Running a Daraz store has a lot of hidden costs. Apart from the commission that Daraz charges, managing a Daraz store includes not only inventory management costs, but also human resources costs which are necessary if you want to achieve growth for your business.
The Daraz Seller Center is the control room for your Daraz store. Through this control room, you can list products on your Daraz store and also manage your orders. Your store performance also comes up on the seller center. Up to the mark, performance means more opportunities to participate in sales and get featured as seller picks! However, the hidden costs in managing the operations of your store might be reducing your store’s profitability, and maybe even attaining potential growth.
There are many different ways you can stay informed about your store’s performance and expenses. Not just this, you can use these tips for your website sales as well as sales through other platforms. Following are the ways that you can save money on your Daraz store:
1) Get an Inventory Management Software
Inventory is the heart of any business. Proper inventory management means reducing wastage, eliminating stockouts, and assuring quick and efficient order fulfillment. When running a Daraz store, you must manage your inventory so the need to cancel orders because of running out of inventory is eliminated. This is important because order cancellations harm your performance at the Daraz store.
Daraz just allows a 4-5% cancellation rate, which means out of 100 orders, canceling 4-5 orders is allowed. Although a 100% fulfillment can lead you to deliver better performance. If you are taking orders through your physical stores, Daraz stores, as well as your website, you need to get an inventory management software. This is because manually managing the inventory can be pretty tedious and also costly. Most of the costs might be related to the salaries of inventory managers and human errors in the process.
A centralized inventory management software can, therefore, let you reduce the hidden costs associated with inventory control. So, whether it be multiple platforms, Daraz stores, or multi-warehouses, inventory management software can keep your expenses under control and also bring efficiency to your business. Good inventory management software also forecasts the demand, letting you know in advance when you have to restock.
2) Manage Order Fulfilment Expenses
Another hidden expense is order fulfillment. While it might take a few employees to place orders for the day onto the courier company’s website, it is quite costly for such repetitive work. You might consider getting software developed or retail management software to manage your courier services.
Another cost associated with order fulfillment is the human error related to accounting for multiple courier companies and the bulk of orders. With the cash-on-delivery service being quite popular amongst the customers, courier companies have different pay cycles. Keeping track of those along with fulfilling orders effectively can reduce your hidden expenses. This is because mismanaged orders can lead to dissatisfied customers.
You can also invest in a parcel tracking software for your customers which can help you to deliver a hassle-free experience to the customer, increasing customer loyalty and lifetime value of the customer.
3) Customer Relationship Management
Since we are talking about customer loyalty and lifetime value, customer relationship management is one of the key activities to save money on your Daraz store and your business in general. In this competitive business environment, good customer relationship management can be a point of differentiation for your business. This includes handling customer complaints and returns effectively, responding to and resolving customer grievances, and delivering impeccable service from when they place the order to the usage of the product or service.
Since managing customers requires the human emotional intelligence which automated systems do not possess, here you cannot save money through automated processes like chatbots. Although chatbots can help in engaging the customer when they first come to your store or website. In CRM, you can save money by centralizing the management of customer complaints like handling customer complaints from a single platform. This way you can save money on future marketing expenses and attain loyal customers which can direct more customers to your website or store. Remember: 1 satisfied customer brings 3 more!
4) Stay Informed
When we talk about running a Daraz store, we know that maintain the performance scores are quite important. This can only be done so if you are informed about the performance, the demand hikes, and low-performing products on your list.
Investing in human resources or a platform can help you get weekly or monthly reports on the performance. This way, you can strategize, get rid of dead inventory, and know what you should be investing in. Smart investments and divestments are only possible when you are informed about your business in turn leading to better performance. Participation in the much anticipated Daraz sales and getting featured as seller picks because of good performance can lead your business to increase their growth exponentially.
5) Expense Management
One final way to save money is to know what your expenses are. Hiked expenses especially when sales and profitability are low can lead to jeopardizing issues for the business. With a growing business, it is important to keep track of drawer cash. This way you can detect employee frauds which might be adding expenses to your business.
Detailed reports through a good POS software can help you understand the spending of the business and also the losses’ location wise, category wise, and employee wise. This way you have control over the expenses saving you money which you can invest in your business to grow!
These five tips can help you to save money not only on your Daraz store, but on your website, and your physical stores. However, these tips do not suggest you save money by compromising on the needs of the business to grow. Smart savings lead to smarter investments and thus, returns. Automating some things and prioritizing others can not only transform your business but also increase profit returns.
Kamil Riaz Kara is an Digital Marketing + SEO Expert in Karachi, Pakistan. He design complete digital strategies from SEO-friendly website design > SEM > SMM > PPC to SEO.