Money-Saving Tips for Online Store
Do you want to open a small enterprise, but you don’t have enough capital to lease a store building or hire staff? Create an online store and see why many startups and brick-and-mortar companies are joining the online retail industry. E-commerce is the fastest and largest growing retail market, so now is the best time to jump on the bandwagon.
According to Statista, a portal of statistics and market research findings, the overall desktop online retail sales in the United States in 2014 was $236.9 billion. In a study on global consumer satisfaction in terms of in-store and online shopping, 83 percent of customers in the United States were satisfied with shopping online, while only 63 percent were pleased with their in-store shopping experience. In Europe, 80 percent of customers were satisfied with shopping online, while only 64 percent were pleased with shopping in an actual store. Consider these figures—think of the big market you can tap into to make your online store a profitable venture!
While to create an online store is cheaper than to set up a physical shop, you still have to monitor your expenses. After all, running a business requires ample finances for production and a steady flow of income for stability.
Here are some money-saving tips for online sellers like you:
1. Use uniform packaging materials for shipping and let customers choose add-ons for a fee.
As an online entrepreneur, your customers are not confined to one city or one country. Shipping costs will vary, and sometimes it can be difficult to estimate the exact shipping price. Many online sellers make the mistake of setting the shipping fee too low in order to attract more buyers. While this can work for local shipping, international deliveries can cost twice or thrice as much. Packaging materials are an indirect cost. Be consistent with how you pack your outgoing items so that you can buy materials in bulk, which is cheaper than buying in smaller quantities. If your customers want their items packed a different way (e.g., more bubble wrap, bigger box), give them the option to select additional packaging materials for an extra fee when you create an online store.
2. Set a fixed schedule for shipping and charge an extra fee for special requests.
The money you spend going to the post office or courier and back to your place is another indirect cost of shipping. Be systematic about your shipping schedule so that you can cut down on transportation costs. Instead of shipping items every day, why not make it twice or thrice a week? In your shipping policies, clearly, state that you can accommodate special off-schedule requests for an additional fee (and explain why).
3. Let customers pre-order merchandise that is expensive to produce or have a limited market.
If you make your own products—or design them and outsource production—and the overhead costs are high, make them available through pre-order. If you have too many products on hand with very low demand, you’ll end up putting them on sale. The money you spend could be greater than the money you earn. When you create an online store, highlight pre-order in your product description.
4. Create own online store
Your online business will run smoothly if you have people to help you set up and maintain your website. EasyStoreHosting is a reliable provider of e-commerce solutions. It offers tons of feature—from setting up and designing your online store, to integrating different payment and shipping gateways, to helping you get your desired domain name. Now that’s a good investment for any online entrepreneur!
