When
deciding about the packaging that you want to use for your e-commerce
brand, bear in mind that many of your customers will appreciate recyclable and
zero-plastic packaging. However, you must keep an eye on the cost of the
materials needed and the postage fees. Branded boxes and the likes can be
significantly more expensive than standard ones. You can opt for a plain one
and use stickers to personalise your packaging at a lower cost.
After
figuring all of the costs involved, including that of manufacturing the item,
your time etc., your next step is to calculate your profit margin for each item
that you wish to sell. Ideally, deducting tax, this would be approximately 60-70%.
However, if you are a reseller that is purchasing from a wholesaler, your profit
margin will be 50% or lower. If that is the case, you have to keep an eye
out for ways to increase it as the years go by.
When you
have just launched the e-commerce business, you must want to keep
your stock levels and expenses in the business as low as possible. Keep the
costs lean when you start and as you expand, you will learn about what your
customers really want, so you can invest your money more wisely.
Photo
credit: OpenClipart-Vectors from Pixabay
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