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Taking business online

Discussion in 'General Business Forum' started by momon121, May 16, 2020.

  1. momon121

    momon121 UKBF Regular Free Member

    496 32
    Hi

    hope everyone is well and fighting fit. Like many I too have been affected due to COVID.

    However thanks to many on this forum due to their advice I will now be talking my business online.

    For those who are new on this forum my advice to newcomers are is that many individuals on this forum provide excellent advice and business hacks for survival and growth. Information is not readily available online or through any scholarly work.

    For years I have been postponing to go online. Always trying to look for excuses even though I knew there was a huge potential as the COVID has proven to everyone.

    Due to the high cost of shipping I always feared that customers would not want to pay the price. Thanks to the advice by many senior members on this forum I should proceed ahead as customers would be willing to pay the shipping if they wanted the service.

    Fortunately I have managed to secure a deal with one of the couriers services, the rate is great but I will work keen and try getting volume required to negotiate better terms.

    most of my competitors charge £3.99 so I will be competing against that and absorbing little before the volumes are reached.

    Thank you so much everyone
     
    Posted: May 16, 2020 By: momon121 Member since: Mar 30, 2010
    #1
  2. Simon-TP

    Simon-TP UKBF Contributor Free Member

    36 4
    Best of luck with taking your business online.
     
    Posted: May 18, 2020 By: Simon-TP Member since: May 5, 2020
    #2
  3. Mr D

    Mr D UKBF Legend Free Member

    21,996 2,586
    Could always build shipping into price and offer free shipping. Same overall cost to the customer and to you but comes across better to some customers.
     
    Posted: May 18, 2020 By: Mr D Member since: Feb 12, 2017
    #3
  4. alan1302

    alan1302 UKBF Ace Free Member

    1,398 258
    In what way?
     
    Posted: May 18, 2020 By: alan1302 Member since: Jun 2, 2018
    #4
  5. Mr D

    Mr D UKBF Legend Free Member

    21,996 2,586
    Rubbish.
     
    Posted: May 18, 2020 By: Mr D Member since: Feb 12, 2017
    #5
  6. Nick Walsh Studios

    Nick Walsh Studios UKBF Contributor Full Member

    88 7
    Make sure website has SSL
     
    Posted: May 19, 2020 By: Nick Walsh Studios Member since: Apr 12, 2020
    #6
  7. momon121

    momon121 UKBF Regular Free Member

    496 32
    Yes thank you it is
     
    Posted: May 19, 2020 By: momon121 Member since: Mar 30, 2010
    #7
  8. JEREMY HAWKE

    JEREMY HAWKE UKBF Legend Full Member

    4,923 1,638
    I like that Idea @Mr D . It is absolutely stupid adding delivery to the price !
     
    Posted: May 19, 2020 By: JEREMY HAWKE Member since: Mar 4, 2008
    #8
  9. Mr D

    Mr D UKBF Legend Free Member

    21,996 2,586
    And very nice when buyers order multiple items - extra profit.
    Around 1 in 10 of the orders I get is a multiple - a few are 3 or more items. 10 pounds worth of postage charged for a 3 pound postage parcel? Not going down well with customers.
    3 times price with a slight discount for multiple? 6 pounds extra profit is nice and buyers do not complain.
     
    Posted: May 19, 2020 By: Mr D Member since: Feb 12, 2017
    #9
  10. Alison Moore

    Alison Moore UKBF Regular Full Member

    372 52
    It depends on what you're selling and to whom as to whether it's a good ideal to charge delivery separately. For instance when selling expensive, or large items or selling to B2B or regular customers, people don't mind paying delivery, however if you're selling low price items or selling on eBay, it's better to absorb the delivery costs. Good luck with the online venture!
     
    Posted: May 19, 2020 By: Alison Moore Member since: Aug 4, 2016
    #10
  11. momon121

    momon121 UKBF Regular Free Member

    496 32
    I have factored building shipping price into the cost but sadly it wouldn’t work and the slight increase will be noticeable by many.

    As we work on such low margins and on high volumes and offer greater value than traditional pound stores we decided to have shipping cost transparent would
    make it easier for our customers due to separate charges.

