With reports suggesting that 95% of all Britons are now using the internet to buy goods and services, there is more potential AND competition for all e-commerce retailers looking to maximise the profitability of their company than ever before.
Streamlining e-commerce operations can help companies save significant amounts of money, increasing their potential to pass savings on to customers and attract a larger buying audience. Here we look at five ways to cut e-commerce costs without cutting the quality of the products or the service.
Account for Yourself
Accounts, tax forms and VAT claims are amongst the most hated tasks for many business start-up owners, but they are unfortunately necessary. Outsourcing this task to a trusted professional can seem the most sensible option, but it is possible to complete your full accounting responsibilities yourself with the help of Wave Accounting software.
The software is designed to be used by people with little-to-no accounting experience, helping them complete all the accounting jobs, necessitated by running a business. Furthermore, completing your own accounts can give you a greater insight into the company’s financial health and help you decide upon future budgets.
Cut Shipping Costs
Delivery and courier services are traditionally amongst the largest overheads for an e-commerce company. Whilst the company may save significant amounts of money by not investing in a brick and mortar presence, the courier costs could be the difference between a successful venture and failure. Selecting courier services which save the company money whilst not affecting the speed or reliability of the service can help grow the profit margins significantly.
Rapid Parcel is an online courier comparison tool which allows users to input the size, weight and delivery address of the items to be shipped and then details the cost of using the major courier services. This can help business optimise their delivery service and cut costs.
If you and any partners are operating the business remotely, implementing a cloud storage system could help make the sharing of information and vital documentation quicker, more efficiently and cheaper. Secure online cloud services such as OneDrive and Dropbox provide the platform to store files and documents remotely to share with applicable parties.
This can cut the costs of setting up a private file sharing platform for the business without compromising the quality of service.
Focus on Existing Customers
It has been reported be eConsultancy that 70% of businesses believe it is more cost-effective and profitable to retain customers than it is to actively chase a new audience. Increase your output aimed at existing customers and their loyalty to generate more activity and potential sales. This could help retain a level of sales whilst reducing the cost of marketing and advertising.