website on reselling products made by other people.
• Average Annual Revenue: $9.3M+
• Average Profit Margins: 1.8%
• Startup Costs: $100K-$3.5M
• Time to Revenue: 6-18 months
• Annual Market Growth Rate: 0.8%
• Best For: Effective team builders, managers, and supply chain pros, as well as organized entrepreneurs with excellent customer service skills
An online grocery store is a unique business plan that can offer a lot of growth potential. In the past, the majority of people bought groceries from local stores, but the rise of food delivery has started to shift that. eCommerce platforms offer shoppers more convenience and choice and are rising in popularity.
One great thing about the grocery niche is that there’s a huge number of existing customers. After all, everybody needs food—you just need to convince them to buy it from your eCommerce website to grow a successful business.
• Average Annual Revenue: $60K-$120K
• Average Profit Margins: 5-15%
• Startup Cost: $100-$1K
• Time to Revenue: 30-90 days
• Annual Market Growth Rate: -9.3%
• Best For: Shoppers, collectors, and thrifters
Not every great eCommerce product idea is one you make from scratch or sell new. Vintage items and collectibles have long been among the most popular eCommerce industries.
Getting your inventory for this kind of store can be very affordable, too. You can buy items from thrift stores, yard sales, flea markets, or storage unit auctions at a great price, then resell them for what they’re really worth to make a profit.
That’s how Mike Wilson got started with Golden State Pickers, and today he makes upwards of $30,000 a month as an eBay reseller. Learn how he grew his business here:
• Average Annual Revenue: $2.3M
• Average Profit Margins: 5.5%
• Startup Costs: $500-$250K
• Time to Revenue: 3+ months
• Annual Market Growth Rate: 0.6%
• Best For: Electronics, technology, and repair pros; detail-oriented and mechanically-minded entrepreneurs
For tech-minded entrepreneurs, selling gadgets and accessories, like headphones, smartwatches, and tech-related gifts, is among the top eCommerce ideas.
The top trending eCommerce product idea categories related to tech include:
Using an online store builder platform, you can quickly get up and running and start a profitable eCommerce business in any of the above categories.
• Average Annual Revenue: $234K+
• Average Profit Margins: 5.8%
• Startup Costs: $100-$1K
• Time to Revenue: 1-3 months
• Annual Market Growth Rate: 1.1%
• Best For: People with niche or in-demand skills and expertise
Lots of people turn to the internet when they want to learn a new skill. This puts online courses among the top eCommerce business ideas—and you don’t actually need to be an expert in the niche to get started with an online education business.
Jacques Hopkins played piano as a hobby before starting Piano in 21 Days. Now, he makes $40,000 a month selling his online courses, giving him the flexibility and freedom he lacked as an engineer. Hear his story in this podcast:
One great thing about starting an online education business: It doesn’t cost much to start. Jacques's initial budget was around $150 a month. While it can take a lot of time and effort to create an online course or digital product, once it’s ready to sell, the time investment is minimal.
As far as how to reach customers, you can sell courses through your own website or go through one of the online learning platforms that already exist, like Kajabi, Skillshare, or Teachable.
• Average Annual Revenue: $2.8M+
• Average Profit Margins: 3.4%
• Startup Costs: $1K-$100K
• Time to Revenue: 3+ months
• Annual Market Growth Rate: 0.8%
• Best For: Gardeners and plant experts with strong networking and marketing skills
Not all eCommerce business ideas are techy. For those who love the outdoors and have a green thumb, you can start an online store selling seeds, tools, and other gardening accessories.
Another option is to sell the things you grow. Rane Roatta started a tropical fruit farm from scratch and grew it to a seven-figure revenue, selling mostly online. Hear how he did it in this interview:
• Average Annual Revenue: $1.6M+
• Average Profit Margins: 2.9%
• Startup Costs: $100K-$3.5M
• Time to Revenue: 6-18 months
• Annual Market Growth Rate: 0.8%
• Best For: Creative athletes, fitness experts, fashion designers, and sports and fitness enthusiasts
The global apparel market for activewear was valued at over $319 billion in 2022, and that’s expected to soar to over $450 billion by 2028.
A clothing business selling this niche apparel product is among the top eCommerce business ideas for entrepreneurs who like both fashion and fitness. This kind of eCommerce store can also make a nice supplement to an online fitness coaching business or YouTube fitness influencer.
• Average Annual Revenue: $1.4M+
• Average Profit Margins: 5.7%
• Startup Costs: $500-$250K
• Time to Revenue: 3+ months
• Annual Market Growth Rate: 1.2%
• Best For: Makeup artists, beauty influencers, cosmetic chemists, and hair and skin care experts
If you’re looking for niche examples with high profit potential, the beauty industry is a great choice. Revenue for beauty and personal care products exceeded $625 billion in 2023, and there are a variety of eCommerce business ideas within the niche to choose from.
Charmaine Nicole founded her skin and hair care product lines based on her personal challenges finding products designed for people of color. Today, it makes more than $75,000 a month. Hear her story in this interview:
• Average Annual Revenue: $2.3M
• Average Profit Margins: 5.5%
• Startup Costs: $500-$250K
• Time to Revenue: 3+ months
• Annual Market Growth Rate: 0.6%
• Best For: Electronics, technology, and repair pros; detail-oriented and mechanically-minded entrepreneurs
If you’re wondering where to find eCommerce business ideas, one place to start is right at home. Smart home devices have surged in popularity, and you can start a profitable eCommerce business selling these niche products to eager consumers.
You don’t need to be a programmer or inventor to start this business, either. You can build off of existing control systems, like Alexa and Google Home, to bring customers new ways to make their day-to-day life more convenient.
