You are now reading:
Revealing cost optimization solutions for online business, achieving "massive" sales
After the Covid-19 pandemic breakthrough, Internet-based purchasing has become more familiar to us. Most household businesses and shop owners gradually convert to this type of business. Nonetheless, the shop owners encounter a significant challenge, the huge operating costs. Therefore, knowing how to allocate expenses efficiently is the ideal resolution for letting your business grow exponentially. Please follow the shared article below and decide the most cost-effective methods for you!
Need-to-know expenses when your business goes online
The Covid 19 epidemic has severely impacted financial resources, causing most companies and home businesses to struggle hard with various components of production and trading costs. Here are some charges that affect web-based merchandising.
Products investment costs
The first and worth noting issue is the expenses of goods investment. This cost accounts for the majority of the organization's invested capital. You should carefully consider the commodity import plans. There are 02 strategies that shop owners possibly opt for:
- Purchasing finished goods directly from manufacturers
- Importing raw materials to produce products themselves
Brand development costs
After the strategic commodities are determined, the businesses should manage and pay attention to the branding fees. Besides, the packaging and labels of goods are necessary to captivate the consumers' interest.
Enormous companies mistakenly believe that just quality goods are enough for the market's needs. However, commodities' qualifications associated with eye-catching packaging shall create high chances for the products gladly accepted by the customers, and significantly increase the market share and the scale of operations.
Hence, it is a smart choice that businesses and start-ups should carefully calculate while being willing to pay for brand development charges.
Marketing and advertising costs
In this day and age, it is indispensable for companies to promote their products via social media such as Facebook, Instagram, and Youtube. No matter how your business is large or small scale, effective commercials enable your products to reach potential customers easily.
In conclusion, spending money on advertising plans is needful. However, it is a must to conduct research carefully before implementing marketing strategies. Additionally, consulting experts or hiring advertising agencies are selections every business can consider. After all, this will help you to establish a proper procedure, be cost-effective, and prevent time-consuming.
Transportation costs
Most companies go online using e-commerce platforms to run their trading activities. This worldwide connected network allows us to shorten shipping time.
On the other hand, buyers are less likely to prefer a product that is low value with a high delivery fee.
Therefore, shop owners should manage shipping policies well. There should be support or discount programs to reduce delivery expenses and keep clients purchasing, especially striving to improve customer loyalty.
What are solutions for optimizing e-commerce business costs, and boosting sales revenue?
When allocating the earlier mentioned charges, UOB suggests some ideas for effective operation expenses optimization.
Finding your niche market.
The fact is that companies and household businesses participating in and exposed to Internet-based merchandising contribute to an equal division of the segment market. As a result, it will strengthen and develop your company's position when you carve out a niche market.
When finding a niche market, online business owners need to be fully aware of the following general information:
- Unique value proposition over competing generalists
- Small number of customers but high loyalty
- Stable and sustainable consumer segmentation
- Not too many industrial competitors
- Potential market with strong development
- Easy to close the sale
Omnichannel strategy
Another solution that UOB highly recommends is omnichannel. So, why should e-commerce businesses choose this way to optimize costs?
The omnichannel plan benefits businesses by expanding their scale without wasting invested capital.
Specifically, once companies build up a strategic channel and complete the connection of all touchpoints, they can integrate content enabling customers to move seamlessly between the multi-channels. This merit plays an essential role in enhancing the company’s scale, establishing credibility with customers, heightening brand recognition, etc.
Hence, the omnichannel strategy is an ideal resolution if businesses aim at increasing their market share and reaching target customers easily.
Doing sales promotions
It is the buyer psychology that they are very fond of discount programs. During a flash sale campaign, they can comfortably spend money to purchase goods without overthinking. Therefore, online businesses should consider the appropriate time and market situation to make attractive promotions.
Below are some helpful suggestions that online store owners can refer to:
- Buy more, discount more: For instance, customers who buy 02 or more products will get 20% sale off, 30% sale off for 03 products, etc. Even if it is not a big promotion, it still stimulates and increases purchasing.
- Using decoy effect: Offering 02 options for consumers to choose from, and when they are confused, give them the 03rd product being better than the previous 02 ones.
- Giving gifts with brand names (logos, slogans, etc.): If your store sells beverage products, you can present buyer cups with logos, images, etc., as a gift. It is normal when customers buy a commodity just because they like the accompanying gift. Therefore, you should put more effort into presents to encourage sales.
Selecting the best capital sources for business.
Capital is considered the backbone of companies and home businesses. Therefore, optimizing capital is also maximizing profits and minimizing costs effectively. To decide on the right source of finance, you can evaluate the listed factors as follows:
- Competitive interest rates
- Fast funding time
- Clear and reasonable repayment due time
Optimizing Internet-based merchandising costs with UOB BizMerchant
UOB BizMerchant is a pioneering loan solution for e-commerce businesses. This program enables you to constantly generate the capital needed for running your companies smoothly.
For businesses struggling with finding a source of capital, UOB completely meets your needs with a credit limit of up to VND 1.6 billion. Specifically, with the advantages of a short disbursement period and simple procedures, UOB BizMerchant is a good partner accompanying you on the road to conquering online merchandising.
We hope that the above sharing will help you adequately understand the indispensable costs since your business goes on e-commerce foundations. In addition, we also suggest some resolutions for operation expenses optimization and maximizing profits. Please do not hesitate to contact us for immediate help if you have any questions or problems with business capital!
