What Is SKU Profitability?
SKU profitability reporting allows merchants to analyze how one product is performing compared to the others. Many companies make the costly mistake of concentrating solely on increasing sales. Even if you’re achieving your sales targets, mismanagement, overstocking, and high shipping or service costs can put you out of business. The most significant factor is profitability, not revenue. Would you be able to tell which product performs the best and the worst if you look at them right now? How do you tell which things are doing well on a particular channel and which aren’t? You could lose money if you’re not paying attention to the manufacturing and other related costs. The solution to this issue is SKU profitability reporting. The secret to increasing profits is to monitor the output of each commodity. Unfortunately, it can be difficult to remedy if you can’t pinpoint which product is causing you to lose money. How to calculate the SKU Profitability If something isn’t making you money, you should change the strategy or stop doing it. Ask yourself if the cost is shipping too high, or the price is too low. Is there anything you can do to improve your marketing? Could you package it with high-selling items to attract more customers? You’ll need the data to measure your profitability by SKU if you want to address these questions. COGS information FIFO or first in, first out is one of the methods to monitor SKU profitability. It determines the cost for the oldest inventory purchased and multiply it with the total number of inventory sold to get the cost of goods sold (COGS). This allows you to keep track of any cost changes for particular goods. Fees for placing orders This covers all costs associated with making a product sale. Costs of overhead The total costs of doing business, such as human resources, employee wages, supplies, and so on. Fees for shipping The expense of using shipping company facilities such as UPS and FedEx Insurance premiums Any costs incurred as a result of the product or shipping insurance. Fees for fulfillment Any costs incurred as a result of using a 3PL or Amazon FBA to fulfill orders. Why should businesses track SKU profitability? Seeing the big picture is beneficial because it clarifies how the company is doing and where it is headed. However, you cannot solely concentrate on the larger image at the expense of the finer points. Revenue is satisfactory, but it means nothing if the sales aren’t profitable. You must look at your company on a more micro level to see how it is doing if you want to optimize its profits. Different goods have different abilities to sell and benefit. If you don’t look at the details, you won’t be able to make the educated decisions necessary to increase profitability. Tracking SKU profitability can help your company in various ways, but it’s a skill that many businesses lack. Analysis of the costs It’s difficult to know how much money you’re making when selling your goods on several platforms. Each platform charges you differently, which may affect the profitability of your various SKUs. Performance of the channel You need to know how you’re doing through your various distribution platforms just as much as you need to know how much money you’re making from each sale. For example, if you just look at your total income, you might not notice that your Amazon revenues are significantly lower than your eBay sales. Return on investments in marketing It’s pointless to have a $20 landed cost for a product, spend $10 on ads to get the deal, and then sell the product for $30. In this case, marketing is surely boosting your sales, but it doesn’t mean you’re making any money. Understand customer perspectives SKU-level research helps you to gain a deeper understanding of your clients. For example, you may have some barely selling items, but if you aren’t paying attention to a micro level, you won’t notice as quickly. Understanding your consumers’ purchasing patterns and expectations helps you focus your efforts on the SKUs that are most likely to succeed. If you’re opening a store on BigCommerce, applying an automation app to get insights from the data will bring foundations for successful business strategies. One of these automation apps is Atom8, you can explore it here: This app helps your business automate store management tasks and maximize business efficiency.