• Average Annual Revenue: $1.1M+
• Average Profit Margins: 11.79%
• Startup Costs: $500-$250K
• Time to Revenue: 3+ months
• Annual Market Growth Rate: 0.8%
• Best For: Parents, educators, collectors, gamers, and other fun-loving entrepreneurs
Entertainment is one of the best eCommerce business ideas, but it’s often overlooked—and that makes it an excellent niche for people looking to open unique online stores.
There are a lot of ways you can go with this kind of online store. Some ideas of things to sell include:
• Average Annual Revenue: $2.3M
• Average Profit Margins: 5.5%
• Startup Costs: $500-$250K
• Time to Revenue: 3+ months
• Annual Market Growth Rate: 0.6%
• Best For: Electronics, technology, and repair pros; detail-oriented and mechanically-minded entrepreneurs
In 2023, 12.7% of employees work from home, and another 28.2% work a hybrid schedule.
That’s a lot of potential customers for an eCommerce site selling products tailored to remote workers, such as ergonomic office furniture, noise-canceling headphones, and home office gadgets.
• Average Annual Revenue: $15.9M+
• Average Profit Margins: 4.7%
• Startup Costs: $500-$3.5M
• Time to Revenue: 6-18 months
• Annual Market Growth Rate: 5.90%
• Best For: Entrepreneurs in healthcare, manufacturing, and similar industries that use protective gear
During the pandemic, there was a sharp increase in the need for personal safety equipment like face masks and gloves.
The fact is, though, that lots of people need these items on a daily basis, and not just in the medical field. Gloves, goggles, face shields, head protection, and ear protection are necessary tools in a range of trades, from house cleaners and waste management pros to construction workers, welders, and athletes.
If you’re an inventor, you can launch a startup business idea to fill a gap in the current personal safety equipment market. Selling existing products targeted to a specific niche can also be an excellent eCommerce business, especially if you have expertise in what that target customer needs from their gear.
• Average Annual Revenue: $670K+
• Average Profit Margins: 11.79%
• Startup Costs: $1,000-$3.5M
• Time to Revenue: 6-18 months
• Annual Market Growth Rate: 1.1%
• Best For: Designers, event planners, and fashion and trend experts
The global market for the wedding industry is huge, generating over $160 billion in revenue in 2020.
People want their big day to be perfect, and you can help people create that dream wedding experience by starting a wedding supplies business online.
Like with other options on this list, there are multiple niches to explore. Just to give some niche examples: Fashion designers can make handmade wedding gowns, or a graphic designer could create personalized wedding favors.
• Average Annual Revenue: $960K+
• Average Profit Margins: 12.03%
• Startup Costs: $1,000-$3.5M
• Time to Revenue: 6-18 months
• Annual Market Growth Rate: 2%
• Best For: Writers, editors, educators, and creative entrepreneurs with strong communication skills
An online bookstore can be an excellent eCommerce business idea for someone who loves reading, writing, and learning.
You can create the books yourself and sell them as physical copies or digital products, or you can curate a list of books written by others that all center on a specific niche.
There are other unique business ideas in this niche, too. For example, Case Kenny turned his expertise and passion for mental health into a guided mindfulness journal business, and he has made more than $5.3 million in revenue since he launched in 2020. Hear his story in this interview:
Creating your own online store requires significant effort, but it can also be very rewarding. By following these steps, you can create a successful online store that sells your products to customers all over the world.
It absolutely can be!
As you’ll see from the many eCommerce entrepreneurs interviewed by UpFlip, starting your own eCommerce business can help you achieve a range of personal or professional goals, whether you want to supplement brick-and-mortar sales or find a more flexible way to make a living so you can ditch your day job.
Now that you’ve seen bunches of online store ideas, which one strikes your fancy? Do you have ideas for eCommerce businesses that weren’t on the list? We’d love to hear about your eCommerce entrepreneurial journey!
I'm looking to find standard operating procedures for a c-store/gas station (independently owned), what do others in this industry use, are there automated ones that employees can look to online or maybe even via an App. Not sure who else I can ask, thank you!
Hello, I am interested in opening a Generial Store that is located in a tourist area that is located in the middle of a western USA natural area and the closest town with grocery stores are 46 to 36 miles. It would be like a historic Generial Store. I would sell camping equipment food items and beverages a limited amount of clothing items, firer wood, pre filled propane tanks. I would also want to have a electrical power station to recharge electric vehicles and for van campers to charge when needed to recharge there solar battery bank. And also offer postal and shipping services to campers. I would also like to offer parking lot camping spots when the weather is bad with heavy snow and/or rain at the present time I do not know if I want to offer shore power. But, we are not going to offer wast water dumping service. We do not want to sell 2,000 items. We have a list of what we want to sell. We only want to be open six days a week.
learn how to start up a business convenience store or something
Online learn how to start up a business convenience store or something
this article is interesting some convenience stores make money but not all of them because you have to be in an area with high traffic. Convenience stores don't make money on gas because they get like 5 cents to 10 cents on the gallons of gas so how does it make its money by going in there and buying drinks, food, lottery tickets, cigarettes, candy bar sells, ice cream bars , Ice cream or a partnership with a restaurant .
Which do you think is better, Franchising a convenient store or opening a new one to make your own name? Which is more profitable?
This is very interesting, I have always wanted to own a convenience store. Hopefully I have it in me in the future to do it myself.
Convenience stores predominately owned and ran by people from India. Not sure what attracts them to it, but it seems like a pretty solid business model if you have the right location. As mentioned in this post, its all about location and finding a solid location with food traffic, which I assume isn't that easy to do.
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