Inflation affects anyone’s business in the UK and around the world. Knowing the state of the economy is essential when planning your ecommerce businesses’ financial year ahead. The latest report by Sky News shows that the inflation is at a first time low since November 2010.
The report released by Sky News this morning told us that the “consumer prices index (CPI) rate fell to 3.6% on an annual basis in January, from 4.2% in December.” Even though the cost for living is falling it is still “more than a percentage point away from the Government's 2% target.” They also reported the cost of petrol may be increasing but clothing and footwear costs have helped the fuel inflation last month. To boost the money supply, the Monetary Policy Committee is adding an additional £75bn to the economy on top of the £275bn.
What can you do to help your ecommerce business?
Competitively lowering the prices of your products can help to reduce inflation. This is a hard balance to achieve. Using the supermarkets as an example, they are constantly competing on lowering their prices. This includes their own branded goods and noticeably in the past 6 months they have included the competitive pricing of branded goods. They have launched many campaigns to keep their loyal customers; Sainsbury’s – Brand Match, Asda – Price Guarantee and Tesco – Price Check. Knowing what your ecommerce competition is doing is important but you can never forget what all people want in any situation, quality.
Whether you’re competing for food prices, household items, import and export it depends on the elasticity of demand and supply. If there is a way to save money using a supply company, fulfillment company or financial service that will cost you less this will inevitably loosen the belt on other departments.
Efficiency is important to your ecommerce website. Being more efficient means the unit costs fall, profits can be restored and the less likely you’ll have to increase prices.
At Advansys we can deliver an ecommerce solution that is 100% suited to your business. We are knowledgeable in everything about ecommerce and we can aid you in your quest to become the best at what your business can deliver. Contact us today on 0845 838 2700 or email us at email@example.com