How To Migrate To BigCommerce From Magento
Are you thinking of switching from Magento to BigCommerce because your platform isn’t cutting out anymore? The BigCommerce system is cheaper and more convenient for merchants with limited technological capability, making it the perfect platform to migrate to. This requires a new design, development, and a few third-party tools. However, your store would eventually operate more smoothly and flexibly. How To Migrate To BigCommerce From Magento Pre-migration planning and Pre-migration Before you start moving the product catalog and store settings, make a list of what will and won’t be driving. Next, add all the information you have, including groups, clients, and goods. Bundled applications, obsolete content, store settings, and legacy apps are all items that would not be removed. You can choose one of the BigCommerce templates to start your storefront. The platform offers various free themes, each of which consists of multiple variations. Provide the information and the source Please include the latest Magento store URL as well as your login credentials. Keep the most linked-to URLs and pages with their native structure in place and bring them over from Magento to launch the website effectively. Choose the data you want to migrate Select all you want to move to the new store and leave out unnecessary information. Migration is an excellent opportunity to update obsolete content, consolidate URL structures, and streamline the website’s functionality. Configure a test migration It might be tricky to migrate all information to BigCommerce.Thus make sure the boat floats before getting in. It’s a good idea to test a demo migration with a small sample of your shopping cart data. Before transferring the entire contents of your server, make sure that all items, photographs, and descriptions function correctly. Begin the whole migration process It’s time to migrate all assets to BigCommerce after a good test. Your information would most likely fall into one of the following groups: SKUs, product details, and assets (like images) Product categories Customer order information (historical, pending, completed, etc.) Redirects with a 301 code It’s a time-consuming process, but there are ways to make it easier. BigCommerce, for example, offers a free Magento data migration tool as well as several third-party tools, such as Cart2Cart, that make the data migration process more accessible. Start user testing in the new store After you’ve finished the primary setup, it’s time to troubleshoot and customize integrations from inside your staging area. It’s essential to double-check that all third-party APIs are working correctly. Furthermore, before launching, BigCommerce recommends that you review the following features: In the form of a test order, checkout, payment processing, and shipping are all performing well Integrations with Third Parties (CMS, shipping solutions, email marketing app, and other software) Design Elements of SSL Certificates and Mismatches on Product Pages Setup for SEO (like metadata) as well as Connection Redirects Confirmations via email Accumulation of Loyalty Points Navigation Menus Sensitive You might have to merge built-in core features with some third-party apps to launch the new store after a BigCommerce migration with the same functionalities as before. Hence discuss with your developers what store elements you want to customize. Some of the most effective app on BigCommerce are Atom8 – the automation workflow integration and BackOrder – the backorder solution. Atom8 on BigCommerce: BackOrder on BigCommerce: Conclusion There might be some problems that occur in the weeks following migration to BigCommerce. Execute continuous user testing to ensure the site’s proper operation. Users would quickly identify any glitches or bottlenecks in the hosting, product catalogs, or checkout processes.
A Brief Guide To eCommerce Delivery
“What types of shipping methods should I offer?” you might ask. The more eCommerce delivery options you have, the more likely your customer will complete order in your store. Here’s an overview of five standard e-commerce delivery options to consider for your customers. Types of delivery options Same-day delivery This method allows customers to receive the package on the same day that they palace an order. However, if you want to provide same-day shipping, you’ll have to work with a reputable fulfillment eCommerce shipping company. You should also consider the timing. For example, is it possible for same-day delivery if the customer requests a product at 7 in the evening? Overnight delivery Overnight delivery has become more prevalent in recent years, with 18% of people requesting next-day delivery. Yet the price varies among several fulfillment providers and shipping companies. Two-day shipping Even though many brands offer same-day and next-day delivery, two-day shipping is still preferred for being relatively fast with reasonable prices. In reality, 44% of respondents said they were willing to wait two days for their orders. So, if you’re looking for a good mix of pace and price, 2-day shipping could be the way to go. Extensive shipping times People always want their package to arrive quickly. However, many are willing to wait for a few days: 21% of people are willing to wait 3-4 days, and 10% are willing to wait 5-7 days. Just 2% of people, on the other hand, can wait 1-2 weeks. In other words, the eCommerce delivery time of under one week is still fairly acceptable. Types of E-commerce shipping rates You can charge customers for their chosen delivery choice using various eCommerce shipping rate structures. There are five different eCommerce shipping rate options to consider Fixed-rate Customers are charged the same fixed rate regardless of what they order, known as ‘flat-rate delivery.’ Bittermilk, for example, provides customers with an $8 flat-rate shipping option. In addition, some eCommerce businesses offer several flat-rate shipping costs for some order value levels, weight ranges, or other classification categories. If you deliver flat-rate delivery, ensure that you charge the average shipping cost to break even. Real-time carrier rates It’s possible to deliver real-time carrier rates during checkout if you integrate your website with eCommerce shipping services. You may use this method to charge the actual shipping rate for each order depending on the recipient’s location and delivery preferences. Customers would get complete transparency and the ability to make their own decisions due to this. Free-shipping Many eCommerce companies offer free shipping to increase conversions, lower cart abandonment rates, and create customer loyalty. There are two critical strategies for providing free shipping while remaining profitable: Raise the price of the products to account for shipping costs. In order to qualify for free shipping, customers must pay a certain amount. As a bonus, this choice can encourage customers to buy more than they planned. Package Free Shop, for example, provides free shipping on orders over $35 in the United States: Shipping in a hurry You can meet the needs of consumers who need (or want) their order quickly by offering expedited prices, such as same-day or next-day delivery. So, even though you charge extra for expedited delivery, it’s a good idea to have this option. Track your delivery with Atom8 Atom8 is a workflow automation app that allows merchants to convert repetitive tasks into workflows that execute whenever needed. It is not easy to keep track of every order when you have a large number of customers. However, if you don’t, you might get into trouble should any package gets lost or damaged. With Atom8, you can set up a workflow to change the delivery status in your system whenever your shipping partners update it. What’s more, with the ShipStation integration, you have the best combination for order management.
How To Plan An eCommerce Migration
Even if you’re well aware of the flaws within your website, you might hesitate to relocate your website. eCommerce migration can be expensive and time-consuming, and the main question is whether it’s all worth it arises. When looking for a new solution, there are several things to consider: do you go with a headless commerce platform or an out-of-the-box solution? Or do you stick with your current platform and try to update it instead? What data do you need to move? Should you switch hosting companies? Should you get a makeover for your storefront? When choosing a new eCommerce solution, it’s important not to jump in headfirst. After all, this is a decision that will (should) last a long time. It will almost certainly put a financial strain on the company during the transition. Therefore, you want to make sure you’ve taken the best long-term decision possible. Define the scope of the project It’s important to know what you want from your new platform to succeed. This is not just for the present but also for the future. Some questions to ask yourself are: Do you want customization and personalization? Are you considering further expand your eCommerce networks in the future? Do you want to make your content more localized? Is there any complex business software stack that your preferred solution would integrate with? Create a diagram of the technology stack and design Make sure you have a clear picture of your technology stack before you relocate. This enables you to understand how many changes your business is going through. Discuss with your team: How can your processes work together? How can your new eCommerce solution fit into your current operation? Is it simple or difficult to incorporate your current infrastructure into the new platform? In addition, your team should be reliable to determine what work needs to be done to ensure that the processes necessary to enable the technology infrastructure you want are in place. Product catalog The product catalog is the most critical data of your content and your source of profits. Make sure you move to a solution that can easily replicate your catalog layout. Otherwise, it’ll negatively affect the production time. Similarly, ensure that your inventory management system is compatible with the latest approach. Orders and customers Customers and orders must be migrated, especially those still unfulfilled or unprocessed, for the migration to go smoothly. It’s necessary to discuss privacy protection during an eCommerce migration. Make sure your customers’ passwords are updated by sending them a password reset connection. Another way is to send them an email explaining the migration and the need to change their password. Taxes, reporting, and shipping Make sure you don’t forget about the cornerstones of what makes your store tick, such as the customer support service or shipping partners. Creating a custom solution is akin to kicking at an open door as many third-party providers are dedicated to these areas. Even if your current solution has served you well for years, take a look at what best third-party solutions are offering. Then consider plugging in a third-party service that will save you a lot of development time and money while also allowing your company to expand.
