Before and after selecting suppliers, cross-border e-commerce enterprises should conduct cost analysis at different stages in order to control costs. On the one hand, cost control is conducive to selecting suppliers suitable for cross-border e-commerce enterprises; on the other hand, it can also reduce costs, find profit growth points, and further guide suppliers to provide products that are beneficial to cross-border e-commerce enterprises. Generally speaking, there are several ways to reduce product costs:
(i) Analyze the product bill of materials and find cost reduction points
First, list the functional characteristics of the product, and then compare and analyze with competing products to analyze which functional characteristics can be discarded while maintaining competitiveness, and then adjust the materials corresponding to the relevant functions.
Take the keyboard as an example. On the premise of ensuring the stability of the keyboard, you can consider removing the counterweight block. This detail can reduce the cost of 3 yuan.
(ii) Optimize product packaging and reduce packaging costs
1. Determine the type of packaging
When it comes to packaging, companies may consider various factors, including the structural strength, safety, appearance, ease of handling, and material costs of the packaging material. Companies should first determine the type of packaging to be used, and then further narrow the cost
control range.
2. Optimize packaging
Optimizing packaging means further optimizing the size and materials of packaging. Not all products require multi-layer packaging. Enterprises should choose packaging according to product type, transportation and handling conditions. Fewer layers of packaging means that smaller boxes can be used; it is easier to purchase, handle and transport packaging materials such as boxes and small cans than large packages; tape, ribbon, foam plastic packaging boxes, bubble wrap, etc. should be used sparingly and only when necessary.
3. Use new packaging materials
With the development of science and technology, new packaging materials are common, and they generally have the characteristics of low cost and light weight. Bubble wrap, foldable cardboard boxes, air-filled bags, foam plastic sheets and foam cushioning materials are all light, easy to use and reusable. New packaging materials have become an ideal packaging choice for small and medium-sized enterprises.
4. Purchase packaging materials in small quantities
When purchasing cartons and other packaging materials, enterprises should purchase them on demand and not purchase excessive packaging materials at one time. As the design of corporate products changes and the production methods develop, packaging will also change accordingly. Small batch purchases enable companies to flexibly change packaging strategies and reduce cost burdens.
5. Invest in research and testing
Companies should purchase a small amount of packaging materials for testing before purchasing the entire inventory of product packaging. Companies test the effectiveness of packaging under simulated conditions and test the ability of packaging to withstand pressure during handling and transportation. Although this may mean investing some money in testing, in the long run, this can avoid companies from repeatedly choosing new suppliers or packaging materials.
6. Choose environmentally friendly materials
(III) Optimize distribution costs
Distribution costs account for a large proportion of product costs. So, how to optimize distribution costs with free or low shipping costs? You can optimize from the following 6 perspectives.