Do you have to pay Royal Mail’s increased rates?

The short answer is no – there are other options!

(photo courtesy: neopost)

As Fulfilment Houses such as 3P Logistics operate on behalf of a large number of online retailers, this means that their collective buying power and expertise in negotiating with carriers can bring benefits, which can then be passed onto their clients.

The increases implemented this week by Royal Mail have led online retailers to take another look at their distribution costs and delivery timeframes offered to their customers.  Fulfilment companies can offer a real alternative; not only can distribution costs be lowered, but the overall proposition of an in-house v an outsourced solution can bring enormous benefits in terms of time saved and the refocusing onto vital areas such as sourcing and selling more effectively, through multiple channels.

John Scully, Business Development Manager at 3P Logistics, explains: 

'Clients often arrive at a crossroads, where, to expand their business further, they need to either take on additional resource and space, or outsource on a pay-as you-use basis'.

'The recent hike in Royal Mail’s prices especially affect the small to medium sized online retailer – there are alternatives out there that can not only bring savings but can take their businesses onto new levels.'

Price changes details HERE

From online store to high street...

Yes I know, everyday you heard news about high street brands going online, selling online. It is always going from offline to online, how about the other way round? Does it even work?

Guess what - MOO.com, an online business cards printer, went offline instead. Their shop is located in Shoreditch, London, in a mall filled with hip brands. Paul Lewis, the director of marketing, says 'We’ve taken our digital service and moved it into the real world. Though sadly we are seeing many brand name shops go under, this does mean that the meaning of the high street is changing for people. It gives opportunities to smaller businesses and startups.'

Moo offline store has replicated the layout of a webpage (you can even see the drop down menus!), which certainly adds the fun factor. (picture from TNW)





The store allows customers to choose and design their business card on site. They can also order online and collect in-store. I guess the most interesting part is the 'inspiration' corner, which showcases examples of sticker cards and prints that have chosen the service from Moo. All these allow more interaction between customers and products.Going offline can actually be beneficial to a company since customers can actually touch and feel the product, which can encourage engagement and reinforce brand loyalty.

Indeed, people's shopping habit has changed. Quoting Internet Retailing, We expect the future of retail to be about shops as well as online. But those shops will be ones that are highly-targeted, aimed at a demographic whose interest was first measured online, and offer plenty of added value services'. I cannot agree with this more. There is still plenty of opportunity in the high street, it is just that shoppers are evolving and the high street stores have to evolve with them in order to survive.  I guess it is time to redefine the purpose of having a physical store. Shops are not just for displaying and selling products anymore, it should be a part of the multi-channel marketing and selling experience. I am not sure if Moo offline store will work but this can certainly generate a hype and excite potential customers - at least it works on me! Good luck :) 

North West Online Retailers MEETUP!

On 13 March, a nice clear evening in Manchester, 3P Logistics hosted a meetup event for e-tailers from the North West. With tables ladened with food and beer, the event was kick started with a mingling session among online retailers - great opportunity to talk to like minded people who all have great passion for selling online. It was then followed by three presentations by Carlos (shaping cloud), Ian (3P Logistics) and Artem (Linnworks), who share insiders tips and information regarding cloud technology, outsourcing and multichannel selling. 

3P Logistics would like to take this opportunity to say thank you to the great crowd last night, along with the excellent guest speakers. Everyone's enthusiasm helped make our time together both productive and fun! 

We would be hosting another meetup soon so keep your eyes peeled! Why not bring your friends along, have a beer and a laugh, and learn more about e-commerce? Join us here:
http://www.meetup.com/NORTH-WEST-ONLINE-RETAILERS-MEET-UP-GROUP/

North West Online Retailers Meetup 13 March

If you`re keen to stay attuned to the latest developments for all things online then our meet up group is for you. City Centre Manchester on Wednesday 13^th March will be the location for our next meet up event which promises to be an eventful evening.  We have three industry speakers and a great chance to mingle with fellow online sellers in a relaxed and informal gathering - who knows we may even throw in a beer and bite to eat!

With Linnworks, Shaping Cloud and 3P Logistics already registered to speak on the night it promises to be an enlightening evening.

l for one will be looking out for any top tips on all things multi-channel, cloud technology and order fulfilment.

View our meet our group today and get yourself along to future events. http://www.meetup.com/NORTH-WEST-ONLINE-RETAILERS-MEET-UP-GROUP/

3P Logistics Partner with Linnworks

Linnworks is an order management software and stock control system that integrates the entire multi-channel sales process. The software handles everything from order fulfilment to shipping, stock control and inventory management, and integrates with eBay, Amazon, Play.com, Pixmania, Magento and all major website carts.

The growing trend of online retailers branching out into multi-channel selling continues at a considerable pace. In order to maximise multi-channel & cross-channel opportunities, both order fulfilment and stock control are of paramount importance.

