What’s the best way to create your business model?

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
MBA Mondays: Revenue Models – Commerce – AVC

Retailing is a tough business. The difference between what you buy the product for at wholesale and sell it at retail is called your gross margin. Amazon’s gross margin ranges between 20% and 25% depending on what time of year it is. The holiday quarter brings the lowest gross margins because retail makes up a larger perecent of revenues. At Amazon’s size, a 25% gross margin turns into a lot of money. But a smaller online retailer can really stru… (read more)