A healthy online Home business

What should an optimised commercial and operational model look like? A combination of leading examples that holistically improves the online channel per product segment like after sales services, motivating click-and-collect, segmentation of the assortment, and hybrid allocation could eventually result in a healthy online Home business.

Profitablity solutions

High potential solution

Increase profitability by offering (after sales) services e.g. full assembly or installation service; thereby focusing on project based instead of product based selling and increasing overall basket value and profit

High potential solution

Making sure consumers pay a fair share of the delivery operation increases profitability, dependent on pricing strategy

High potential solution

Incentivize consumers to use click and collect options instead of home delivery increases profitability with 2- 4% per order for smaller items and 10-15% for large items

High potential solution

Different online fulfilment & online to offline strategies per product segment and leveraging the benefits per supply chain segment across segments optimizes overall profitability

High potential solution

Diversify the ship-from location (CDC, RDC, store) based on proximity to the consumer and market density creates an optimal balance between picking and last mile costs

Other solution

Picking click-and-collect orders from store stock when the full order is available significantly decreases store replenishment costs. The inefficiencies created in the picking operation can be partly offset by using store employee idle time

Other solution

Making sure consumers pay a fair share of the return delivery operation increases profitability of returned orders by approximately 13%.

Other solution

Determining if it is more beneficial to split or combine freight and parcel handling and shipments to maximize customer convenience and minimize costs

Other solution

A variety of traditional (bikes, vans) or future (droids, drones, autonomous vehicles) can decrease last mile costs