eCommerce is one of the best and most effective ways to earn windfall returns on investment. The online platform offers the perfect tool to attract great number of qualified leads. The digital arena is full of online marketing tools that can be harnessed to generate large number of online leads. Social media advertising, search engine optimization, online forums, press release sites, and business directories are just some of the few online tools that can be used to funnel maximum number of visitors to the site.
One of the greatest benefits of starting up an ecommerce store in Australia is that it does not require investing large amount of capital. With just a few hundred dollars, individuals can set-up an online store offering goods and services to the consumers. Moreover, the overhead costs are little as compared to running a brick-and-mortar physical store. And the best part is that there are various ways that entrepreneurs can cut online eCommerce costs thereby boosting online revenues.
Below we have listed 5 effective measures that eCommerce businesses can implement to cut overhead costs.
1. Streamline Supply Chain Distribution Process
Streamlining supply chain and distribution process is one of the best ways to cut online costs. Incorporating supply chain management measures such Just in Time Inventory (stocking just the required products), integrated supply chain methods, vendor managed inventory are some of the ways online companies can streamline their supply chain process and earn above average return on investment.
2. Conduct Regular Inventory Count
Regular tallying of inventory helps in reducing eCommerce costs. Inventory counting allows firms to determine which products can be offered to the customers at a discount, and which products need to be replaced. By combining accurate inventory count with sales trend software, eCommerce companies can also find out sales patterns that will guide them in placing orders in the future.
3. Set up Reorder Alerts
Setting up reorder alerts will ensure that the supply is always up to date. This saves undue delay in fulfilling customer orders. In addition, the company doesn’t have to refund amounts submitted by the customers due to being out of stock. The transaction incurs a certain fee that have to be paid to the online payment company.
4. Eliminate Excess Merchandise
Another great way to save eCommerce costs is to eliminate excess merchandise. Storing inventory takes up additional space that incurs costs. Eliminating excess merchandise can help in reducing storage costs. Some of the ways that the unwanted merchandise can be eliminated include offering the merchandise at discounted price. Bundling the items together and offering to physical brick and mortar seller. And donating excess inventory to charity thereby benefiting from a tax write off.
5. Utilize Energy Efficient Practices
Online eCommerce businesses can use energy efficient practices to reduce online costs. Turning off lights and reducing cooling and heating can greatly control the energy bills. In addition, buying energy efficient products and installing solar panels can significantly reduce monthly utility bills.
In a nutshell, online businesses offer great opportunities to earn above average return on investment. Implementing the above methods will allow further reduction in online operational costs thereby resulting in maximized profits from the online business.