Inbound handling (infographics)

Pros and Cons of selling on Amazon (vs eBay)

One cannot deny the success of Amazon. Started off as a book seller, it has expanded its product range to almost everything. It has become one of the biggest companies in the internet world.

Pros 

 As a buyer, we like Amazon for its wide range of products, plus most of the sales are money back guaranteed. As a seller:

1. Amazon is big and well known, meaning you will have a huge and loyal customer base. This gives you a chance for more sales, aka more profits. 

2. Compared to eBay, Amazon's listing is much easier and faster. You can also upload your inventory with Excel spreadsheets. Bonus.

3. You do not have to re-list items that you have already listed before. 

4. For eBay, you have to take high resolution pictures from a few angles, jazz them up and upload them onto every item. Amazon? You only need to write a brief description of your product.

Cons

Everything comes with both advantages and disadvantages:

1. Expensive! Amazon's fees are very high. They charge a higher commission fee (but no listing fee). 

2. The feedback system is only for buyers to comment. As a seller you are not allowed to say a word back...

3. You need your delivery confirmation number until you are paid.

4. Although the catalogue of Amazon is extensive, there is some niche products which do not exist hence you have to waste time creating your own page. 

5. It generally takes longer for an item to sell on Amazon. There are many buyers on eBay who are constantly searching for the eBay databases for stuff they want.

6. No bidding system on Amazon.

I would say both Amazon and eBay are offering exceptional selling services and each has their own pros and cons. You should conduct extensive research before you commence selling. In my opinion, Amazon is more suitable for bigger and higher value products due to their fee policies. At the end of the day, why not spread your risk and expand your target market by selling multichannel? 3PL will be more than happy to advice on this matter. 

Free shipping, YAY or NAY?

According to a recent survey, 9 out of 10 consumers consider free shipping as vital. Many of them have abandoned a shopping cart when the shipping and handling fee is higher than expected. Of course customers love free shipping, and you should always try to satisfy customers. But the question is: can you offer free shipping?


Pros of free shipping
The answer is obvious - to attract customers, but as a retailer it can mean much more than that. First of all the number of orders should increase, which boosts sales and profits. Moreover, many online stores have set up a minimum purchase value for free shipping, which can encourage larger orders per customers, which again can boost profits.

Another pro of free shipping is that it can help building up brand loyalty. As mentioned before many customers only buy from online stores that offer free shipping. Hence when it is offered, retailers should expect to acquire new customers and also retain customers. Customer retention can result in repeat purchases which is far more valuable than short-term gain. To conclude, free shipping make your store more competitive.

Cons of free shipping
Obvious answer - it costs! Shipping expenses can be more than you think since it includes postage, packaging, time, labour etc., The cost of shipping parcels have been rising these years (e.g.: fuel surcharge), and it also takes time and effort to consider, design, programme, and advertise the free shipping policy on your website. To conclude it can be quite dear for retailers to absorb all these costs.

SO, free shipping or not?
I would say try your best to offer this if you can. Of course you need to consider your margins - calculate how much are you going to lose from offering free shipping, and how much more profit you need to cover this. This can help setting a minimum order value to offer free shipping. Then consider your product type - some products are just too heavy or too big, so it is much more expensive to ship. One can consider establishing restrictions when offering free shipping. Lastly consider your customers' location. You can only offer free shipping to certain areas.

This is just a brief evaluation and the actual consideration process can be much more complicated. A lot of retailers offer a wide range of varying products so it is difficult to standardize. Moreover, customers can still abandon their shopping carts even if you have not offered free shipping, which makes the impact difficult to measure. One thing to bear in mind is that there are a lot of competition out there which are already offering free shipping. Hence when you offer the same thing, it may just bring you up to their level, and your sales level may remain the same.

Google launching retail stores!

Online world giant Google maybe invading the real world soon. 

According to E-commerce news, there is very reliable sources stating that Google's retail plans has already had a foundation. Of course no one knows about the details yet but Google is apparently planning to showcase their products such as Glasses, Nexus tablets and Chromebooks, in their brick and mortar store. 

Apparently the decision was made when Google was considering how to present the Google Glass to customers. The device is implanted with a lot of technology so it does not come cheap. I guess Google realise people are not going to buy something very expensive until they get to explore, feel, and touch it. 

Of course Google will be opening their retail stores across the U.S first, probably in time for the holidays. Quoted from E-comemrce news, it would be a 'big step up from the Chrome Zone or pop-up store concepts Google has experimented with up to now'. Indeed, Google has never really been portrayed as a hardware company. This would be a big leap for the business if their retail stores are successful, in terms of gaining market share and branding.


