#3 The Pain of E-commerce
🎯The Pain of Shipping and Delivery
Market Realist reported that package shipping expenses are among the larger pieces of Amazon’s cost structure. Given that the behemoth of e-commerce has issues with logistics, what can be said about the new or the evolving e-commerce start-up? Sure, it will have delivery issues too.
FedEx Corp. (FDX) and United Parcel Services Inc. (UPS) face new competitive pressure after Amazon.com Inc.’s (AMZN) latest push into the delivery space with its recently launched “Seller Flex” program as outlined by Investopedia. Practically though Amazon struggles to make the delivery process more effective and less intermediary.
🤔What does this concern signify?
One of the growing pitfalls of e-commerce lies in satisfying the client's needs in the urgent delivery of the product. Nearly 50% of e-commerce clients face at least one delivery issue annually. The most widespread problem, reported by 19% of customers, is the late delivery of the product.
🤔Why do these problems appear?
Customers don’t know anything about your cross-border relations with vendors or over millions of product development phases, they require what they pay for and need it right off the bat!
✅Unaffordable delivery? An E-commerce financial model can calculate the price of each product individually. The gimmick of the model is that you can type in your delivery fee, and shipping costs will be included in your product price. In case the price gets too high, it’s a signal, encouraging you to take another look at your vendors and their delivery offerings.
✅Prolonged delivery time? If you face shipping delays regularly and it makes an impact on the overall functioning of your business, it’s prime time for a change. If some of your orders arrive too late and you can’t meet the deadlines required by the customers, the use of financial modeling can change the situation for to better. Not only does the e-commerce model calculate delivery costs, but it can also take into account delivery duration!
🚩It’s ultimately all about your time, money, and customer satisfaction. Do not delay an instant! Download the E-commerce Financial Model for free and enjoy your benefits :) https://finmodelslab.com/e-commerce-financial-model/
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