With economists predicting that Australia will enter a recession and ABS data reporting that 44% of businesses expect operating expenses to increase, it is imperative that small and medium-sized enterprises (SMEs)start streamlining e-commerce processes and cut costs. SMEs are the backbone of the Australian economy, accounting for 99% of all businesses in the country. Their success is critical to ensuring economic growth and stability.
Forced by the pandemic, SMEs shifted to embrace e-commerce, and the numbers show that this transition was essential. Research shows that Australians spent more than $50 billion online in 2020, an increase of 57% from 2019. However, despite this growth, many businesses struggle with the logistics of e-commerce, including shipping, packaging, and returns. Now it is vital that businesses ensure their e-commerce processes and delivery models are efficient and effective to maximise their profits, minimise costs and grow their businesses further.
Automate your shipping process
Shipping is a vital component of e-commerce, but it can also be a time-consuming and costly process. Recent research by SOTI shows that 61% of Australian consumers rate the speed of online delivery as the most important factor when buying online. Automating your shipping process can increase efficiency, reduce costs, and provide customers with a better experience.
Choose the right delivery partner
Look for a provider that offers a range of delivery options to suit your customers’ needs and budget, such as express or economy delivery, or click-and-collect options.
Simplify your packaging
While it is essential to ensure your products arrive safely, complex and expensive packaging can drive up costs. Consider using standardised packaging materials to reduce costs and streamline your packaging process.
Use real-time tracking
Real-time tracking allows you and your customers to track the progress of their deliveries in real-time. This not only provides transparency but can also help you identify any potential issues and resolve them before they become a problem.
Implement a returns process
Returns are an inevitable part of e-commerce, but they can be time-consuming and costly. Recent research by Klarna found that more than eight in ten (84%) online shoppers do not repeat buy from a retailer after a bad returns experience, highlighting the power of returns as a customer acquisition and retention tool, and the repercussions of getting it wrong. Implementing a reliable and streamlined returns process can help you retain customers and reduce costs.
Optimise your warehouse operations
Efficient warehouse operations are essential for streamlined product delivery. Implementing technology such as automation and barcoding can improve accuracy and speed up the process. For small business owners without the people power, equipment and space should consider outsourcing these services.
Streamlining e-commerce processes and delivery models can have a significant impact on customer satisfaction and the bottom line. The benefits of efficient e-commerce processes extend beyond the businesses themselves, with the flow-on effect of increasing employment and economic growth for the country.
By Nicholas Woodward, Country Manager of PACK & SEND