So you started with an idea to try online retail and today you are an e-commerce businessman. People buy products from you everyday, through your website or an online sales channel that you subscribe to. As you spend more and more time on the online marketplace, your venture starts growing in a complicated manner.
Consider a business to be like a large machine, made up of smaller parts that link together to run it as a whole. These parts can be the warehouse, logistics, marketing, product supply, order management, etc. It is your job to make sure that each of these parts function healthily and in tandem with each other, which results in a steadily growing business.
Of course, there are external factors to consider too – market fluctuations, demand scarcity, competition, etc. These are factors you can’t control, but can only be ready for. So how to measure if your online retail business is healthy and growing? What metrics to focus on? Let’s look at it further in this article.
Operating costs include the resources allocated in all operational processes of the company. These include product packaging and delivery, server and website costs, rent, warehouse costs, etc. The idea is to check whether maximum efficiency is maintained while allocating operational costs and to weed out leakage of resources.
Your online retail business is working on a capital. This includes your property, equipment, workshop (if you are a manufacturer), inventory, receivables, payables, etc. Here you will encounter whether you are using your company working capital in the most productive manner.
Commercial health is a marker for your sustenance and improvement over the years as an online seller. You can quantify your commercial health through metrics like brand recognition, customer satisfaction and regulatory risk. These factors directly contribute to the well being of your organization.
These are some basic factors that you need to be looking at while analyzing your business’s well being. For any more information or in case of queries, get in touch with Browntape. We are India’s leading multi-channel e-commerce solution providers and we are always happy to help!
Browntape helps retailers sell online on multiple marketplaces like eBay, Amazon, Flipkart, Snapdeal, etc. in India. They provide services and software that allow retailers to either outsource their online selling business or manage things on their own using their innovative inventory and order management software. In addition to that they also help sellers improve their customer experience.