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Module lessons

How Many Orders Do You Need — ონლაინ მაღაზია / online store

Calculate how many sales you need to cover costs and make a profit.

To understand how many orders you need, you must know your fixed costs and the net profit from each sale. By dividing these two numbers, you find your "break-even point" — the minimum number of orders above which the business becomes profitable.

Why#

Working without a goal is like walking blind. If you don't know how many orders you need to cover costs, you can't determine your advertising budget, nor will you understand if it's even worth selling this product.

Steps#

  1. Calculate fixed costs: This is the amount you pay regardless of whether you sell anything or not. For example, to open an online store, the Sellit Start plan (59 GEL, source: sellit.ge/llms.txt) and the AI seller feature (20 GEL, source: sellit.ge/llms.txt). In total, the fixed cost per month is 79 GEL.
  2. Calculate profit per unit: Subtract the cost of the product, variable costs, and advertising from the selling price. If you have 15 GEL net left from one sale, this is your unit profit.
  3. Find the break-even point: Divide the fixed cost by the unit profit (79 / 15 = 5.2). This means you need about 6 orders a month just to cover costs. Thanks to the 0% commission on Sellit (source: sellit.ge/llms.txt), the margin on the money coming in after these 6 orders is directly your net profit.
  4. Set a realistic goal: If you want 1000 GEL in net profit, add this amount to the fixed costs (1000 + 79 = 1079) and divide by the unit profit (1079 / 15 = 72). You will need 72 orders a month to reach your goal.

Common Mistakes#

  • Setting the goal only in turnover: "I want to sell for 5000 GEL" does not mean 5000 GEL profit, because costs remain unaccounted for.
  • Unrealistic expectations: Making a lot of money with a low-margin product requires a lot of orders, which is difficult for a beginner.
  • Considering advertising costs constantly stable: Often, attracting more orders leads to an increase in the cost of advertising per unit.

Your Step Today#

Calculate your break-even point for your best product. Find out exactly how many items you need to sell per month to bring your costs to zero.