“Watch the costs and the profits will take care of themselves.” – Andrew Carnegie
Want to make more money? Then start spending less! If we sound a little bit like your parents telling you to “save for a rainy day”, we’re here to say they were right!
Before we can start with reducing business cost, you need to first identify what your business costs are and which of those expenses have room for improvement. This may seem like a tricky task at first glance, but it’s simply a matter of following the right steps.
We will list out ways to achieve that goal-
Affordable Trade License in Dubai
Now is the right time to start working on that dream E-commerce Business.
If you intend to trade internationally, then the Free Zone will be suitable for you. Free Zone packages start at very low cost, depending on a number of visas, the nationality of partners, etc., fees go higher.
Mainland jurisdiction, despite the fact that it is slightly higher in terms of license fees, currently offers exceptional no down payment licensing, with up to 12 installments plan of license payment, no office requirements, and many other reduced costs.
Hire Outsourced Accounting Company instead of Dedicated Staff
Hiring a full time Accountant in Dubai to manage your company’s accounts can be an expensive proposition. The costs involved in terms of salary, gratuity, leave enhancement and employee overheads can be reduced by outsourcing such functions to a team of experienced professionals.
Our Outsourced Accounting and Bookkeeping service helps companies to maintain their set of books in complete order, compliant with local laws and reconciled with various statements. This is the minimal requirement for any company, whether it is a startup or a Multi-National entity.
Advantages of Outsourced Bookkeeping Services:
- Save valuable time for your company, allowing your organization to function more smoothly and soundly.
- Save costs by outsourcing instead of hiring a full time employee.
- All type of laws & regulations advisory
- Get your monthly accounting reports on time.
- Get to meet our experts and understand the story behind the numbers.
- Get ad-hoc advisory and updates from our team so that your accounts are fully compliant to local regulations.
Reduce Product Returns in E-commerce Business
Returns cause a major headache for online businesses. Whether you’re just starting out or been in business for years, returns mean time and energy spent processing additional (unexpected) packages, issuing refunds and trying to keep the process positive for the customer so that they don’t run off to one of your competitors as soon as they get their refund.
Our tips for reducing your returns:
- Make sure every product listed has high quality images and descriptions
- Implement size guides and fitting tools
- Ask your customers for reviews and reward them for it.
- Become a pioneer of outstanding customer service
- Get every order right, first time
- Priorities your packaging
- Analyze. Adapt. Overcome.
- Be the email wizard of your industry
- Lengthen your returns policy
- Make returns the best experience possible for your customers
Negotiate with Suppliers
Let’s face it, virtually every day in business we are called to negotiate. Whether it’s convincing a new customer to buy or working on a deal with a supplier, negotiation often plays a central role in your success. With the impact that negotiations can have, entrepreneurs should prioritize negotiation training as a way to enhance their negotiation skills.
Our tips:
- Before you make a move, complete basic background research. Conduct in-depth research and create a preliminary list of potential suppliers.
- What is your target benefit? Is your target benefit a lower price, better payment terms, upgraded shipping, higher quality, more comprehensive services or reliable delivery schedules? You should set your eyes on the specific benefits you are looking for from your suppliers/vendors.
- Putting your priorities in writing is often essential. A sound negotiation strategy should define your goals and specify where to draw the line and withdraw from the deal.
- Avoid wasting your time asking for a benefit from junior staff. If the account manager you are negotiation with is not the decision maker, then they have no authority to offer any benefit.
- Often, shopping around can be done during the research process. Shopping around means exploring the available options to find the best suppliers/vendors for your needs.
Negotiate Lower Credit Card Processing Fees
With everything e-commerce business owners have to think about, credit card processing fees may not be something that automatically comes to mind. The fees may not seem like a lot by themselves, but those small percentages processors take for every transaction can quickly add up. And when you combine transaction fees with assessment fees, authorization costs and monthly fees, your monthly credit card processing bill can balloon to an astronomical amount.
- Negotiate with credit card processors.
- Reduce the risk of credit card fraud.
- Use an address verification service (a system that verifies the cardholder’s billing address with the card issuer).
- Properly set up your account.
- Consult with a credit card processing expert.
Automate Your Business
If you haven’t used any of these strategies yet, then you still have truckloads of work ahead of you. But before pursuing these frontiers, you should take a step back and look for opportunities to improve what you already have.
Key points:
- Every online business needs an email marketing strategy for lead generation and nurturing.
- If there’s one thing that can convince your audience to buy from you, it’s the review or testimonial of a previous customer.
- Inventory management is one of the most tedious aspects of running an e-commerce business. So integrating your e-commerce platform with an advance accounting software.
- Requesting for payments can be frustrating, especially if you have to manually create and send every single invoice to your customers. The good news is, many payment and accounting platforms today allow you to create recurring invoices within minutes.
- Simple AI (Artificial Intelligence) tool like It’s Alive, you can easily develop your own Facebook chatbot without writing a single line of code. It can help you build conversations that are directed by what the user types or clicks from the available choices.
Spend Marketing Funds More Effectively
Growing your e-commerce business can be done in many ways. You can find new niche products, hire influencers to become brand ambassadors, or launch a new ad campaign.
Small business owners, whether in e-commerce or restaurant and hotel, should never overlook the importance of marketing. No matter how good your products or services are, people need to hear about them first, and marketing is the best way to spread the word and increase sales.
Our Tips:
- Develop a marketing Blueprint
- Identify your customer
- You should have a story behind your brand from which the customers can relate
- Involve your customer in your product development journey
- Market on social media and ads
Horizon Biz Consultancy Services:)
Horizon Biz Consultancy is providing tailor- made services in this area also since we have helped a lot of Startup Companies in the UAE.
Horizon Biz Consultancy is experienced in e-commerce business cost reducing process. Our qualified accountants are experienced working with Amazon, eBay, noon, Stripe, Shopify, Magento and many more popular e-commerce platforms.
We can provide you UAE’s best Business Setup, Accounting, Taxation, Finance Consultancy, and other allied services. We are working since 6 decades. And years of experience will never let you down. We have an exciting offers and discounts for you.
Call us Now, For a Free Consultancy!
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