E-commerce has had a strong impact on the Singaporean retail market. But it is clear that a lot more has to be done to enhance the competitiveness and appeal of e-commerce platforms. As a e-retailer, one way of doing this is by leveraging on your strengths. E-commerce is known for cutting off superfluous costs such as saving on retail space rental.
Here are several cost-cutting tips to reduce expenses while running your e-commerce business.
Be thriftier with your marketing funds
Spending your marketing budget into digital methods is the best way to increase your brand awareness and boost traffic, but knowing which avenue is the right one is key to help you most. Calculate your return on investment (ROI) for your campaigns which will help you determine the best ways to utilise your budget. This way, you can also allocate more funds to the high performers.
Cut inventory costs
Are you using your warehouse space efficiently? Do you have dead stocks or slow-moving stocks that are occupying valuable warehouse space? You need to cut your inventory costs by ensuring that you have a higher volume of profitable and moving goods as opposed to slow-moving or dead stocks. Remember, each SKU must justify its space and how long it’s occupying it.
In case you find there are some items which are not as popular and move slowly as compared to others, consider bundling them as promotional items or freebies. It’s a great way to draw new clients and offer a deal that’s value for money.
Having the right warehouse space is also crucial to manage your inventory efficiently. By cutting down on bottlenecks and space constraints, you can reduce costs associated to unproductivity. Our property at Depot Lane offers warehouses and industrial spaces for rent in Redhill
with accessibility via AYE so you can plan your delivery routes efficiently. Unit sizes range from 2,411 to 4,132 sqft with ground floor feature and loading bay right outside the unit so you can carry out your deliveries conveniently. Aside from warehousing, this property is able to support ancillary office
and B1 light industrial business activities as well. Season parking is available for cars/small lorries and heavy vehicles. Surrounding amenities include Redhill MRT station, Depot Height Shopping Center and Bukit Merah Central. Currently, there is a limited promotion where you can enjoy up to 6 months rent-free. Contact us to find out more. Terms & conditions apply.
Automate your business
When you are able to automate tasks and activities, you can cut down on wasted time and thus, cut costs too. This way, you free up you and your team’s time to focus on other important work. Common tasks such as automatically tracking all your sales data into a spreadsheet, creating sales receipts, and adding new customer's contact details into your email marketing tool, can be automated with software and apps.
Use more efficient packaging
Packaging is a core component of e-commerce and it is often overlooked on how you can trim the costs down for it. You should aim to use the smallest and lightest packaging to avoid incurring heavier shipping costs but still protect the goods inside. Use fitting packaging material and minimize the need for extra cushioning especially for non-fragile items. A padded envelope for example, maybe the best choice for small-sized goods. You can also consider eco-friendly packaging which is also lighter, and at the same time, boost yourself as a brand with green initiatives that can be appealing to modern shoppers today.
Smaller e-commerce businesses can benefit more from flexible workspaces that offer lower rental costs than traditional office spaces, as you would only need a place to work and store to fulfil customer orders. Our property at Four Star Building offers storage and work spaces for rent in Kallang
with unit sizes ranging from 65 to 730 sqft and facilities such as lights, air-con and powerpoint included. There are carpark facilities, 3 loading bays, cargo lift, passenger lift, and 24-hour access & CCTV to support your business needs conveniently. Nearby amenities include canteen for various food options and easy accessibility to Bendemeer MRT and Kallang MRT for daily commute.