Running an eCommerce business is anything but cheap. While your goal is to make a profit high enough to make it worth it, you should still look at ways to reduce costs. Luckily, there are lots of areas of the business where you can cut back on spending. Doing so may be what catapults your eCommerce business to success. So, use the following tips on saving money and the profits to grow your business even further.
1. Outsource Order Fulfilment
Hiring a team to pick, pack, and ship your eCommerce orders is expensive. However, doing it yourself isn’t viable – especially if you’re busy. Luckily, there is a simple solution to save money and time: e-commerce fulfillment. Outsourcing is one of the best investments for e-commerce fulfillment. You don’t have to spend your money on employee wages by getting a team of people to handle your orders. Plus, you can be sure those orders get delivered quickly and efficiently, making your customers more satisfied!
2. Reduce Returns
Every eCommerce business will experience a customer returning an item at some point. It’s a normal part of the process; you shouldn’t be disheartened if it happens now and again. However, too many returns will quickly drain you of money. It’s not just the shipping costs you’ll have to deal with but also the lost order. Fortunately, there are some simple but effective ways of preventing too many customers from returning their items.
Extend Returns Policy
You might think that the best solution to fewer returns is a shorter timeframe where customers can return their items. However, that’s not the case. If you have a 30-day returns policy rather than a ten-day one, customers are more likely to keep their items for longer, even if they’re considering a return. By the time the thirtieth day comes around, the chances are returning won’t be on their agenda!
Be Clear with Images and Descriptions
Many customers return items because it doesn’t match what they expected. Often, this is due to the images and item descriptions not being clear enough. By being transparent with the product page, customers will know what to expect and won’t feel disappointed by their order. Even simple changes like taking higher-quality photographsor adding in some more details can be enough to make a difference. Don’t forget to be especially clear on sizes!
Avoid Sending the Wrong Order
Sending the wrong order is undeniably something you already avoid. If you still send the wrong order from time to time, though, it’s time to reassess your processes to ensure it doesn’t happen again. This is another area where order fulfillment comes in handy. By using a specialist company to fulfill your orders, fewer mistakes occur. Plus, you don’t even have to worry about handling returns when they inevitably happen!
3. Calculate ROI on Your Marketing Campaigns
You need a marketing budgetto market your brand and products. That doesn’t mean you should throw money at all marketing campaigns. Instead, think carefully about your marketing budget and allocate more towards the marketing strategies that work. To do that, calculate the return on interest on all your campaigns. By doing so, you’ll see exactly what works, and with that information, you can allocate more of the budget toward successful campaigns and less toward unsuccessful ones.
4. Reduce the Amount of Packaging Used
Does a lot of your eCommerce budget go toward packaging? If your answer is “yes,” then it’s time to reconsider how much packaging you use (and what type). Ideally, choose cost-effective, minimal, eco-friendly packaging that secures the products without waste. Paper is one of the best materials for eCommerce packaging, as it is cheap and doesn’t contribute to plastic waste. Your customers will surely appreciate the absence of plastic!
Cutting back on eCommerce costs means you can spend money in areas of the business that will help it grow. For example, you could allocate a higher budget for a more robust marketing strategy. Alternatively, you could put more money aside for your creative budget, allowing you to design a new product to attract more customers. In the end, reducing costs means having more money, with which you can secure your business’s success.