Many online store owners wonder, “How on earth am I supposed to compete with Amazon?”
With their product selection and fast fulfillment times, it’s no wonder customers
are flocking to these eCommerce platforms.
Since Amazon’s platform is so large, many shops opt to have products fulfilled by Amazon. However, the fees are undeniably high and can take away the profit you make on each item.
Lowering your seller fees is no easy feat, though. Amazon runs a complicated system where users are a flat fee per item as well as any associated category fees while eBay runs a percentage based system, taking anywhere from 8% to 15% of the item value.
Using Amazon, you can drop the £0.75 item selling fee by purchasing their £25.00 upgrade seller plan, which is great for larger stores on the platform. You may also opt to contact Amazon to purchase products directly from you, so they maintain inventory and you don’t lose any profit whatsoever, though this is a rather difficult process that will likely end in a rejection.
With eBay, opt to remove any of the additional “highlighting” features offered. A well written listing with professionally taken pictures will do wonders, compared to a bolded title, etc. You can save up to £3.00, so it’s definitely worth a look.
While you can lower your seller fees with these popular eCommerce options, opening your own eCommerce store can be a great option to keeping more of your profit while also having greater control on customization. You might opt to have someone host your store for you, host it on our platform or perhaps run it yourself. Some options include Shopify, a cloud hosted shop platform and Magento, a free Adobe-owned eCommerce platform.
Costs for the software can range anywhere from the low, low cost of free up to hundreds of dollars, so be sure to weigh your options carefully. Shopify allows for easy dropshipping, while Magento’s most attractive feature is that it is free.
However, if you opt to use a self-hosted platform such as Magento or WooCommerce, it needs to be run on a server. Don’t make the mistake of choosing a cheap shared hosting plan though, as it will likely end up that you’re upsold to a virtual server or are suspended due to overuse of shared resources. As the old adage goes, “If it sounds too good to be true, it probably is.”
Seeing your store grow and turn a profit is every shopkeeper’s aspiration. However, as you emerge as a retailer, you will eventually need to pay your staff and produce financial statements for tax purposes, especially in Europe, where value added taxes (VAT) are leveraged differently across member nations.
Whether you choose Xero or Sage, managing your accounts payable and receivable can be a nightmare, especially if you’re manually inputting client transactions. We can help you increase your business’s efficiency through the automatic posting of transactions, automated staff invoicing and more. Not only will this save you time, it can increase your business’s revenue as you can spend more time on what you love.
A moderately sized business will usually have at least a few employees working to manage inventory, find suppliers, etc. Your team is the core of your business — it simply cannot run without them. Make their jobs easier with software — we can create something that manages stock, assigns work to staff and more. They’ll spend less time performing menial tasks and more time running your business, allowing it to flourish.