E-commerce

    E-commerce Validation

    Validate your online store idea with AI analysis of product demand, profit margins, competition, and market trends. Know before you stock.

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    E-commerce Validation Framework

    Demand Analysis

    Search volume, trends, seasonality

    Profit Margins

    COGS, shipping, fees, margins

    Competition

    Market saturation, unique angle

    Supplier Validation

    Reliability, quality, MOQ

    Platform Selection

    Shopify vs Amazon vs Custom

    Marketing Strategy

    CAC, LTV, channels

    Frequently Asked Questions

    How do I validate an e-commerce business idea?

    IdeaProof validates e-commerce ideas by analyzing: product demand, competition intensity, profit margins, customer acquisition cost, shipping/logistics feasibility, and supplier reliability.

    What profit margin is good for e-commerce?

    Target 30-50% gross margin minimum for sustainable e-commerce. After COGS, shipping, returns, marketing, and transaction fees, you need buffer for profitability.

    Should I start with dropshipping or hold inventory?

    Dropshipping: Low risk ($0-$500 startup), lower margins (10-20%). Inventory: Higher margin (30-50%), brand control, but needs $5K-$20K capital.

    How do I validate product demand before stocking inventory?

    IdeaProof analyzes: Google Trends, Amazon BSR, keyword search volume, social media mentions, competitor sales estimates, and seasonal patterns.

    What's a good customer acquisition cost (CAC) for e-commerce?

    CAC should be < 30% of customer lifetime value (LTV). For $50 AOV: Target CAC $10-$15. For $200 AOV: CAC $40-$60 acceptable.

    What are the biggest e-commerce red flags?

    Red flags: Oversaturated market (100+ sellers), low margins (< 30%), high return rates, seasonal only, complex logistics, commodity products.

    What is the global e-commerce market size?

    Global e-commerce was $5.8 trillion in 2023, projected to reach $8 trillion by 2027 (9% CAGR). US: $1.1 trillion. DTC growing at 15%.

    What's a good e-commerce conversion rate?

    Average: 2-3%. Good: 3-5%. Excellent: 5%+. Mobile: typically 50% of desktop. Category matters: fashion 2%, electronics 1.5%, beauty 3%.

    What return rates should I expect?

    Average return rates: Fashion 20-30%, Electronics 15-20%, Home 10-15%, Beauty 5-10%. Free returns increase conversion but cost 5-10% of revenue.

    How much does e-commerce marketing cost?

    Expect 15-30% of revenue on marketing. Facebook/Instagram: $0.50-$2 CPC. Google Ads: $1-$3 CPC. Influencer: $100-$10K per post. Email: highest ROI.

    What e-commerce platform should I use?

    Shopify: Best for most ($29-$299/mo). WooCommerce: Lowest cost, more technical. BigCommerce: Mid-market. Custom: $50K+ investment for enterprise.

    What's the e-commerce startup failure rate?

    80-90% of e-commerce businesses fail within 18 months. Main causes: poor product-market fit (35%), cash flow issues (30%), marketing failures (20%).

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    Knowledge Base

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    Funding

    How to Get Funding?

    Explore funding options from bootstrapping to venture capital and angel investors.

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    What is an MVP?

    Learn what a Minimum Viable Product is and how to build one for your startup.

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    How to Build an MVP?

    Step-by-step guide to building your first MVP without wasting time or money.

    Metrics

    What is TAM, SAM, SOM?

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    Research

    How to Do Competitor Analysis?

    Comprehensive guide to analyzing competitors and finding your market advantage.

    Metrics

    What is CAC?

    Calculate Customer Acquisition Cost and optimize your marketing spend.

    Metrics

    What is LTV?

    Understand Customer Lifetime Value and how to increase it for profitability.

    Funding

    How to Create a Pitch Deck?

    Build a compelling pitch deck that captures investor attention and secures funding.

    View All 45+ Questions

    Validate Before You Stock

    Get product demand analysis, margin calculations, and competition intel.

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