There was once a time when consumers and retailers relied on an eCommerce store rather than an actual store. This reliance was due to the amount of cost-saving capabilities. Nowadays, though, it just is not as simple.
eCommerce stores nowadays have to contend with a considerable amount of issues such as the mighty Amazon and the impending fightback from the high street. Real stores that once were in jeopardy because of online businesses have now begun to fight back.
The Majority of high street businesses can now compete with online prices over 70% of the time. There has never been a more critical time than now for eCommerce stores to apply new cost-saving methods.
Source: SkuVault
Contents
Reduce The Returns
With companies like Amazon setting the example when it comes to returns, this causes massive issues for small online businesses. Small online businesses can not afford to deal with returns, even though the product may be back with them, they are always left out of pocket.
The number one rule for protecting your product is the best packaging and labeling. You could take a look over at Enkoproducts for a good example of some fantastic looking quality labels and packaging supplies.
Having high-quality packaging helps prevent in-transit damage, and high-quality labels will allow the package to get to the desired destination.
Source: vivekseoexpert
Negotiations
If your eCommerce store is at a level where it becomes sustainable to order bulk shipments from a supplier, the best tool in your box is that of negotiation.
The most important things for a supplier are order size and how fast you pay. If you can make payments quickly and order large, this leaves a lot of wiggle room with the price. You can also work out constant discounts if you repeat order at regular intervals.
Asking for a discount of around 5% is usually the norm, and this can be a considerable saving over a business year.
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Processing Fees
Negotiating should not be set aside for your suppliers; you should also keep some of those negotiating skills back for your processing fees. There are some huge costs incurred when it comes to credit card processing fees, while direct charges from the bank cannot be moved, the processor can be haggled with.
You should take into account the length of time you have been dealing with the processor and use that to your advantage. Of course, the other option should your processor not want to budge, is to find one that will charge you less.
Source: Bcn Marketing Online
Be Marketing Savvy
While most companies have a marketing budget as a part of the advertising strategy, but using this budget well can sometimes be a challenge.
The marketing budget for an eCommerce business should be based solely on a digital campaign. You should track your previous marketing campaigns and always check to see what produced the best ROI.
Once you have tracked ROI patterns, you can combine them into a single marketing strategy and reduce your overall marketing cost.
Source: thebalance
Promote To Cut Costs
While it may seem counterproductive, applying discounts and promotions to your more unpopular items can help in the provision of more overall warehouse space.
Every eCommerce company holds one product that is less popular than anything else. It is often a great idea to promote the item, even at a loss, as it can free up valuable warehouse space for your more profitable stock.
Promotions more often than not also drum up brand new customers. So a little cost can be very beneficial to your business.
Source: ShipHero
Be Packaging Friendly
It is important to remember that having the right packaging can be essential in reducing costs. Some online companies rely solely on the postal service, and this will always require good quality packaging.
As we have mentioned, the guys over at Enkoproducts provide cushioning and transport labels that can be essential for protecting your product.
You should also take into account that you should use the appropriate packaging for the job. When it comes to boxes, it isn’t a matter of a single box that will do the job.
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Automation
Every eCommerce business needs an order management system of sorts. An order management system (OMS) helps monitor all orders from start to the end of the process and way beyond that too.
An OMS system will allow more in the way of automation and deliver time-saving answers to many corners of the business. The OMS will keep track of stock, track deliveries, and also keep customer accounts unified to save you time.
OMS systems send emails and are capable of doing the painstaking, arduous tasks that take up your valuable time. Thus freeing you up to apply your time elsewhere, and therefore saving you and your business money.