    Suppose we do ship online about 100 parcels a week and I observed all the cost which is £4.99 that’s near enough £500 I will have spend from my own personal money to keep the service afloat and it wouldn’t make sense to continue with online service
     
    Posted: May 19, 2020 By: momon121 Member since: Mar 30, 2010
    #11
  12. The Byre

    The Byre UKBF Ace Free Member

    9,784 3,952
    I have yet to understand why anybody selling any physical object is not online. They rent shops and pay silly fees for this that and the other, inc. exorbitant council rates and have to have sales staff and therefore have to charge twice as much as on online sales operation. Madness if you ask me!

    I even buy building materials online and this week I shall be buying 50 fence posts online. In the past, I have bought anything and everything from steel sheeting in bulk, roofing materials, shoes, job-lots of odd stuff like cartons and bubble wrap, paint, glues, cameras, cookers, refrigerators, two cars, a large wood-burning cooking stove, everything except groceries - and of course loads of people buy groceries online as well.

    Who are these people who are not online yet?
     
    Posted: May 19, 2020 By: The Byre Member since: Aug 13, 2013
    #12
  13. Mr D

    Mr D UKBF Legend Free Member

    21,996 2,586
    If building shipping price into item cost then shouldn't be any increase. A £9 item with £3 postage becomes a £12 item. No need for increased price.

    Yes agreed don't fund shipping from your personal money. Get buyers to pay for it instead like you do the insurance, the utilities, the accountant etc.
     
    Posted: May 19, 2020 By: Mr D Member since: Feb 12, 2017
    #13
  14. Scottishgifts4u

    Scottishgifts4u UKBF Contributor Free Member

    66 22
    When I started my website we charged £3.50 per order.

    This worked out okay then decided as an experiment to offer free postage whilst upping our prices to compensate.

    The volume of orders went up a vast amount.

    Why don’t you try 6 months charging postage and switch to free postage and see what happens. You can always switch back if it’s not successful.

    That’s the beauty of running your own business. You can experiment and if it doesn’t work switch to something else.
     
    Posted: May 19, 2020 By: Scottishgifts4u Member since: Jul 6, 2017
    #14
  15. Solly

    Solly UKBF Contributor Free Member

    54 6
    I get around that by using price breaks. Each additional item gets a higher discount.
     
    Posted: May 19, 2020 By: Solly Member since: Jan 13, 2020
    #15
  16. momon121

    momon121 UKBF Regular Free Member

    496 32
    Hello Mr Byre I’m one those sad individuals who haven’t yet transitioned online yet.

    Besides staffing wouldn’t the cost be similar online all? If the online ventures do well you also need bigger unit/warehouse, pay utility bills, tax etc

    Do school me My Byre because I’m on knew to the business world and I’m still learning.
     
    Posted: May 19, 2020 By: momon121 Member since: Mar 30, 2010
    #16
  17. momon121

    momon121 UKBF Regular Free Member

    496 32
    How does that work ?
     
    Posted: May 19, 2020 By: momon121 Member since: Mar 30, 2010
    #17
  18. momon121

    momon121 UKBF Regular Free Member

    496 32
    Your product items possibly allow you absorb and grants you to build shipping prices into your items. It’s slightly tricky for me. Suppose on average an item cost me 70p and I re-sell it for £1 possible I can add 5p or 10p across the board to help me possibly offer free deliveries. What you think ?
     
    Posted: May 19, 2020 By: momon121 Member since: Mar 30, 2010
    #18
  19. momon121

    momon121 UKBF Regular Free Member

    496 32
    Thank you so much - I’ve tried to absorb the cost but it’s extremely difficult unless I increase my selling price
     
    Posted: May 19, 2020 By: momon121 Member since: Mar 30, 2010
    #19
  20. Mister B

    Mister B UKBF Ace Free Member

    2,437 559
    Being honest, if I were buying for £0.70 and selling for £1.00, I wouldn't bother. By the time you have factored in lost goods, returns, your time etc etc you will make nothing at all. All of this of course is assuming that you're not VAT registered, which will make the situation even worse.

    Mister B
     
    Posted: May 19, 2020 By: Mister B Member since: Aug 31, 2007
    #20