How does QVC make money? QVC Business model

How does QVC make money?

In this article, we will see How does QVC make money? and its business model.


QVC is a subsidiary of Quarate Retail Inc. or Group. It stands for quality, value, and convenience. The company was founded by Joseph Segel in 1986. It has a hosting service that works 24 hours a day and it is used to showcase the products, greetings, etc.

It is an online television business network that airs for free in America. It hosts shows for 24 hours a day and allows individuals, businesses, and celebrities to host their shows or products. It has platforms where people can purchase the products shown to them.

It is a television-based home shopping network. It has both online and offline stores and outlets. It is one of the biggest brands in teleshopping. It has acquired its competitors and grown its revenue in the past years. 

Profitability of the company

QVC has grown its revenue shares drastically. According to one of the popular sites, Statistica, there is an increase of about 1 billion dollars in the overall revenue as compared to the previous year. 

Although it does not collect commissions from the shows being hosted on its platforms it takes the margin from the sales done. And online sales contribute to more than 50 percent of its revenue shares.

How do they acquire products to be sold out?

The Teleshopping Network has collaborated with wholesalers and has around 500 vendors with them. They can distribute the products just after the hosts end their show. They hire vendors from trade fairs. And are very selective in choosing them. 

Every day, they get thousands of applications from vendors and wholesalers but they have selected only 500 till now, who provide the best quality of products.

Steps to acquire Vendors for Products

Step 1. Vendors apply to the company

Step 2. The host offer some merchandise

Step 3. Some of them are then selected from craft shows, fairs or trades.

Through all these ways vendors are chosen but the selection criteria are not that easy.

According to Medium, QVC targets women consumers as they have mentioned on their platforms that most of their buyers are women. So they choose the product vendor accordingly. They asked a lot of questions before hiring and gave a lot of details about the profile they wanted.

And other than this the most important part is the choice of products or product selection. As the products need to be shown on the television so it has been appealing. The product should look nice, there should be something interesting in it, a compelling story which can be a good sales pitch.

QVC does not reveal much information about its sales percentage and earnings etc. And the details about the consumer. It just showcases its products as per the preference of women. Since the model is shopping from the television that means less mobility. 

Working Environment inside the Company

The company provides a great working environment. There is full liberty and independence. They make sure that no work suffers and everything should work properly. From covid onwards, they have made their systems equally efficient to be used from home. According to the people working there, the space for the work is exciting as well as dynamic in nature.

  • The platform has evolved itself over the years from a hosting service to retail business online shops and outlet stores. Most of the revenues come from purchasing the products online. Online sales contribute to more than 50% of its total revenue share. 
  • QVC has introduced a new concept for shopping from television. QVC also offers retailers to do their retail business both offline and online. And this is also a potential revenue for QVC, as it keeps around 49% of the total money.


To answer the question in simple words of how QVC makes money is through online sales. Online sales are their major revenue source and now they have outlets and offline stores which increases their revenue shares. As there is no shortage of products and stores are also expanding with every passing day. 

It has listed the categories in which it allows the sale of products. It has also listed the products which it does not allow. So one can easily make out the profit margins and the sale price. The popularity of the platform is quite high in the country and it also calls famous personalities and celebrities to host the show or demonstrate the products. 

One peculiar feature is that it allows only those people on their platforms who have their following on their social handles or sell the products through their channels. 

Frequently Asked Questions

Q.1) How much money does QVC make?

Ans. According to the Statistica QVC has generated about 11.47 B $ in the year 2020. In 2019 it was 10.98 B $ so there is a clear increase in the revenue of QVC. And most of the sales come from the product sold after the shows. Since it is the major source of income. 

Q.2) Do QVC hosts get commissions?

Ans. QVC does have some hosts but they do not make any commissions out of it. The hosts make a lot of money. Some of the popular hosts make about 2 to 5 Lakh dollars. It hosts game shows, concerts, online parties, or meetups. The money made through these shows goes to the host. 

Q.3) Does QVC pay well?

Ans. The average salary of a customer host representative in a QVC starts from 65,000 $ per year. For a director, it may go till 2 Lakh $s. An Equipment Operator gets 16$ per hour. And a simple warehouse associate makes 26 $ an hour. 

Other than this the host, vendors and some other people involved also earn a good amount. As QVC does not take Commission for hosting shows on its platform.

Q.4) How much does QVC make per product?

The cost depends upon the types of products. it takes 49% of the total revenue share generated from the sales of the product.  

How does QVC make money? QVC Business model

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