In today’s rapidly developing electronic trading environment, businesses are constantly looking for innovative strategies to improve online sales and improve customer satisfaction.
One of the increasingly popular approaches is partnership with third -party logistics (3PL) providers. Outsourcing with storage, fulfillment and transport operations to reliable 3PL partner can streamline their operations and focus on basic activities such as marketing and product development.
However, wiring to 3PL is just the beginning. In order to maximize the benefits of this partnership and increase the growth of online sales, businesses must pay great attention to key performance indicators (KPI) and metrics derived from their compliance centers.
In this understanding guide, we dive into why it depends on the metrics, explore the necessary KPI for the success of electronic trading and discuss how businesses can use these metridizations of their operations and increase online sales.
Why does it depend on the 3PL metrics?
Before immersing in specific metrics, it is essential to understand why it depends on them in connection with the dirty electronic trade. Metrics provide valuable knowledge about your performance operations, including efficient, cost -effectiveness and efficiency. By monitoring and analyzing these metrics, businesses can identify areas for improvement, make data management decisions and eventually improve the overall experience with customers.
Order accuracy rate
The level of accuracy of the number of order is essential for maintenance customers and reduce costly return and exchanges. As the owner of the company searching for the highest percentage of order accuracy, it ensures that it excludes errors in your operations, leading to faster provision. Studies show that high -order accuracy directly correlates with increased maintenance and customer gain.
With the exact order process, your company will see your company in return, compensation and reward, which usually eat profits. Rats, which are less than 90%, can directly affect your company’s reputation. So how do you calculate it?
MISIALES = (Total Commands Fulled exactly ÷ Total Filled Orders)
Then multiply this sum of 100.
Let’s say, for example, your DTC brand has met 500 total orders. Of these 500 orders had 20 errors (for example, as a mispick). But 480 orders were fulfilled accurately. In this situation, the order accuracy would be 98%.
(480 ÷ 500) * 100 = 96%
So the question is, “Is it a good rate?” If your brand score less than 95%, you can find out that you lose your customers. Stay on top of these metrics to make sure you don’t.
Order Time Cycle (OCT)
The second important KPI that remembers to ensure that the battery is ordered cycle time. This metric monitors the time required by processing, picking, wrapped and sending the order. In short, it is the time that the company requires the completion of the order processing process since the customer plans to order when the product is delivered to the customer.
Cycle times of shorter ordering results in faster delivery, which will lead to higher customer satisfaction and repeating purchases. It has been shown that customers will return and are more likely to be loyal to your brand, if they believe their package will be delivered in time, each time. According to Forbes, “the probability of selling to the existing customer is up to fourteen times higher than the probability of selling to a new customer.” Why spend your marketing budget to find new potential customers when you can only re -hire the old ones who already trust your brand?
By chasing it at the time of shortening the order time, businesses can receive significant benefits that directly affect the customer’s satisfaction and loyalty. This will have them in return for more reasons than just your product.
Rendering rate
The reserves’ turnover shows how quickly the inventory is sold and compensation in a certain period. A high turnover rate can indicate effective inventory management and can help Aveide overcking or Stockouts.
An example of the stock turnover ratio is 4 to 6, which can be the ideal KPI for most food or electronic stores. This ratio would mean that your company will not be in stock, allowing you to meet your customer requirements, and in vain your 3PL will not hold an unnecessarily high volume of unsold products.
How to calculate the stock turnover ratio for your business? Depending on your industry, this ratio may change. The supply ratio is equal to the costs of the goods sold by an overall or average inventory. This shows how many times the inventory is turned or sold. This formula can help you with excessive inventory levels compared to the current dirty. Your 3PL can help you at any time.
Shipping costs per order
Calculation of average shipping costs on the order provides information on the effectiveness of your transport operations. Businesses can reduce shipping costs and increase the power of optimization of packaging, selection of carriers and transport methods.
If your product suffers from exceptional sale, but your shipping costs are uninterested, they can certainly affect your likelihood of success. In fact, it is even difficult for you to break and if it is not effective. Proactive transport costs is a necessity for Emmerce dealer, who is trying to deal with the main profit range.
This includes careful evaluation and optimization of various aspects of your transport process, such as the selection of the carrier, packaging effectors, transport methods and performance strategy.
Your 3PL will give you the best possible cost of working with all carriers. Prices may vary depending on the period, size package and dimensional weight. You want to be sure that you are watching these metrics to make sure 3pl offers you the best prices for your product.
The return is missing
Following the return level helps businesses to understand customer satisfaction and product quality. A high return rate may indicate product descriptions, sizing or overall customer experience. Monitoring metrics of return rate is essential for your business because it is customer satisfaction and product quality. By monitoring the product return on the product, businesses can assess where not their product was the expectation of the customer.
The high return speed serves as an important indicator that something may need to be added with the product or in your operations. For example, it may indicate the irregularities between the product descriptions and the actual features of the product, leading to a discontal customers -the item.
Similarly, the size of the inconsistencies or inconsistent product quality can contribute to a high return, indicating the need for better measures to control quality or clearer size information. The lower return indicates higher customer satisfaction and product quality, leading to increased customer loyalty and repeated purchases.
Electronic trade sellers can therefore improve customer satisfaction, build confidence with the audience and ultimatla to manage long -term business success and ultimatla to manage confidence with their audience and long -term business success. Quality can contribute to a high return, indicating the need for better measures to control quality or much more size information.
How to keep metrics
It can be difficult for food to monitor all these data per month. However, as soon as businesses identify as KPI and metrics, the next step is to use this data to manage improvements and optimize online sales.
Here are several strategies to maintain success, we have a monthly foundation:
- Continuous monitoring and analysis: Set a monthly check-in with these mere ones that you can monitor and analyze your selected metrics to identify trends, patterns and improvement areas.
- Benchmarking: Compare your metrics with industrial benchmarks or previous performance to assess your progress and identify growth opportunities. If you want to plan continuous improvement, you need a scale.
- Operations: implement your observations! Use the knowledge of your metrics to make operational modifications, such as optimizing the warehouse layout, working procedures of the order processing, or re -negotiation of the carrier contracts to reduce the shipping costs.
- Customer Enhancement Experience: Make sure your adjustments and observations increase customer support and experience. Take advantage of the order metrics, transport times and return metrics to increase your customer experience and build customer loyalty.
Businesses can save money, streamline operations and finally manage sales growth online use of metrics from detaching your operations. Partnership with a reliable 3PL provider and strategic analysis of KPI and metrics is essential to achieve the success of electronic trading in today’s Compy’s Landscape.
Maximization of online sales can be directly correctly with your 3PL. It requires a strategic approach to identify and analyze key metrics directly affecting the success of electronic trading. Effective use of these metrics can optimize their operations, reduce costs and provide exceptional experience with customers, which ultimately leads to online sales growth.