There’s no doubt that the global ecommerce industry has grown steadily since 2012, with the UK blazing a trail for others to follow in this marketplace.
In fact, the value of this market peaked at £137.38 billion last year, whilst growing to account for 16% of all retail sales nationwide. This increased from just 9% six years ago, and similar growth is forecast for the near-term.
Whilst a growing number of entrepreneurs are establishing online businesses in the modern age, however, it’s important to take proactive steps towards reducing your operational costs. Here are some steps to help you on your way:
Reduce Parcel Delivery Costs
Let’s start with the basics; as packaging and shipping your goods represents the single biggest cost for your venture.
In fact, shipping costs can accumulate quickly over the course of the year, so you’ll need to reduce these through a number of different methods.
For example, you can use comprehensive resources like Parcel2Go to compare different couriers and select the best quote in relation to the shape, size and weight of your shipment. You can also send shipments in bulk where possible, as this will incentivise couriers to offer you significant discounts.
This can also help you to reduce your vehicle costs and even negate the need for a company fleet, so it’s well worth consideration as a business-owner.
Implement Technology Automation in your Business
Whilst many businesses have tried and failed to go paperless, there’s no doubt that there’s a continued shift away from using traditional documentation and filing methods.
Your business needs to follow this trend, by embracing modern software and PC applications that can automate aspects of your business and save you considerable sums of money.
There’s a variety of accounting and invoicing software packages available, for example, which can reduce man hours in your firm and eliminate human error. Sensor technology also enables you to track your deliveries and improve customer service, and you can often tap into the programs operated by the large couriers.
Outsource Lesser Tasks
Another effective way of cutting costs is to outsource non-essential and non-strategic tasks, to small and specialist service providers that can really add value.
If you need to develop your I.T infrastructure, it’s often more cost-effective to hire an independent technician or company to work remotely than it is to pay a full-time engineer to operate in-house.
In simple term, this reduces equipment and long-term salary costs, whilst it creates a flexible and motivated workforce in which each individual employee is focused on their precise role.