How etailers can reduce the costs of expansion

You’ve found a niche market and you’re ready to expand your ecommerce business. Is it really that easy? Having great products and a growing demand for them is not enough to fund what could be a costly expansion. Things to consider are:


If you ecommerce business is small you may be storing your products in outbuildings at home, in lock up facilities or renting warehouse space. If you are expanding within the domestic market or into Europe you will need to hold a much larger inventory and this may require investment

If you sell more goods over a wider geographical area, the logistics of distribution must be considered. You need to know how quickly you can deliver to all areas of your geographical market and how much you need to charge for it to be profitable to do so.

Order fulfilment
Order fulfilment is key for any business regardless of its size but the larger a business grows, the greater its order fulfilment function needs to be.

Customer Service
Recent research has shown that 75%+ of customers who would pay more for goods that are backed up by gold star customer service. Attracting the customers and getting them to make a purchase is only the tip of the iceberg.

You need to examine your IT solutions and check they are robust enough to cope with multiple orders, payments and fulfilments and will process these accurately and efficiently. Your IT system must also provide you with management information to enable you to correct problems in your marketing, fulfilment and distribution and to highlight customer service issues in a timely manner.

If you decide, after considering the above, the costs of expanding are too great; there is a solution for the businesses to achieve all of the above requirements with reduced costs. Use a warehousing and order fulfilment company like DK Fulfilment to take care of your business from warehousing to IT and free you up to source new products and new markets.

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