Hey guys, I have what I think can be a good idea, for a low ticket product in the card space. Think Birthday cards, friendship cards, etc.
One thing that keeps preventing me from pursuing this idea, is the thought of how difficult it must be to make a profit. Being a low ticket item ($10-15 MAX), how do card sellers manage to take in a profit online? It's hard to increase AOV for side gifts like these since people usually buy them individually (especially if the card is customized).
I'm sure big card sellers like Boomf.com do turn a profit, but how did they even get to that point? If I sell a card for say, $12 wouldn't the cost to manufacture + shipping + marketing reduce my margins to a laughable amount? If the only way to make a substantial profit is to sell in huge volumes, then getting to that point means that I must be operating at a loss for a long time before I even think of turning a worthwhile margin.
Any thoughts? The same question applies to most low-ticket items.