E-commerce businesses are popular. They can have fewer barriers to entry than establishing a brick and mortar location. However, it’s still quite easy to go over budget and negatively affect your profits. 

Here are a few small ways of cutting costs when running an e-commerce business.

fine-tune your marketing

Marketing is essential for attracting customers to your e-commerce business. However, it’s important that you invest in effective marketing strategies. As a web-based business, Google ads should be your first stop to driving organic traffic.

Google employees a process that involves collecting and analyzing data from existing ads to provide you with the data needed to assess which ones are working.  This is done through conversion tracking, and it works.


spend less on shipping 

Many e-commerce businesses spend too much on shipping. This is because they often don’t compare shipping quotes. Want to compare UPS shipping quotes? There are sites that can allow you to easily do this. Using one of these sites, you can easily find the cheapest option without having to manually collect quotes from different companies.

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keep packaging simple

Try to keep packaging simple. Don’t use unnecessary filling and resist adding too many extras such as flyers and brochures. They’re often discarded and only add extra costs. The most important thing is that the products are protected from damage in the shipping process.


revise your return policy

Constant returns can start to seriously eat away at your revenue. If customers keep returning products, it could be because there is a problem with the product.  However, you may also want to explore additional ways of reducing returns.

One surprising way of reducing returns is to lengthen the return period. While this may seem counterintuitive it can be an effective way of preventing returns. Often, when customers have more time to return a product, they become more attached to it. They may also feel less pressure to have to return it before the looming return date deadline.