As brick-and-mortar stores are slowly dying out and online shopping is taking over, most merchants see switching to eCommerce as a logical move. It is projected that eCommerce will account for more than $6.5 trillion in sales by 2023 and this number will just keep rising.
But even though there is a high chance for profitability in the eCommerce world, there are also high costs. And if you don’t know how to keep those costs as low as possible, your store will never be able to reach its full potential. That is why you need to look for some effective ways to cut costs at every possible corner.
Use a clothing inventory tool
Keeping track of clothing inventory can be a big expense for apparel businesses, especially if you’re having a hard time keeping track of stock levels. Managing inventory is not only a tedious process, but it can also cost you a pretty penny if you don’t do it properly.
Doing all of this without any help is rather difficult and there is always room for human error, which is why you should use a clothing inventory tool.
This tool will allow you to use your available inventory storage space as efficiently as possible. That will minimize the cost associated with keeping unsold merchandise. It will take care of inventory management, order tracking, and reordering merchandise when needed.
A clothing inventory app will provide you with access to your full inventory complete with pictures and all the necessary information. When you have an inventory app, you can turn your phone into an on-the-go order-taking machine.
When businesses look to reduce costs, they do so because they want to increase their profitability. But another great way to do that is to improve your conversion rates, which is easier said than done. Conversion depends on a lot of different factors and it can be hard to pinpoint all of them.
If your conversion rates aren’t as high as you want them to be, apart from looking for different ways to reduce costs, you should also consider hiring a conversion rate optimization agency. While this may sound counterproductive, it’s a great investment that will save you money in the long run.
Working with a qualified conversion rate optimization agency will allow you to see what you’re doing right and wrong and where you could save time and money. These professionals can identify all conversion blockers in the customer journey and show you how to fix them.
An agency will help you stay on the right track, tell you if you’re chasing after the wrong goals, help you be more efficient, and scale your business much more quickly.
Be smart about how you spend your marketing funds
A marketing budget is a necessity for any business, but how you spend that budget can make or break your business. A well-placed online ad and an effective visual marketing strategy can bring in great ROI. While a poorly written and badly placed advertisement will just be a waste of money.
Since you’re an online business, the smartest choice would be to focus on digital marketing and allow your customers to find you online. You can do this through PPC ads, social media marketing, influencer marketing, and well-written blog posts. With every marketing strategy, don’t forget to track your ROI. And make sure it’s a good investment of your time and money.
Have amazing customer service
Customer service plays a significant role in the purchasing experience. Your business could lose a lot of customers if you don’t have helpful customer service reps. So it’s better to spend a little more on customer service than suffer the loss that would happen if you didn’t provide great service.
As much as 40% of consumers start buying from a competitor because they hear about their reputation for excellent customer service. Don’t allow your customers to turn to your competitors because you didn’t provide good enough customer service.
Instead, train your customer service reps well, make sure they’re always helpful, and provide multiple communication channels for your customers.
Reduce the volume of product returns
One of the biggest costs that apparel eCommerce businesses face is product returns. They can’t be completely avoided. But you can use a few tactics to minimize returns as much as possible.
These strategies include:
- Showing accurate sizing charts. Most customers return clothing merchandise because the size they bought didn’t fit them. Luckily, you can easily avoid that issue if you have a sizing chart for each item.
- Having an extended return time frame. When a customer has more time to return a product, they will think longer about whether they actually want to return the item because they have time to change their minds.
- Not accepting high-risk customers. Take a look at previous sales data to see if there is a pattern of customers who return items more than others. If you find such data, block those customers from shopping at your store.
Getting into the apparel eCommerce game can be daunting at first, especially if all you can think about is the high costs associated with running a business. But as long as you know how to keep your costs low and profit margins high, you are on the path to success.