How to Reduce Your eCommerce Costs
When you can reduce the operational costs of running an eCommerce store, you can pass these savings on to the customer and generate more profit for your business too. This article will help you reduce eCommerce costs.
For eCommerce entrepreneurs, shipping is often one of the most significant costs your business will encounter.
Furthermore, today’s consumers are vocal about their shipping expectations. In addition to wanting a range of expedited delivery options, the majority of consumers expect free shipping to be included with their purchase.
High shipping costs and limited delivery options are top reasons for abandoned carts. By focusing on your shipping options, you can successfully increase your sales. For business success, however, you need to ensure that your shipping costs are reduced as much as possible, without negatively impacting the customer’s experience.
Fortunately, there are a variety of ways to minimize your shipping costs and boost your sales, including:
- Use fulfillment services
Fulfillment companies take the stress out of running an eCommerce store by storing your inventory and picking, packing and shipping products directly to your customers. This negates the need for you to rent your own premises and hire in-house staff, which reduces your expenditure.
In addition, fulfillment companies operate on behalf of hundreds or thousands of clients. This means fulfillment firms, like ShipJoy, can negotiate more attractive prices with carriers. When these savings are passed on to you, it means your shipping costs can be significantly reduced.
- Size reduction
The weight and size of your parcels play a major role in the cost of shipping. By reducing these as much as possible, you can minimize your shipping costs too. To achieve this, however, you’ll need to have a range of packing materials on hand and the expertise to ensure products are securely packaged using minimal materials.
While these could be a costly system to set up yourself, you can access these facilities straight away when you choose to partner with an established fulfillment service provider.
- Reduce shipping distance
The cost of shipping depends on a number of factors, such as the size and weight of the parcel, the speed of delivery and how far it needs to be shipped. Sending a parcel from Houston, TX to Dallas, TX, is cheaper than sending a shipment from Houston, TX to New York, NY, for example.
If you handle your own shipping, launching multiple inventory sites can be a major investment. For most eCommerce store owners, the costs involved make this an unattractive option. However, choosing the right fulfillment company will enable you to access multiple inventory sites and dispatch centers around the country. With your goods stored at strategic locations, you can dramatically cut your shipping costs and facilitate faster deliveries.
Minimizing the Costs of Running an eCommerce Store
Reducing delivery charges is a sure-fire way to attract more customers while minimizing operational costs ensures you can keep more of your revenue. Partnering with an established fulfillment provider could be the most cost-effective and efficient way for you to successfully grow your business and reduce the cost of running your eCommerce store.
For more information contact ShipJoy today.