John Scully - Business Development Manager at 3PL adds:

“3P Logistics and Linnworks are a natural fit”

“Together we provide the ideal combination for any online retailer seeking to expand its market place and grow its business. The partnership has already seen us subscribe over 20 of our online clients to the Linnworks platform and they are now reaping the benefits of automation and increased sales.   The process of outsourcing your order fulfilment and expanding your selling channels is simple and has never been more affordable”.

For more information visit www.3p-logistics.co.uk

For more information visit www.linnworks.com

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

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.

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?

M-commerce. It is getting bigger.

Have you considered M-commerce?

M-commerce is getting more and more popular these days. According to TolunaQuick, the percentage of people using mobile phones for shopping has increased from 13% in 2011 to 25% in 2012. As the number of smartphones increases and the perceived safety of m-commerce improving, we can assume the figure to go up again in 2013.

The graph below segmented the age groups of 1000 respondents. We can see that younger people are more likely to shop with their mobile phones. So if your products are targeted at the younger age group, a well designed mobile site would probably be beneficial.

Graph from E-consultancy

The report also finds out that 43% of UK respondents have used their mobile to compare prices and look at product reviews. Maybe you can consider putting this function into your mobile site to boost traffic too?  

$21bn! So... what is so 'great' about Amazon?

Three days ago, The Guardian reported that Amazon was 'expected to reveal a cash pile of up to $9bn sales'. Three days later, we realise we are all fooled. Amazon 'unveiled record Christmas takings of $21bn', which is equivalent to £13bn.  This has resulted in a $12.4bn cash pile for the leading online retailer. 

Starting as an online bookstore, Amazon has worked hard to expand its trading product range, taking market shares from both bricks and clicks rivals over the years. Now you can basically find anything on their website. This makes us wonder - how does Amazon achieve its leading position in the market?


Amazon Stock. (adopted from CNN Money)



1. Stubborn on vision, flexible on details.
According to Jeff Bezos, the founder of Amazon, stressed on the importance of being both stubborn and flexible. I interpret the 'stubborn' as 'persistence' when you experiment, and 'flexible' as 'creative' when you have to come up with different solutions to a problem.  I guess this applies to every single successful entrepreneurs, such as Steve Jobs and Zuckerberg.

2. Expands by experimenting
Amazon leads the market by being innovative. They are the first few companies who offers free shipping, monthly shipping plans Prime, Kindle the reading tablet, etc. Of course there are failures too such as the auction function and the A9 search, which you may not even have heard of. However, trail and error is the only way to go through to reach success. Never be afraid to experiment, as Bezos said 'what is dangerous is not to evolve'.

3. Focus on customer experience
Bezos once said that their goal is 'to be the earth's most customer-centric company'. Amazon always focus on improving the online shopping experience. Look at every single details when you buy something from Amazon, then you can see how tailored everything is - from the layout of the webpage to the small fine prints at the bottom. This has completely changed the traditional way of online retailing which simply displays the product with a shopping cart. 

We cannot deny the success of Amazon's vision and business strategies. However, this still does not explain the $21bn? 

This particular paragraph on The Guardian may have explained it:

"Amazon has put this money out of reach of the tax authorities by managing its European operations from Luxembourg. Profits collected in the UK and other major markets are funnelled out via a network of subsidiaries, in the form of royalty payments for intangibles such as use of the brand or technology developed inhouse.

With politicians in recession-hit economies looking to balance the books, Amazon's savings could take a hit. The British prime minister David Cameron took to the stage at the Davos summit to call for companies to pay "proper taxes", and the French and American governments are pursuing Amazon directly."

Well, where are the moral principles?

Royal Mail Fuel Surcharge

Ouch. Just saw this news on the Royal Mail website. It is understandable though - since the cost of fuel has been increasing these days. It is also a good way to cover other costs simply by using the term 'fuel surcharge', since it seems more acceptable than any other reason. In fact, many other couriers have added surcharge into their services already so it is only a matter of time that Royal Mail joins its competitors. As suggested by Tamebay, the fuel surcharge will 'simply bring them into line with other carriers'. 

The question is, would the fuel surcharge lead to a loss of customers? 

Royal Mail has good authority and is considered reliable. It is relatively cheap as well. However, it has a record of postal delays (for example after strikes), and that other couriers are offering something extra such as free collection service or free tracking. It would be a no-brainer for customers to switch to better options if Royal Mail matches the price of competitors by adding the surcharges. 

PayPal: 'Aggressive changes' to relax frozen funds policy.

I am sure most of you are familiar with the name PayPal - an online payment processor owned by Ebay. It is a convenient service since you only need to log in and click a few buttons to pay, and it works on mobile platform as well. As a consumer we love it, but there are mixed reviews from retailers. 