I guess people would naturally consider this a tactic against the Apple Store (at least I do). Google really have to work on their strategies since not only Apple is one of the best performing store in the retail industry on sales per square foot basis, they have a wider product range to showcase too. All their stores give a 'wow' factor and it is difficult for any competition to match their high standard. 

No matter what strategies Google implies onto their retail stores, the business is more likely to gain than lose. Provided that the Google office is one of the most creative in the world, we are all eager to see how stunning their new stores will be. 

Google Office

4 points to consider when outsourcing order fulfilment

When a potential new client approaches 3P Logistics, their main concerns usually centre upon how we can help them and what costs are associated. Any decision to outsource is a pivotal consideration and we would always recommend that any business takes the necessary time to evaluate the expected impact to the long term business plan – this is more often referred to as “the valued proposition”. Outsourcing to a logistics partner is adding an extension to your business and should be seen a long term partnership as opposed to a one off purchase.





1. Product Types

Fulfilment companies can accommodate most product types, but there are normally a few exceptions to the rule. Pharmaceuticals, hazardous goods, or high value items are some typical exceptions that would normally assume specialist storage and handling requirements. Certain products may require a degree of manual intervention upon receipt. For example, 3P Logistics provides personalisation of football shirts, and goalkeeping gloves whilst we also offer an engraving service for key rings etc. 

2. Timing

This involves understanding and identifying the “sweet spot'

Only when you have established a proven and consistent demand for your products should outsourcing be considered. A lack of space, time and expertise are early indications that outsourcing may soon be a requirement. The “sweet spot” may be accelerated in the event that a lese expiry is due or service is suffering. A typical threshold on when outsourcing becomes viable is around 100 orders per week as a minimum. Larger scale fulfilment companies may determine a far higher entry level normally associated with high volume blue chip etailers

3. Opportunity Cost
Such a professional term, yet it is essential to evaluate your opportunity cost. When outsourcing you are paying for units of time that in turn will free you up to focus on growing your business. The greater levels of efficiency, and flexibility is likely to deliver both service enhancements and lower operating costs. To outsource successfully you must be able relinquish a degree of direct control and learn to trust. Most etail businesses can be overseen remotely by embracing web based technology and accessing real time information relating to your orders, stock levels etc.  3P logistics have a dedicated customer service team and contact centre whilst aiding business growth through multichannel selling. Our official partnership with Linnworks multi-channel software provides our clients with a live, synchronised system allowing users to monitor their stocks anywhere, anytime and without the risk of overselling.


4. ROI
For every business action you should measure the ROI and evaluate your cost per order before outsourcing. How much do you currently pay for your labour, warehouse, equipment, shipping, etc. and remember to factor in the cost of your own time. You will often find a better deal with an outsourced order fulfilment company as they offer pay as you use warehousing services and can often share the benefit of bulk buying from the major parcel / postal carriers. 

Google shopping - advertise your listing for free (for now)

Put yourself into a customer's shoes and think: what would you do if you want to buy something online? I believe a lot of them will use Google to conduct an initial search for products. The first search result appearing on the top of the organic listing is what we are looking into today - Google Shopping. You can see how important it is to have your listing there since this is the first thing people see when they try to find something (and already have something in mind), meaning the conversion rate would be relatively high.


As shown in the picture below, when I search for a TV from a particular brand, Google shopping is right at the top and when I click on the link it will bring me to the full list. It is like a comparison website and a virtual shopping mall. 






















According to daytoday eBay, in order to have your eBay listing in Google shopping, the item must be specified:
1. Brand
2. EAN
3. Size (clothing)
4. Color (clothing)

As you may have already known, every additional service that Google provides aim to get money from us. Google shopping is currently implementing changes and will be completed by the end of June. According to Summit, Google have announced that paid Google Product Listing Ads will replace free Google Product Search, with a transition period starting on 13 February 2013.

Will our eBay listing still appear 'fairly' on organic (free) search after all these? 

Sales is in the air!

I cannot help but admire the power of advertising. With all those inception of the idea of 'love is in the air', Valentine's Day becomes 'sales is in the air'. Great news - another delightful day for retailers. According to Econsultancy, the online sales in the UK have been rising year over year in the run up to Valentine's Day. 




As expected the top valentine's gifts have to be flowers, jewellery, lingerie, and chocolate. In UK, the sales of lingerie has seen a 27% year on year increase in the run up to Valentine's Day 2012 (kinky!). Moreover, the average Valentine's spend per person in the UK reaches a whopping £121 (source: Econsultancy). As a retailer, how can you miss out such valuable opportunity? 

