A core aspect of profit optimisation for online is improving margins & streamlining the fulfilment chain.
Customer Price Expectations
Customers clearly expect the online price to be the same as they will experience in store & advertised while also recognising that online visitors may never have stepped foot inside a store and seen those prices.
Sub-branding of the headline brand facilitates products being sold for different amounts than those in the shops by disassociating them from the headline brand and attaching them to a pseudo online brand, such as Upperclass. The price can be tweaked to suit.
The power of “free” shipping
“Free” shipping not only encourages customers to spend more but it also changes the relationship with the customer. Customers are significantly more tolerant of rare issues when they’re not paying for shipping. It massively reduces the customer service call rates on “Where is my Order?” that reduces the overheads.
Picking, Packing and Shipping fragile food & drink through a national delivery network such as DPD requires a lot of optimisation to keep overhead costs low and also to ensure the products arrive in good condition. Taking care at the beginning ensures the customer receives their goods as expected and encourages them to re-order and share their experience with friends & family.
Technical elements are put in place to smooth the labour intensive fulfilment process, which minimises pick errors with order & product validation at every stage.
The automated systems keep the customers proactively informed of the status of their order to mitigate support calls and build customer confidence.
Technical Infrastructure Costs
The technical custom platform below is optimised to minimise overhead costs through elastic scaling to meet the immediate demand within a 5 minute period. E.g., the system will scale up automatically during a TV advert then scale back down afterwards, it will scale down during the quiet hours during the night.