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How to Reduce Costs While Growing Your Ecommerce Brand

By Admin 3rd Jun, 2021

Any new business whether it is E-commerce or physically established their main source of growth depends on the customer base. Their primary motive is to attract as many customers as possible. But these customers are only providing you revenue, for actually making your business successful you need to earn profits. You can only generate high profits if you control your cost. Cost-cutting or Cost control is an effective method to help your business grow.

Your business should be moving toward achieving its goal and objectives. Rather than spending more and more on items try to cut your cost whenever it is possible.

Cost Control is much easier with Ecommerce as you can track every step like contacting customers, inventory control, accounts, and availability of products to the right customer, marketing, and much more. There are also some profit tracking app which helps you to track your profit, spending without hiring anyone else.

Down below we are going to provide you with some solutions that you can choose to reduce your Ecommerce cost and grow fast in their business.

Visit here for more information: Exact Profit is a SAAS app made for Shopify store owners to analyze the profit and expenses of their respective stores.


 Every penny that you spend on your Ad campaign must be utilized effectively to get the best results. You should calculate the return on Investment on every campaign. You can also use Shopify advanced report builder to gather all your reports.

In simpler words, if you are investing 2000 dollars in an Ad then at least you should earn $10,000 sales from it. With this, you can determine that the money you invested is giving you a better return and your marketing strategy is also working in the right direction. Return on Investment can be calculated by dividing net profit generated through ad by the cost of the ad and multiplying all of this with 100.

By using this formula you can know the position of your ad campaign. If your campaign is not giving you the desired Return on Investment then you should try knowing the reasons and work on it. The cost incurred on these ads is very high so if they don’t work as you expected them then you will not only incur a cost but you will have to bear the great loss.


You are an eCommerce business and all your transactions take place through some payment platform. The platform must be charging some amount from you for providing a safe platform for your monetary transactions.

Like if you are using Shopify as your main platform they provide you with different features like Shopify profit calculator app, Shopify store revenue checker, professional reports Shopify, and many other features to help and support your business. But to avail of all this, you have to bear some cost. If your business is generating $1 million from the platform, you will upgrade to Shopify Plus. From thereafter increasing further sales you can initiate talking about the transaction charger or the payment fee. If they agree to reduce or negotiate the prices then it’s a win.

But in other scenarios don’t lose hope if the negotiation doesn’t go well, you can do better sales. You can create a good background report to show them how you are doing good and start with negotiation again.


Shopping costs can bring many changes for your business, if the cost is too high then you are losing a lot of money and if the cost is reasonable then you will be able to generate a good amount of profit margin.

Let’s assume you are using the services of FedEx for your package delivery. You can try to negotiate with them about the price, discounts they can offer, fixed rates, reduction of some charges and much more.

Other than that you can work on your packaging. Try not to use very heavy and big boxes for packaging. Try to compose your packaging or use alternate boxes that provide full protection and coverage and are not heavy and big.


The biggest advantage of eCommerce is that you know your client and customer base. You have required data about their likes, dislikes, what kind of packaging they like, at what time they do the shopping and much more. Different analytic tools help to optimize all the data and help to know your customer better. 

With this diversified data you can predict your upcoming inventory, how your ad is working, what is the most sleeping product from your business. Is there a product that is not doing well?

It depends on you how you utilize this data and make revenue from it, but it will certainly reduce your cost of research and development if used properly.