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How to reduce e-commerce operating costs?

Convenience, ease and price are the main factors that migrate customers from physical stores to e-commerce but the question “How to reduce e-commerce operating costs?” remains the same…

Above all, the e-commerce companies must meet consumer expectations. However, offering the best product, service, customer service at the same time while enabling the best price is a difficult balance to maintain than it seems.

There are some operational expenses that can be reduced in an e-commerce company without losing the virtues that consumers are looking for.

Different e-commerce companies have different needs

It is always necessary to reassess the effectiveness of the use of operational processes. It is often that the companies invest in various tools thinking those would save them and yes, many of these tools are effective and fundamental, but they do not fit in all cases.

As the topic says, each online store needs specific functions. So consider all your tools, evaluate them again if that is really effective in your e-commerce company. It would be a good idea to set KPIs and see how they perform.

You need integration more than anything

You already use many systems and tools together, but are they really integrated? Is the operation running smooth? ERP, payment gateway, data analytics, marketing platform, logistics tools and spreadsheets are some of the mechanisms that can be very efficient but they should not walk alone.

Think of your e-commerce processes as a whole, so all these tools must be integrated into it. There is no point in having several features if they are not integrated into the shop and it is not functional but only enhances your service to a point.

Without integration, there is no service dynamics and it turns out to be a “no return” investment. This integration reduces cross-sector impediments, saves time by reducing time to rework on different systems, optimizations. Integration will help all your store processes from the moment the product enters inventory until its delivery to the consumer.

Never stop looking for better

Using a new service or a tool to automate your business or ease processes shouldn’t stop you for doing research to find a better solution. On the contrary, it is the exact moment when you should check if everything is working fine and see how it is helping your online store to evolve.

Automation is good, but is it tailored to your needs?

Assessing the movement of your inventory is critical to your company’s financial health. The inventory management will make it possible to create an effective plan as the automation can help your store, but it should also be tailored to your needs as it can prevent wrong decisions as well.

What about the logistics?

When all processes in a store are mapped, operational failures are reduced and savings can be done. When you have good logistical planning and efficient supervision, shipping processes work better with faster deliveries and, consequently, lower product return rates.

Create a flowchart to grow

There will be moments when you may think, “This is it, my store reached its peak point and we can’t grow”. Don’t lose any motivation yet. In fact, to know about what your next step will be, to perform planning in the best way, develop a complete flowchart, organize all processes, and try to address every movement in the company. This way, internal communication will be more efficient. You will be able to find operational failures and create the best working method.

Operational errors causes unnecessary costs. Thus, mapping all your e-commerce processes can help you find pain points, and by solving them you can lower your costs and leverage your sales.

Investing for growing is good, but only when carefully planned. And flowcharts can be a crucial method to find out how to reduce your e-commerce operating costs and save up more for investing.