The amount of money generated by e-commerce companies continues to grow as more and more people use the internet for a great percentage of their investments, from small acquisitions to huge spends. On 1 December 2014 (Cyber Monday), a record number of online sales were recorded as more than $2 billion in a single day. Here, we offer seven tips to cut your e-commerce tips and make your online shop even more profitable.
Complete Your Own Accounts
Many e-commerce company managers dread the prospect of completing their accounts, tax forms and VAT claims, and are tempted to outsource the task to an expensive professional. Whilst they can lend their expertise, their services may prove to be the difference between breaking even and making growth-supporting profit.
Completing your own accounts can help cut business overheads and make the organisation more profitable. The free software from Wave Accounting can guide you through a wide range of important accounting tasks – helping you accurately complete your company’s financial obligations.
Cut Shipping Costs
One of the biggest overheads for the majority of e-commerce companies is the delivery costs attached to sending out products. Cutting these costs can help you increase profit margins or pass on these savings to customers – making your business more competitive.
This useful tool from Rapid Parcel can help you determine the most cost-effective courier service for your particular needs.
Utilise Cloud Technology
The implementation of cloud technology can help remotely syncornise all parts of the business without the need for costly, physical integration. Secure cloud services such as OneDrive and Dropbox make it possible for you to store and share files and documents. These high-quality services can also negate the costs of setting up a private file sharing platform.
Focus on Existing Customers
According to eConsultancy, 70% of businesses have discovered that it is more cost-effective to pursue existing customers than seek new custom. This makes it important and financially prudent to market your products and services to existing customers more actively than trying to actively attract first-time buyers.
Behavioural Retargeting is a form of internet marketing which concentrates on attracting customers based upon their previous online activity. This directed form of marketing helps to increase return on investment in many circumstances.
Seek Cheap Assistances
Having an extra pair of hands around the office or warehouse can help improve the logistics of the company and take pressure off yourself and the existing workforce. The Government is currently offering a number of apprenticeship incentives for businesses to encourage them to take on a young, inexperienced worker on an introductory wage. Some companies who partake in this scheme may be applicable for a £1,500 grant to cover the wages of the apprentice.
Use Skilled Freelancers
Developing a successful e-commerce company requires a large and varied skillset. Rather than unskilfully attempting these tasks yourself, your company’s performance and reputation could benefit from the utilisation of skilled freelancers’ abilities.
Online freelancer hub People Per Hour can introduce you to a wide selection of skilled individuals who may be able to meet your specific requirements and bid for the job – check out the site here.
The environmental benefits are not the only advantages of going green. Investing in products which have the Energy Star label could save you significant amounts of money in the long term. The more energy efficient your operation, the lower your energy bills will be at the end of the month.