Is PPC viable for my E-commerce store – bids seem too much?

I am looking into starting an E-commerce store and am looking to see if PPC is a valid form of advertising.
Is PPC advertising viable for an E-commerce store that has a small profit per customer. I am trying to work this out.
Looking at some keywords on adwords keyword tool, bids are in the region of £1.00 for most of the keywords i would wan’t to bid on.
If I estimate that out of 100 clicks 5% will actually become a paying customer, and on average each customer will give us a profit of say £5.00, I would have to spend £100 to get 5 X £5.00 = £25.00?!
Is this right? am i working this out wrong?
I would have to lower my bid price to £0.25 to just break even. And what would that give me?
Is there anything im overlooking or is it just fact that adwords are only for the big […]

See original post by lesaurus