South African ecommerce businesses can bring down ecommerce delivery costs by streamlining logistics, using technology to run fulfilment more efficiently, cutting returns at the source, negotiating with suppliers and couriers and communicating clearly with customers.
Key points:
- Work out your true cost per order, including packaging, failed deliveries and returns, then use that number to guide every logistics decision.
- Compare courier and fulfilment quotes every few months and offer collection or locker delivery alongside door-to-door to lower ecommerce logistics costs.
- Add inventory and order management technology to cut packing errors and admin, and fund the upgrade with a GoTyme Business Advance if it needs upfront spend.
- Prevent returns at the source with accurate sizing guides, clear photos and honest product descriptions, since each return saves two delivery legs.
- Negotiate better rates with suppliers as your volumes grow, and set clear delivery timelines so customers know what to expect.
Start by working out what one delivered order really costs you. Once you know that number, cost reduction strategies fall into place, from setting a minimum basket value for free delivery to choosing the right courier mix. Technology is where many stores find the biggest savings, since order management tools give you the data to spot where fulfilment costs are creeping up. Returns management matters just as much, and clear customer communication does the same job by reducing the "where is my order" queries and the returns that come from mismatched expectations.
If upgrading your fulfilment or systems needs upfront spend, fast unsecured funding of up to R5 million through a GoTyme Business Advance could help, subject to assessment. See how funding works for online stores at gotyme.co.za/business/industries/ecommerce.