Veho’s Post

We got it all wrong. One of the biggest mistakes companies make is failing to properly evaluate return on investments (ROI). So many companies are leaving cash on the table, really for no good reason. It happens in almost every business area. And to be fair, we have made that mistake too. Many times. Take this example from Veho as case in point. We used to calculate the cost of defects (think packages that don’t make it to their destination on time) solely based on credits we give brands - what we call restitution costs. But when we looked closer, we realized we were missing the much bigger picture. When examining and aggregating the broader impact of defects, we uncovered we were also paying extra for customer service time, double handling of packages at our warehouses, inefficient routes and accounting overhead – to name just a few cost buckets. This comprehensive breakdown revealed a much higher total cost than we had accounted for – prompting us to reprioritize all projects to drive down defects as close as possible to zero. We decided that defects are not “the cost of doing business.” They are just too expensive, and more importantly - they are not aligned with our superior product offering. So we weren't going to put up with them, at any level. The same principle applies to shipping costs. Too many brands focus narrowly on one metric: direct shipping fees paid to carriers. They may save a few cents on a package here and there, but in doing so, they overlook the full impact of shipping and the delivery experience on their P&L. A bad delivery experience means more time and money spent handling customer complaints, higher refunds and credits, higher overhead costs, damaged brand reputation, and customer churn. In other words - it costs a lot more than a few cents. Shipping - typically the second largest cost item in e-commerce P&L - should be viewed first and foremost as an ROI center, not just an expense. It is all about maximizing Return on Shipping (ROS). A holistic ROS view can dramatically alter the strategy around which shipping partners to choose and where to focus tech investments (hint: you should work with shipping partners who prioritize your customers' experience). Brands who have embraced this broader perspective have seen transformative results. For example, in partnering with Veho, Tuckernuck has seen significant drops in their call center volume. Holistically, they are saving an average of 35% on shipping with Veho as compared to other shipping companies. It’s time to think beyond the obvious and unlock value across functions. What steps are you taking to optimize ROI holistically across your organization?

𝑹𝒆𝒂𝒅𝒚 𝒕𝒐 𝒔𝒖𝒑𝒆𝒓𝒄𝒉𝒂𝒓𝒈𝒆 𝒚𝒐𝒖𝒓 𝒃𝒖𝒔𝒊𝒏𝒆𝒔𝒔 𝒈𝒓𝒐𝒘𝒕𝒉? Discover the power of Profit First for sustainable success. Prioritize profit allocation, navigate lean months, and foster innovation with our latest guide. 𝑹𝒆𝒂𝒅 𝒊𝒕 𝒉𝒆𝒓𝒆: https://hubs.ly/Q02vCqCb0 #ecommerce #ProfitFirst #BusinessGrowth #CashManagement #ParkinsonsLaw

Drop Shipping: Low Investment, High Hustle Drop shipping lets you sell products online without holding inventory. You list items, a supplier ships them directly to your customer, and you pocket the profit. Sounds easy, right? There's a catch. Pros: Low Startup Costs: Forget about buying inventory upfront or renting a storage space. With Drop shipping, you don't need to hold any products yourself, significantly reducing your initial investment. Easy to Get Started: Because you don't need to worry about inventory management or logistics, launching a Drop shipping business is much simpler compared to traditional retail models. Scalability: As your business grows, you can easily add new products or suppliers to meet increasing demand. There's no need to invest in more inventory or warehouse space. Cons: Profit Squeezes: Competition drives down prices, and you often buy from suppliers in smaller quantities, reducing your profit margin. Limited Control: You don't physically handle products, so you can't guarantee quality or control shipping times. Supplier issues can directly impact your customer experience. Marketing muscle needed: Standing out requires strong marketing and branding. Best Practices: Find a niche: Focus on a specific product category with high demand and lower competition. Vet suppliers carefully: Choose reliable partners with good reputations and quality control. Build trust with branding: Create a strong brand identity to differentiate yourself and build customer loyalty. Offer excellent customer service: You're the face of the brand, so address issues promptly and professionally. Customer Service Champion: Since you won't physically handle the products, exceptional customer service becomes even more important. Address inquiries and issues promptly and professionally. You are the face of the brand for your customers. Drop shipping can be a viable option, but be prepared to hustle. Invest time in research, marketing, and building trust to carve a niche and succeed in this competitive landscape.

