Electronics E-commerce Benchmarks

Why these numbers look like this

Electronics runs on razor-thin net margins (5% average) because price comparison is frictionless — customers can check Amazon, Best Buy, and your store simultaneously, forcing race-to-bottom pricing. The 8% average refund rate understates the real cost: warranties, technical support, and product obsolescence within 6-12 months create ongoing margin erosion that doesn't show up in standard metrics. The winners in electronics either bundle services (setup, extended warranties) or focus on niche categories where comparison shopping is harder.