Margin Mastery: Cutting Costs with Multi-Channel eCommerce Tools
More businesses within England and Wales have failed within 2024 than at any other time in the past 30 years. With the rising costs of energy, staffing and raw materials, companies must keep on top of their margins to avoid becoming part of these statistics. However, cutting costs without compromising on quality or customer satisfaction can be a difficult balance to reach. Multi-channel eCommerce tools can play a vital role in achieving this balance. Let’s look at how…
Centralised Inventory Management
Managing inventory across multiple sales channels can be a logistical nightmare, leading to errors, overstocking, or stockouts. Multi-channel eCommerce tools like GFS Channel Connector centralise inventory management, ensuring real-time synchronisation across all platforms. In simple terms, it means you have the right stock where and when you need it. You’ll eliminate the need for staff to manually track inventory, thereby reducing staffing costs and any costs associated with human error.
Efficient Order Processing
Handling orders from various sales channels individually not only takes time but increases the risk of mistakes. Multi-channel tools consolidate orders into a single system, streamlining the process from order placement to fulfilment. For instance, GFS Selector automates label printing and tracking, ensuring that orders are processed quickly and accurately. By freeing up your team from manual tasks, you enable them to drive sales, maximising the efficiency and throughput of your business.
Optimised Shipping Solutions
One of the highest basket abandonment rates at checkout is due to shipping fees. With fuel prices rocketing, shipping costs are another area that has begun to significantly impact profit margins. One technique businesses employ to overcome these abandonments is to increase product prices, and 60% of eCommerce companies cite “free shipping with conditions” as their most successful marketing tool. However, higher product prices can make products appear less competitive, reducing sales volumes. To overcome these potential issues, optimising shipping solutions through a multi-carrier provider can be a great option. GFS’ multi-carrier solutions provide access to over 1,000 delivery services, enabling the most cost-effective option to be chosen based on destination, package size, and delivery speed. By leveraging GFS’ buying power through their exclusive bulk shipping rates, better rates are negotiated with carriers, logistics are optimised and product profit margins remain intact.
Streamlined Returns Management
According to the National Retail Federation, last year’s online returns accounted for “approximately $212 billion,” amounting to 16.5% of all online sales. These numbers speak for themselves in how crucial handling returns efficiently is for maintaining customer satisfaction and managing costs. GFS’ Returns Management Solutions provide a seamless experience for both the customer and your business. A paperless returns portal and multiple return options simplify the process, reducing the burden on your customer service team. This allows you to minimise wasted manpower while encouraging repeat business.
Advanced Analytics and Reporting
A recent study by BARC found that businesses able to quantify their gains from analysing data report an average 8% increase in revenues and a 10% reduction in costs. Multi-channel eCommerce tools such as GFS Reportor provide comprehensive analytics and reporting capabilities, offering insights into measuring performance against key KPIs. Simply put, up to date analysis and reporting on your business means more informed decisions are made – saving you time and money!
Unified Customer Experience
Providing a consistent customer experience across all channels is essential for building brand loyalty and awareness. Reliable and predictable services create peace of mind for your customers. With repeat customers spending 67% more per order than new customers, keeping the customers you have is vital! GFS’ Multi-Channel Integration ensures that customers receive the same level of service, whether they purchase from your website, marketplace platform, or physical store. Creating greater trust between you and your customers cuts the cost of having to go out and find new customers — you just have to keep the ones you have happy! Research done by Frederick Reichheld of Bain & Company (the inventor of the net promoter score) shows increasing customer retention rates by 5% can increase profits by 25% to 95%. This means you’re cutting operational costs and increasing purchasing value.