Post by nurnobisorker14 on Oct 30, 2024 1:48:54 GMT -5
Not so long ago, the e-commerce market was a more attractive option for buyers and sellers than traditional stores. However, everything changed at once due to several things: the arrival of Amazon, increased competition, the fight against traditional stores, whose prices are 72% comparable to prices on the Internet. This situation led to the need to find new ways to reduce costs. Today, this is a necessity that allows sellers not just to “survive”, but to build a successful business that brings in a good income every year. This material will consider the issue of reducing costs in an online store, including typical mistakes, as well as ways to solve them.
Contents hide
1) Typical mistakes when cutting costs
2) TOP 10 ways to reduce costs
2.1) Saving on the tax system
2.2) Saving on rental space
2.3) Saving on equipment and furniture
2.4) Saving on platform creation
2.5) Saving on assortment
2.6) Saving on suppliers
2.7) Saving on employees
2.8) Saving on advertising
2.9) Saving on buyers
2.10) Savings by reducing the number of returns
3) Conclusion
Common mistakes when cutting costs
The first thing that is important for a seller to understand if he decides to reduce costs in an online store is that in no case should he reduce all expenses at once. It bulk email campaigns is important to maintain a balance in everything, because only thoughtful, correct actions can lead to a positive result. Otherwise, optimization will not only not help increase income, but will also cause even greater losses and worsen the company's image. So, here is what you definitely should not save on:
Product quality. Buy cheap and sell expensive - this is the basis for building a successful business. However, in the case of purchasing low-quality goods and then selling them as good things, this can lead to sad consequences. First of all, this concerns the damage to the seller's reputation: people are not stupid and can easily distinguish a high-quality product from a fake. In addition, the seller can lose solvent customers: wealthy buyers will not buy a dubious product, even if it is in a shiny wrapper.
Registration. Every aspiring entrepreneur should keep in mind that operating without proper registration (individual entrepreneur, LLC, etc.) is a very bad idea. Of course, some people manage to continue their activities for quite a long time, but the result is still logical, because the tax office copes with its duties perfectly. In addition, suppliers and customers themselves treat such stores with great distrust.
Employee and. There is no need to hire a large number of personnel, especially at first. It is enough to have 2-3 reliable workers who will have knowledge, skills and experience behind them. A competent manager will not fire a smart employee, because these are the people who make a significant contribution to profit generation.
Promotion. Of course, there is no point in spending a lot of money on marketing activities. In order for the money invested to give positive results, first of all, it is worth understanding your audience, studying it and analyzing it. This approach will allow you to understand how to influence the moods and desires of buyers. Also, you should not completely ignore promotion, because this is a sure path to stagnation and loss of old customers.
Optimization. Good work is great, but efficient and perfect activity is something completely different. Today, there are a huge number of services: CRM systems, sales scripts, warehouse accounting systems, call tracking, analytics systems, etc., which not only make work easier, but also optimize all processes, increasing its efficiency. Automation is a cheaper option compared to manual labor.
TOP 10 ways to reduce costs
The e-commerce market has many advantages, which concern both inexpensive entry and quick promotion, and good prospects in general. However, a crisis and other shocks can cause irreparable damage to any business. Poor sales create difficulties for stores of any level, so in such a situation there is a need to take decisive measures that will help solve the problems that have arisen. One of the main measures that should be taken is to reduce costs. Below we will consider the main ways to do this.
Saving on the tax system
As you know, there are different tax systems: OSN, STS, UTII and PSN. Small businesses most often prefer the simplified form, considering it more profitable. You can make a simple comparison: pay 6% on "Income" or 15% on "Income - Expenses".
The first type will be a good choice for companies with their own expenses up to 60% of the cost price. This usually includes companies operating in the service sector and stores that have recently entered the market. In this case, there is no need to provide tax authorities with a report on each expenditure of funds; it is enough to record all income in the relevant documents.
It is important to keep in mind that in the case of this form of taxation, the payment of the minimum tax is required, even in cases where expenses exceed income!
Another type of taxation is most often preferred by large online platforms or stores that provide products on credit. Bank fees and delivery can be added to expenses. In this case, each expense is taken into account separately. It is important to understand that each expense will require a fee.
Saving on rental space
At the beginning of your journey, you can even make sales from your own home. This approach involves hiring employees remotely: the same sales manager or courier does not need to be in the office, because you can keep in touch using specialized services, which will be not only fast and convenient, but also effective. In addition, with this method, you can save a lot: there is no need to pay rent and utilities, there is no need to buy equipment and furniture. Only over time, when the work begins to bring profit, you can rent a room or buy an office.