Scaling your e-commerce business isn’t just about growth, it’s about sustainable growth. Many businesses get stuck in the cycle of chasing growth without thinking about what comes next. They ramp up marketing, push sales, but soon hit a wall when their operations can’t keep up. This is where e-commerce management tools come into play. Automation, data-driven decision-making, and streamlined processes aren’t just buzzwords, they’re the foundation of sustainable growth. When your operations run like clockwork, scaling becomes a natural next step, not a struggle. Don’t just chase growth. Build the foundation to support it long-term. Let automation handle the repetitive tasks while you focus on strategy. ♾️

Blog writing on Navigating the World of Drop shipping: Pros, Cons, and Best Practices Drop-shipping has become a well-liked business model in the dynamic world of e-commerce, providing entrepreneurs with an alluring entry point into online retail without requiring significant upfront inventory investments. However, drop-shipping comes with its own set of advantages, challenges, and practices. Let's navigate through the landscape of the drop-shipping and look into the pros and cons. Commencing with, drop-shipping has many advantages, such as Time Flexibility and location independence, which means you do not need to go to any office for like 9 to 5 jobs. But, the pros did not end here scalability is also a key point of the drop-shipping. As the sales increase, you can work with more suppliers and expand your business, without worrying about storage fulfillment. in this world, every beneficial thing comes up with a price. Similarly, the e-commerce drop-shipping business has its cons. Firstly, the profit is very thin, as they have fierce competition, it is hard to hold on to a small amount of income. Moreover, inventory management challenges, and brand control and also the two major cons of the drop-shipping. Moving towards the practices of drop-shipping e-commerce. choosing a reliable supplier is a crucial aspect, because the better the supplier is the better the products will be and on time as well which is the key to drop-shipping. In conclusion, Navigating the world of drop-shipping requires planning, execution, and adaptation. By understanding the pros, cons, and best practices, you can position your drop-shipping venture for success in the competitive e-commerce landscape.

How to make $50K, $100K, and $500K in eCommerce Everyone talks about scaling to six figures. It’s 𝐰𝐚𝐲 𝐬𝐢𝐦𝐩𝐥𝐞𝐫 than you think. The key to these milestones is 𝐬𝐲𝐬𝐭𝐞𝐦𝐢𝐳𝐚𝐭𝐢𝐨𝐧 & 𝐬𝐦𝐚𝐫𝐭 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭𝐬. Scaling to six or seven figures in eCommerce is 𝐜𝐨𝐦𝐩𝐥𝐞𝐭𝐞𝐥𝐲 𝐩𝐨𝐬𝐬𝐢𝐛𝐥𝐞 if you follow the right roadmap. 📌 Are you aiming for $50K, $100K, or $500K in your eCommerce business? Let’s talk about how to make it happen faster. Follow Meredith Judge for more insight!

The story behind Websvan should be a lesson to every start up to consider market discovery before launching product/service. Webvan was an online grocery delivery service that operated from 1996 to 2001. Here is an analysis of its demise: Reasons for failure: 1. Overexpansion: Webvan expanded too quickly, entering new markets without solidifying its existing ones. 2. High operating costs: The company's business model was costly, with expenses including:   - Building and maintaining a network of warehouses and delivery infrastructure.   - Hiring and training a large workforce.   - Offering same-day delivery and a wide selection of products. 3. Logistical challenges: Webvan struggled with:   - Managing inventory and preventing stockouts.   - Ensuring accurate and timely deliveries.   - Handling customer service issues. 4. Competition: Webvan faced competition from established grocery stores and other online delivery services. 5. Financial struggles: The company burned through significant amounts of cash, with:   - High marketing and advertising expenses.   - Substantial losses due to operational inefficiencies. Key lessons learned: 1. Focus on core markets: Webvan should have solidified its existing markets before expanding. 2. Control costs: The company should have optimized its operations to reduce expenses. 3. Develop a robust logistics system: Webvan needed to improve its inventory management, delivery accuracy, and customer service. 4. Monitor competition: The company should have kept a closer eye on competitors and adjusted its strategy accordingly. 5. Manage finances carefully: Webvan should have been more frugal with its cash and focused on achieving profitability. Conclusion: Webvan's demise serves as a cautionary tale for startups and businesses expanding rapidly. It highlights the importance of: 1. Focusing on core markets and solidifying operations. 2. Controlling costs and optimizing logistics. 3. Monitoring competition and adapting strategies. 4. Managing finances carefully to achieve profitability. By learning from Webvan's mistakes, businesses can avoid similar pitfalls and build a stronger foundation for success.

Discover the key factors guiding the 'Build vs. Buy' decision in #retailtransformation. Dive into our latest article to learn how to seamlessly integrate the best of both worlds with a Composable Commerce approach. https://lnkd.in/guRVvFVY Hungry for more? Check out our previous article in this series here: https://lnkd.in/g3gW_jzc #buildvsbuy #composablecommerce #MACH #HeadlessCommerce #CloudNative #APIFirst #RetailTransformation #headless

☀️ August 1st is here, and so is a game-changer for ecommerce brands! 🌟 Clearco is making your funding journey smoother than ever. We’re introducing a new feature that presents a single, clear number for your Funding Capacity. No more confusion—just clarity and confidence in your financial planning. 🚀 Whether you're looking to fund inventory, marketing, or logistics, you'll know exactly how much you can leverage to scale your business. 📈 Want to learn more? Check out our latest blog to see how Clearco's latest product update brings clarity to your Funding Capacity. Dive in now! 👇 #ecommerce #finance #inventory #funding #dtc #businessfinancing