Many ecommerce businesses have a sales-oriented approach, seeing operations merely as a cost center. While they might focus on various aspects like advertising and customer service to boost revenue, they may overlook or defer operations improvement. But without breaking down these barriers and perfecting your logistics strategy, all your efforts may go to waste.
At Gonuggets, we understand the potential of operations to drive revenue as an ecommerce accelerator. Our end-to-end resources and proprietary data have assisted multiple brands to achieve operational excellence and higher revenue.
Here are three common barriers preventing brands from using logistics as a strategic tool:
1. Controlling Your Shipping Costs
An effective operational strategy involves reducing shipping costs, selecting optimal shipping options, and remaining up to date with contractual terms. By identifying available shipping options and gradually improving shipping times based on customer needs, brands can bring their operations closer to being a revenue generator.
Amazon's Prime program serves as an excellent example of operational excellence. Amazon realized that customers prioritize predictability over fast shipping. By providing a reliable delivery timeline, they have satisfied their customers and boosted their operations.
2. Getting Closer to End Customers
Thanks to major distributors like Amazon and local players with extensive warehouse networks, a large portion of the European population is within a fast-shipping radius. As ecommerce continues to grow, proximity to end customers should increase, leading to quicker and more predictable deliveries.
Starting out on marketplaces like Amazon eliminates the need to worry about proximity as Amazon has already solved the problem. With extensive experience as a 3P partner on Amazon, Gonuggets has developed its own distribution and fulfillment process to leverage and supplement Amazon's solutions and meet the demands of the European market.
3. Overcoming Marketplace Complexity
The retail industry is rapidly becoming fragmented and complex. Businesses often cope with this by seeking alternative strategies like dropshipping (Direct Fulfillment, SFP, FBM, etc.).
Finding alternative solutions can give brands a competitive edge and pave the way for operational revenue. By discovering a better, faster, and cheaper way to deliver their products to end customers, they can save time and money in the long run.
Turn Complexity into Opportunity with Gonuggets Delivering products safely and efficiently to customers while driving revenue is crucial to success on all global marketplaces. Brands must break down their logistics to understand where to find revenue opportunities.
If you're ready to turn your operations into a revenue generator, reach out to us.