How to save costs for your ecommerce business | 4 minute read
Thanks to advances in technology, more people than ever before are choosing to set up their own businesses and reap the many benefits that come hand in hand with selling in the world of eCommerce.
Providing you with a platform to sell a wealth of different goods and services, an eCommerce business allows you to connect and engage with your customers 24 hours a day, 7 days a week, 365 days a year. Of course, it also gives you the opportunity to sell on a global scale too.
However, as we are about to experience a cost of living crisis that is set to hit businesses too, it’s important that every eCommerce business thinks about ways that they can save money and keep costs down during these challenging and uncertain times.
To give you a helping hand, we’ve put together some ways to save costs for your ecommerce business:
Create a strategic marketing plan
First and foremost, when you are running an eCommerce business, it’s always important that you create a strategic marketing plan that will help you to boost sales, optimise awareness and generate a healthy return on investment, without it costing the earth.
With this in mind, you should think carefully about the type of marketing platforms that will best connect with your target market, whether that’s social media marketing, influencer marketing or through targeted content creation. Always try to invest as wisely as possible and don’t forget, there are lots of free marketing platforms and tools that you can also use.
Connect with partners and collaborators
Forging strong relationships with similar brands or companies can also be a great way to reduce marketing costs, especially if you both help each other out! For example, a simple shout out on a partner’s social media platform can not only help to generate new followers and boost engagement but it can also help to optimise your credibility too!
Focus on customer loyalty
Retaining your existing client base and recognising the importance of customer loyalty can also help you to keep marketing costs to a minimum. How? Think about it, it’s far more cost effective to champion your efforts into selling to an existing customer than it is trying to persuade a new customer to buy your product of service.
And, there are a whole host of impactful tactics you can use to do this including social media marketing, email marketing, newsletter and even offer your existing customers loyalty discounts so that they feel valued and keep coming back to you.
Keep your packaging costs to a minimum
Everyone loves pretty packaging, right? However, this certainly won’t do your bank balance any favours. Packaging can be extremely costly, especially over packaging, which can quickly lead to lots of other costs to cover. Remember, the vast majority of the time, packaging ends up in the bin.
With this in mind, you should choose the most affordable option for your product, use eco-friendly materials which can be recycled and make sure that the packaging you choose fits the product. Cutting costs doesn’t mean that you have to compromise on quality.
Cost effective delivery services
Although many online business owners usually pick the most popular delivery services, this isn’t going to help you to save money. Instead, you should shop around when it comes to finding the post cost effective delivery options, without compromising on quality of course or customer experience!
Get each company to give you a quote based on price per kilogram, price per item, delivery speed, and customer reviews. And remember, always check reviews.
Negotiate with suppliers
Finally, never be afraid to negotiate with suppliers, whether you’re looking for a new supplier, or even looking to lower your costs with your existing supplier, negotiating is what makes the world of business go around.,
If you build a good supplier-buyer relationship, you will find that most of the time, they are more than happy to offer discounts, especially if you are making bulk orders. You should also negotiate on freight fees too.
Get in touch!
Here at Unicorn Accounting, our team of specialist e-commerce accountants is happy to chat about all of your eCommerce accounting needs. So, what are you waiting for? Let’s talk and maximise the growth of your e-commerce store.