The year is 2020 and most people are not purchasing consistently online. With the COVID-19 pandemic even more and more people are shopping through eCommerce. It really is the truth that the new normal is shopping online and having the convenience of shipping to your door becomes mainstream. With where I work now I have seen so many eCommerce companies succeed and also fail with the unfortunate circumstances of bad choices. This is something that I really don’t like to see. So today I want to go over some things that I saw failing companies do and areas they ignored which actually ended up costing them enough money to begin a downward spiral. The thing is that where you shop for bags and boxes can have a massive impact on your bottom line. The revenue savings from purchasing your basic baseline products that you know you are going to use can be the difference between success and instant failure.
The first thing I always tell people when they are getting into eCommerce is to understand that every item they sell will be shipped. They all laugh and think I am talking really basic, but I then like to go into the fact that shipping supplies make and break companies. When competition is tight and maybe you are facing 300 people in the same industry then you need to be able to stay ahead of be competitive. So how do you do this? What if those 300 companies are all purchasing the same items from the places you are? Well, then you have to cut corners and find ways to stay ahead to either sell at a lower price or offer a better shipping rate or discount. This is a really big deal and you must know how to do this or you will end up losing in the long run.
The first thing you need to do is to find the best source for all your shipping supplies. Most people fail right here and at this point. They simply do not search hard enough for the best company. Or they don’t negotiate enough for the best deal and they end up losing lots of margins on each and every single item they sell. It certainly is hard to stay competitive when every item you sell loses you some money. What I see the most is that people always shop one of two places.
The first place they shop is a local store. It is really nice to put that you only shop locally and all your products are shipped with local goods. People like this and it can be a selling point. The fact is that it is usually only successful if your local store is an industry leader and able to give you the same discounts and rates as a large nationwide company. This is why most little companies that shop locally end up losing because their rates are twice as high and their options are usually lower.
The next option is Amazon. This is where most people shop and if you are doing this for an office and picking up regular supplies more power to you. But the costs are still higher than you can get elsewhere and people simply give up and concede that convenience is worth more to them. Find a major manufacturer online instead and negotiate until you crush amazon prices. That is my advice and what you should attempt to do.