3 Ways To Reduce Costs In Your E-Commerce Business

As with any business or startup venture, your chances of survivability will increase year-over-year if you make a profit. You can increase your profits by attracting more customers to your business, and by raising the prices on some of your products. You can also increase your profit margin by finding ways to reduce overall costs. With an E-commerce business, you can save money in the following ways. Here are some of the top ways.

#1: Reduce delivery costs to increase your profit margin

In your business, you will need to pay delivery costs on the supplies you buy for your business, and delivery costs for the items you ship to your customers. 

You can save money by researching freight companies and taking note of the fees they charge per delivery. You can also save money during the shipping process by opting for 'full truckload freight shipping.' This is where you ship your orders in bulk instead of relying on several smaller shipments. Especially when you have a lot of orders for one particular town or city, this can be cost-effective. 

Go online to compare truck freight rates and research cheaper delivery options. 

#2: Negotiate with your suppliers for better prices (especially if you purchase volume amounts)

After building up a professional relationship with your suppliers, they might be willing to offer you a discount on the products you buy from them. Many will also offer you a discount if you up your order amount and buy in bulk. 

Of course, if you do buy in bulk, you will need sufficient storage space, so factor this into the equation. If putting items in storage puts you at a loss, you might want to work out another way to save money with your supply company. You might want to let them know about cheaper suppliers you have found elsewhere, for example, as they might then be willing to lower their prices to keep you as a customer. You might also want to change suppliers if a deal can't be made as it obviously makes more sense to go elsewhere if you can get what you need at a cheaper price. 

#3: Call your credit card processor to see if they will reduce processing fees

If you have been doing business with your credit card processor for a long time, they might be willing to nix some of its fees. Some fees will be non-negotiable, including those that have been handed down by MasterCard and Visa. However, some fees are set by the processor, including annual fees and online reporting fees, and these could be negotiated or eliminated. 

So, pick up the phone and speak to them. Like your supplier, they want to keep their customers, so don't be afraid to ask. If they turn you down, threaten to leave them, as they might change their mind in an effort to retain your custom. Alternatively, move to a new credit card processor when your current contract is about to end if you can find a better deal elsewhere.

The more money you can save the better, so consider our suggestions. Then look online for other ways to reduce costs in your E-commerce business, as you will be able to increase your profits and grow your business if you do.