Last updated on February 5th, 2016 at 02:03 pm
With your current ecommerce system you receive email notification of every order. The order is keyed in Sage sales order processing where it is allocated, picked, packed and invoiced. The details are then keyed into the carrier’s system sitting in the warehouse to produce the shipping labels and the order goes on its way.
This order is for £30, you charge £5 shipping at cost and will make £15 with your 50% margin; however, the order was incorrectly keyed and you have sent the wrong goods. It takes your staff half an hour to sort out a return (£6 labour cost), the return costs you £10 and you make a full refund to the customer of £35 including £5 shipping. You are now £21 out of pocket. Worse still, when you receive the return it cannot be restocked and is scrapped at a loss of £15. You are now £36 out of pocket and with the 50% margin, you would have to make a £72 sale to recover your costs. You would need to make a sale of £102 to get back to the position of having £15 in your pocket.