So, have you prepared yourself well? There are a few points to pay attention to during peak sales period:

1. Space - this includes storage space, and space for picking, packing, and doing all those little things. 
2. Flexibility - open space is the key, since it allows customisation. Everything can be laid out properly and openly so no time would be wasted on searching for items. 
3. Staff - A strong team is essential, especially during peak times since one man's fault can be magnified when passing down the chains. When the first man delays the process, the next man will have to wait (having nothing to do), which means wasting more money. You may need extra staffs as well - training temps takes time but it can ensure they do their job effectively. 

Many retailers have outsourced warehouse and the fulfilment process at peak times. Firstly this provides them with the space they need temporarily. Secondly well trained staffs are available to ensure a smooth and efficient fulfilment process at all time. This way they can save time, money and effort, and simply concentrate at the actual business aspect. Of course, choosing a quality fulfilment company is essential so make sure you do your research!

Fashion Stylist Live Chat – personalised shopping experience

If you shop online regularly, you may have noticed the recent implementation of live chat functions on various website, such as the leading fashion retailer ASOS. Live chat is still a relatively new concept, but this is becoming more and more popular. According to Sky, this feature has ‘improved its conversion rates as well as the customer experience’.  Statistics reports that 65% of online shoppers in the US have used a live chat function before.

Information from BoldChat

Instead of the traditional way of ‘I am here to help’, ASOS adopts the fashion advice approach. I tried the service out and this lady suggested me to buy finger tip rings for my friends’ birthday. I then asked her for the link to the product. After the chat was ended, I was asked to fill in a feedback form.

I find this service quite interesting since I can receive the level of attention (personalisation) and the ‘shopping ambiance  which can only be obtained in-store before.  This is also particularly useful for some lazy guys who neither want to travel nor using their brain when selecting a gift for their girlfriend, or vice versa.

Live Chat is not a popular feature in the e-commerce industry yet. However, if a retailer has already employed customer service staffs I do not see the reason of not implementing such handy feature; or even upgrade to a webcam chat if you have the resources since this can conduct a more natural conversation.

User experience optimisation (10 points checklist)

When the high street becomes 'digital'

We all know the power of online retailing. People are all talking about how the internet world is going to take over the high street soon. I personally think this is way too extreme. Indeed, the convenience that you could get from shopping online is irreplaceable, but shopping in the virtual world can let you see, feel and touch the actual product. You can also get that 'shopping ambiance' which does not exist in the online world.

It is time for the high street to fight back, and providing an interactive shopping experience is the way to go. Example: we all like the Apple store because it just looks and feels so cool. All the products information are displayed on their iPads, just like what you will see when you shop online. Apple has combined both the online and offline shopping experience and has achieved great results.

Another example is the Marks and Spencer store in Cheshire Oaks. Lots of TVs, iPads (again), QR codes available for scanning, and of course free WiFi. The store even uses data feeds to provide personalized product recommendation. Great for cross selling.



With technologies there are endless possibilities. Features such as interactive mirrors allow customers to actually see how they look in different clothing items and suggests matching items for the outfit. These USPs differentiate a store from the others by providing a better and more complete shopping experience. This can be a reason for consumers to visit the high street.

So,  do you prefer buying online or offline?

UK Online Seller Meetup

A meetup event for UK online retailers was hosted by Christoph and Lisa from Iwoca last night . It was great success - with lots of tips and information (and food and drinks!) provided by various industry experts. Ian Walker from 3P Logistics was also invited to be one of the guest speakers. His presentation focused on what, when and why to outsource, and this leads to much interesting and engaging discussion. 

To return the favour, we are aiming to host another meetup event next month or so. Again there would be guest speakers, Q&A and discussion sessions, and networking opportunities with like minded people. Please join our meetup group for further announcement! 
http://www.meetup.com/NORTH-WEST-ONLINE-RETAILERS-MEET-UP-GROUP/

Linnworks reviews (and partnership with Royal Mail)

Multi-channel selling becomes much easier with the provision of automated interfaces. When outsourcing, one should always choose a reputable service provider, with attention to the system they use as well.

As a partner of Linnworks, which is a reliable order management system for e-commerce, 3P logistics have always fully utilized its function to ensure secure and seamless data synchronization between our clients and ourselves. The feedback has been exceptional. 

Its excellency is once again confirmed by the reviews from many customers on Trustpilot website.

Linnworks scores a 8.9 out of 10

Reviews are mostly 5 stars.

It has much better reviews than its competitor Channeladvisor. 

Linnworks and Royal Mail have recently partnered with a direct integration to help retailers automate the shipping processing of their tracked and untracked mail parcels. A bonus for our clients. For more information please goes to: http://tamebay.com/2013/02/linnworks-announce-direct-royal-mail-integration.html

3P Logistics are proud to be a partner of Linnworks. Our I.T. systems are at the heart of our service offering, whilst our flexible storage capability and fast moving pick pack operations are complemented by a wide range of distribution services to suit most demands.