Increase your sales with Mokka
Saving on equipment and furniture
If an entrepreneur decides to rent a space, the best solution for him would be to save on a PC, printer, online cash register and other equipment. There is no need to buy expensive equipment, you can give preference to simple but reliable models. In addition, there is always the option of buying used equipment.
Contents hide
1) Typical mistakes when cutting costs
2) TOP 10 ways to reduce costs
2.1) Saving on the tax system
2.2) Saving on rental space
2.3) Saving on equipment and furniture
2.4) Saving on platform creation
2.5) Saving on assortment
2.6) Saving on suppliers
2.7) Saving on employees
2.8) Saving on advertising
2.9) Saving on buyers
2.10) Savings by reducing the number of returns
3) Conclusion
Common mistakes when cutting costs
The first thing that is important for a seller to understand if he decides to reduce costs in an online store is that in no case should he reduce all expenses at once. It bulk email campaigns is important to maintain a balance in everything, because only thoughtful, correct actions can lead to a positive result. Otherwise, optimization will not only not help increase income, but will also cause even greater losses and worsen the company's image. So, here is what you definitely should not save on:
Product quality. Buy cheap and sell expensive - this is the basis for building a successful business. However, in the case of purchasing low-quality goods and then selling them as good things, this can lead to sad consequences. First of all, this concerns the damage to the seller's reputation: people are not stupid and can easily distinguish a high-quality product from a fake. In addition, the seller can lose solvent customers: wealthy buyers will not buy a dubious product, even if it is in a shiny wrapper.
Registration. Every aspiring entrepreneur should keep in mind that operating without proper registration (individual entrepreneur, LLC, etc.) is a very bad idea. Of course, some people manage to continue their activities for quite a long time, but the result is still logical, because the tax office copes with its duties perfectly. In addition, suppliers and customers themselves treat such stores with great distrust.
Employee and. There is no need to hire a large number of personnel, especially at first. It is enough to have 2-3 reliable workers who will have knowledge, skills and experience behind them. A competent manager will not fire a smart employee, because these are the people who make a significant contribution to profit generation.
Promotion. Of course, there is no point in spending a lot of money on marketing activities. In order for the money invested to give positive results, first of all, it is worth understanding your audience, studying it and analyzing it. This approach will allow you to understand how to influence the moods and desires of buyers. Also, you should not completely ignore promotion, because this is a sure path to stagnation and loss of old customers.
Optimization. Good work is great, but efficient and perfect activity is something completely different. Today, there are a huge number of services: CRM systems, sales scripts, warehouse accounting systems, call tracking, analytics systems, etc., which not only make work easier, but also optimize all processes, increasing its efficiency. Automation is a cheaper option compared to manual labor.
TOP 10 ways to reduce costs
The e-commerce market has many advantages, which concern both inexpensive entry and quick promotion, and good prospects in general. However, a crisis and other shocks can cause irreparable damage to any business. Poor sales create difficulties for stores of any level, so in such a situation there is a need to take decisive measures that will help solve the problems that have arisen. One of the main measures that should be taken is to reduce costs. Below we will consider the main ways to do this.
Saving on the tax system
As you know, there are different tax systems: OSN, STS, UTII and PSN. Small businesses most often prefer the simplified form, considering it more profitable. You can make a simple comparison: pay 6% on "Income" or 15% on "Income - Expenses".
The first type will be a good choice for companies with their own expenses up to 60% of the cost price. This usually includes companies operating in the service sector and stores that have recently entered the market. In this case, there is no need to provide tax authorities with a report on each expenditure of funds; it is enough to record all income in the relevant documents.
It is important to keep in mind that in the case of this form of taxation, the payment of the minimum tax is required, even in cases where expenses exceed income!
Another type of taxation is most often preferred by large online platforms or stores that provide products on credit. Bank fees and delivery can be added to expenses. In this case, each expense is taken into account separately. It is important to understand that each expense will require a fee.
Saving on rental space
At the beginning of your journey, you can even make sales from your own home. This approach involves hiring employees remotely: the same sales manager or courier does not need to be in the office, because you can keep in touch using specialized services, which will be not only fast and convenient, but also effective. In addition, with this method, you can save a lot: there is no need to pay rent and utilities, there is no need to buy equipment and furniture. Only over time, when the work begins to bring profit, you can rent a room or buy an office.
Increase your sales with Mokka
Saving on equipment and furniture
If an entrepreneur decides to rent a space, the best solution for him would be to save on a PC, printer, online cash register and other equipment. There is no need to buy expensive equipment, you can give preference to simple but reliable models. In addition, there is always the option of buying used equipment.