Ways to release the pressure valve


Efficiency trumps cost
If you can negotiate great prices from your suppliers, of course you can minimise your cost of good sold. Many other layers of cost come into play though, especially in the highly price-sensitive categories. These include charges from marketplaces like Amazon and eBay, payment gateways staffing and system costs. It becomes a battle to drive up efficiencies and scale profitably.
Leverage automation
Automation is a great first place to start. The more you can replace manual processes with automation, and the more of your end-to-end business process you can automate, the better your margins. For example, leveraging automation can greatly speed up your listings processes, manage your stock levels for you and integrate data and stock information from a variety of sources.
Look at kits and bundles
At a product level, kits and bundles help you drive up your margins. If your multi-channel system can suggest a matching tripod and case for the camera that your customer is looking to buy, that’s good, right? Good analytics can also help you create new bundles. This increases average order value and customer lifetime value, and is way cheaper than acquiring new customers.
Research repricers
Imagine having thousands of items repriced dynamically to take advantage of your costs and business rules and maximise your chances of getting the deal. This saves you having to try and manually check prices across all your items, which is a margin killer. Pricing tools can also make sure your pricing is consistent across the different marketplaces you compete in.
Analyse, don’t guess
There’s little point guessing what profit you're making on each item unless you can take all your costs into account. With a good system that can give you instant analytics and reporting, you have a clear picture of what listed items are making what margins. This helps you focus your efforts on the high margin items, do something about the duds, and better manage your supply chain.
Overcoming margin pressure
Don’t worry, Volo can help you protect and increase your margins by providing efficiency improvement and performance visibility in your business. Volo customer Cheapest Electrical has improved productivity and sales become a top 3 seller on eBay. To discuss your challenges and how you can better manage your margins, why not book a call with one of our consultants. Good luck!