3 things rarely talked about regarding online sales

Episode 1: choosing the products

You decided you want to sell online.

You start researching on the internet which platform is better, you search for advice on all types of groups, and inevitably you reach an IT company, an agency or a freelancer that can build your online marketplace.

From then on, things seem simpler:

  • The IT company recommends a platform or starts working on the platform chosen by you. Sometimes the IT takes care of the design too, other times you need a designer.
  • The creative department suggests banners, colours etc.

You, dear client, because you did your homework and know what to ask for: for the website to run smoothly, to have filters, to be connected to Google, and FB, for it to have a good SEO. Some clients also demand invoice automation and AWBs, UX and UI, to import the products through feed, campaign modules and reports.

Some things though, need to be managed by the client, and this is usually the point where things get complicated. We won’t talk about the business model you’ve chosen, or get lost in details.

In this article, we will only talk about the 3 things that are your responsability, dear client, which are usually disregarded or very poorly worked on.



We all know Alibaba.com, Aliexpress, Europages, DH Gate, WholeSaledeals, and some have different producers found in Europe or other continents. Very few of us are inventors or producers that create their own product.

Let’s seen what matters when we coose our products. First of all, you have to ask yourself some questions:

  • Is your product in demand on the market? There are products that „work” really well in other countries but in Romania not as much.
  • Are there other companies that sell similar products?
  • At what price does your competition sell?
  • Does your product have something different? An interesting characteristic?
  • Are there many competitors in my price range? Are there big brands that have communication budgets that I can’t beat?
  • Would the price I set be competitive on the market?

At ALGORITM we have a dedicated team which analyses and determines whether you’ve chosen the right product or not. There are analysis models which we use BEFORE you buy the stock. Through the pre-buying analysis, you won’t risk investing your money on a stock that won’t „work”.

How do you choose the products and how do you calculate the expenses? Here’s some mistakes to avoid:

  • Rounded up numbers, „by ear”: „I’ll buy it with 0,88 euro and I can sell it for 2,4 euro. Sounds good”
  • Forgeting some expenses: „the packaging costs me nothing, because I’ll do it on my own at home”
  • Underestimating: „I know a guy that can do it all: packaging, IT, eMAG, anything I want”

Sounds familiar? Let’s see an example – product x:

  • Has a price of 0,88 euro from the provider
  • And a recommended retail price of 9 lei, but you found competitors that sell it for up to 12 lei.

Let’s calculate:

  • PURCHASE PRICE AND TRANSPORT – how much does the product cost me?
    • Purchase price of 0,88 euro + transport price from Spain 0,1728 euro = 1,0528 euro, which equals to 5,2 lei would be the price up until it reaches your warehouse.
  • Then, to this price you add the LOGISTIC EXPENSES which can come up to aproximately 10-15% or even more. It depends on your business model.
    • Do you have your own warehouse? Do you package the products at home? Do you have an outsourced deposit?
    • How much does the person that packages the products cost you? Keep in mind that you have a price too, even if you’re doing it yourself.
  • Then you have the OPERATIONAL EXPENSES, which can add up to 10-30% depending on your business model and industry.
    • Operational expenses mean: your Wi-Fi and phone bill, accounting, gross salaries, courier, etc
  • And lastly, add the MARKETING EXPENSES – which can ad dup to 1-2% in some industries, but in this case we’re talking about million dollar companies. So you can take around 5-10% into consideration, but based on the market we know that many clients estimate to a much higher procentage.
    • Creative bugets, the well known Google Ads* and FB Ads costs, campaigns, booklets or catalogs, events, etc

*Let’s be real, we all know someone who invested 2000 euros each month in campaigns and the results weren’t what they hoped for.

Lets recap:

5,2 lei + 0,77 lei + 0,77 lei + 1,2 lei = 7,94 lei expense / product, to which you add „something” and a TVA of 9%

**Important: this is a hypothetical , the exact sums differ from business to business. For a spot on price, each business owner needs to make their own calculations.

Business model 1 – selling online, personal website or Marketplace => LOW OR NO INCOME

Business model 2 – fast sale, for example in B2B as gifts (a lot of products at once) => YES YOU’LL EARN A PROFIT


Do not neglect the correct calculation of prices and product analysis. And if you don’t have time or don’t know how to calculate, then know that at ALGORITM you can find a team that can analyze your product and what expenses you have. Be a winner! When you’re left with nothing… in fact, it’s just purchasing or calculation mistakes. Wherever you list your product, you have to pay a rent, a shelf fee or a commission.

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You want to find out more information about how you can develop your online business, how to present your products better. You can contact us at the phone number: 0758.888.892 or at the email addresses listed on the contact page