5 Ways to Save Money as an Online Seller

International shipping, dealing with international currency exchanges, and more can seriously bring down online sellers’ profits and hinder their success as a company. If you’re taking your physical store online, understanding these cost factors upfront can help you build a more profitable operation from day one. However, there are ways for an online seller or those trying to make money on the web to save money on traditional costs of doing business globally in an online-only platform. Whether you’re just starting a business online or looking to optimize an existing operation, implementing cost-saving strategies from day one can significantly impact your profitability. By thinking out of the box and realizing that no savings are too small to make an impact, online sellers can streamline their business model and save money hand over fist in multiple ways.

Let’s look at five ways you can save money as an online seller and thrive in your businesses.

Using Online Money Transfer Companies

Currency exchange can be a huge expenditure for online sellers, and many of them don’t even realize that it’s taking so much away from their business’s bottom line. To keep things simple, many online sellers use default currency exchange programs targeted at online sellers. For example, Amazon’s currency exchange service charges a 4% fee. Although that seems like a small price to pay for currency exchange, the fact is that it adds up. Instead, online sellers should consider using an online money transfer company. Online Amazon Currency exchange alternatives offer currency conversion for sellers with excellent exchange rates, and no or low additional fees.

Use alternative shipping options

Shipping globally (or even just locally) can be incredibly expensive. Bulky boxes, padded envelopes, and other traditional methods of shipping can be costly. If the product you’re selling isn’t breakable or sizable, you should consider alternative shipping options. One example is coffee bags. The bags are lightweight, portable, and easily bendable. That makes shipping costs lower and still protects your product during the shipping process.

Alternatively, you can buy packaging in bulk from a number of online retailers. By purchasing in bulk, you’re helping ensure that you’ll always be prepared to fill orders, and you’ll be saving money on your overall shipping costs. You can also look to ship in bulk or see if your suppliers ship directly to your customers.

Streamline your software

There will always be newer, more expensive software options available to online sellers. When creating an online store, choosing the right eCommerce platform from the start can save you from costly migrations and software bloat later (see e-commerce definition). To save yourself money, streamline the types of software you use. Rather than always being willing to invest in the latest and greatest technology, take a step back and consider the big picture. If your current software works, you may not need a costly upgrade.

Additionally, you’re likely using software you don’t even need. If it isn’t actively adding value to your business, streamlining your selling process, or making you money, you may not need it at all. Save yourself money by being selective and reading through software reviews carefully before committing to a product. Making smart technology choices is just one aspect of building a sustainable online business. Our guide on eCommerce startup smarts helps you avoid costly mistakes and keep your business on track.

Focus your inventory

Are you offering too much as an online seller? Take a hard look at your inventory. In many cases, it’s actually more profitable to narrow the kinds of products you sell online (or flash-sell them). Too many products leaves too many options for customers, and too wide of a customer base, making it harder to market your business. Additionally, when you offer fewer products, you can often charge more as your merchandise becomes specialized or marketable to a “niche” audience.

Another added benefit: you’ll be saving money on supplies, product, shipping, and packaging materials, all while offering more specialized products to a more profitable customer group who are genuinely interested in exactly what you sell.

Ask for discounts

When you work with other online sellers to build your inventory, coordinate shipping, exchange currency, and more, you’re in a unique position to negotiate. All of your fellow online sellers are understanding of your position, and they stand to benefit from offering you a small discount in exchange for bulk purchases or your loyalty as a frequent buyer. When you ask for a discount, be upfront about your reasoning, and don’t ask for something that’s completely out of the question. If it’s a discount you wouldn’t be willing to provide, it’s likely not going to happen. But, even if the discount you score doesn’t seem like much, remember that a small discount here and there can go a long way.

These are just some of the ways online sellers can save money, and they ultimately boil down to the same concept. None of these money-saving tips will double your profits, but when you focus on running a lean online selling operation, small savings add up. By evaluating all aspects of your business spending, you can minimize expenses to maximize profits. Cost management is just one of many factors to consider before starting your online business. Comprehensive planning across all areas of your business will set you up for long-term success.

Next Up: Check out our “How to pay for large purchases” post or our “Guide To Starting An Electronics E-commerce Store“