E-commerce is a fantastic way for businesses to tap into national and international markets, without having to maintain a tangible presence. While the lack of physical premises does represent financial savings, there are still a myriad of costs associated with running an online enterprise. To help online businesses cut down on costs we’ve put together a guide to key areas where savings can be made.
Host your own website
Why pay for a company to host your website when you could easily manage it yourself? Many businesses don’t realise just how easy and cost effective it is to host their own website! Look for companies that offer 24/7 support, a cheap dedicated server and uptime guarantees of at least 99.9%. cPanel interfaces are also a major perk, allowing site managers to easily tweak and control their websites, at their fingertips.
One of the easiest and most rewarding ways to cut costs is to upskill. There are plenty of online courses where you can learn to master simple and complex tasks that will eliminate the need to outsource to third party supplier.
Negotiate shipping deals
Most e-commerce stores retail tangible products which means that shipping is a major expense. Rather than settle for a mediocre deal shop around for savings. For example, buying in bulk almost always results in a discount, while major carriers are also open to negotiating rates and contracts for regular clients.
All online businesses should have marketing strategies in place to increase spends and attract new customers. While paid advertising can be effective, leveraging social media platforms such as Facebook, Twitter, Instagram and Pinterest can also be hugely valuable, and 100% FREE!
From processing orders and drawing up invoices to managing inventory and paying employee wages, using electronic systems can save online businesses a significant chunk of time and money. Rather than spend hours on end manually drafting, checking and sending content, let purpose built electronic systems do all the hard work for you. They may require an initial outlay of cash but at the end of the day they will soon pay for themselves.
Negotiate with vendors
A recent survey from Gartner revealed that businesses can save 20 – 50% on license fees, simply by negotiating with vendors. State-of-the-art e-commerce software doesn’t come cheap which means that it’s always worth asking for a discount or negotiating a better deal.
By keeping these simple tips in mind you should be able to cut down your e-commerce expenses and enjoy greater profit margins.