There are a variety of reasons that can result in negative attitude towards the company, but the most common one has to do with 'frozen funds'. Of course, when the problem involves money, people can go a bit crazy. PayPal's fraud filters have frustrated customers for years, since the process of proving you are no scam can involve a lot of paperwork and time. The typical routine freezes your fund for 21 days if fraud risk is suspected, not to mention that PayPal has the right to extend the freeze to up to 180 days. You will then have to provide the requested documentations (for example months of sales record) for investigation. This means people's money can be held for quite a while, which can directly make an impact onto their businesses. 

'Aggressive changes' were the words used by Anuj Nayar, the senior director of communications in PayPal, to describe their next action. Promises have been made to improve this fraud filter system within the next several months. However, details are still insufficient at the moment. PayPal states that transparency will be the key and that they want to ‘be clear about how people can get out of the situation’.

Despite losing some customers over this problem, PayPal is still the giant in online payment industry. What are your thoughts? Is it too late for the company to change? Will you still use their services for your online businesses? 

Why Blockbuster becomes the latest casualty.

After the collapse of HMV and Jessops, Blockbuster has become the latest retailer to admit that it is struggling. According to Guardian, the store will remain open but the administrator will be looking for buyers. It is estimated that 528 out of the 1,400 shops will be closed.

So what is causing all these tragedies? According to analyst Glyn Mummery, ‘Online retailing has caused a bloodbath in the electronics and entertainment markets for old-school retailers.’

So what is causing all these tragedies? According to analyst Glyn Mummery, ‘Online retailing has caused a bloodbath in the electronics and entertainment markets for old-school retailers..’ 

Indeed, Blockbuster fails to evolve with the market effectively. Let alone all those downloading activities, its rivals such as Lovefilm and Netflix are branding and promoting their online rental services vigorously, yet the Blockbuster’s image remains as bricks-and-mortars stores only,  which you have to  drive all the way there in a cold winter night to grab a DVD.

The key is to achieve a balance between bricks and clicks. For example, John Lewis has worked hard developing their online retailing sectors as well as maintaining their high standards in their bricks and mortar stores. They have seen a 44% increase in online sales this year, accounting 25%of their total Christmas sales. 

“We call it a “bricks and clicks” story,” says Mr Street, managing director of John Lewis. “People may place orders online, but they still want to come to see and touch things and have a social experience.”

Well presented, clear and consistent site navigation (John Lewis online store).

But the big question is - how many more retailers are struggling out there? One thing we can be certain of is that there are big business opportunities in the online world. If you are looking to start or even expand your online businesses, 3PL will be more than happy to give professional advice.

3P Logistics centres upon a simple belief that  “every business irrespective of its profile should have access to a quality and affordable supply chain service provider”. Since initial go-live in 2006 we are now firmly established itself as one of the UK`s leading providers of ecommerce and order fulfilment services to online retailers trading via the various channels 

The fall of giant? The Google monopoly

Google - the search engine monopoly has always been influencing various industries (and even give birth to the SEO industry) by controlling each and every webpages’ rankings and positions.

However, even giant can fall. Yes, it is all over the news that Google is currently facing the threat of 'regulatory sanctions’ in EU. According to ITProPortal, Google will be forced to change the way its search results are presented soon, since it is suspected that Google has been using its power to divert traffic to its own services such as Analytics, Advisor, Local, etc. In another word, it has been providing users’ choice via their own Google products, instead of natural SERPs. This forces competitions out of the market by eliminating their competitiveness in terms of organic search rankings. This behaviour should definitely not be encouraged.

In fact, this is not the first time that Google has been charged by the EU. Just three months ago Google was accused of gathering user’s personal information in an inappropriate way. As a daily user of Google yourself, what are your thoughts on it? Are all those efforts of SEO worth it? Are we too reliant on the giant? 

The Busiest Day for Online Retailer

As you may have already known, Christmas is the busiest season for retailers. Everyone is buying gifts for each other and celebrating these special days with their families and loved ones. This means people are spending – and online retailers are certainly benefiting from this festive atmosphere as well. Statistics from Experian Hitwise show that, this Boxing Day has been the busiest day ever in the e-commerce history. Consumers were making 107million visits to retail website on Christmas Day. Compared to last year, an increase of 71% could be seen. The winner was... unsurprisingly, Amazon, which topped over eBay to become the most visited site on Christmas Day, accounting 12% of all online visits.

However, retail therapy for the UK population did not stop after Christmas Day. Instead, there were a whopping 113million visits to retail website on Boxing Day. This can be due to the early kick off of January sales and discount. Indeed, Experian Hitwise has confirmed this by stating that on Boxing Day, 1 in every 125 searches conducted in the UK included the word ‘sale’ or ‘sales’.

As a e-retailer, make sure you are well prepared for next Christmas to have a share of the cake. For professional advice on e-commerce strategies, 3P Logistics can certainly guide you with their expertise and experience built over the years.