Deliver your Product | Graeme Lazarus

The subject of today is packaging your product in the best way. And there's a lot of complexity about it. And a lot of what happens around packaging will have an effect on the cost and ultimately deal with your profit margin. So to get into it, we talk about b2c, which is to the consumer business to consumer, there's a lot of complexities about the delivery from acceptance to communication, to information, data transfer. And then talking to the customer and making sure that we continue to deliver on your promise to your customer. So the shipping costs, and this comes down to the packaging of the product.

And there's been a lot of surveys, but over 75% of shoppers expect the couriers, the transporters to have affordable fast deliveries main items, but really the service that you are selling to your customer, so you're going promise, a two day service or three day service, you won't have the product on in your in your business, and suddenly you will end up having to do same day delivery to all these places, which could incur more risk. Then you have the actual weight of the parcel. And the real item that we want to talk about is the volumetric charge, then volumetric kilogram of a parcel, and generally the transporter sells space. So they'll take the greater of the actual weight, or the volumetric weight of the parcel. And, and I think it becomes complex, because people think it's just quite easy, let's just, you know, weigh a box and just send it but it doesn't really work like that. A lot of transport to sell space in a truck. And we need space, you got to get another truck. And that becomes the complexity of making sure that we can manage our supply chain in achieving our output.

So again, I think this is a critical slide that that one should bear in mind and I think that and articulated earlier in the meeting is that depending on your basket price of your sale of what you're selling online, you really need to figure out that the cost of distribution has a huge bearing on your margins. So if you've got a high value item, like a mobile phone or a computer, which is small, you could have margins of point seven to 1.5%. But if you've got a low value item, it could arrange seriously, seriously hard from six to 12 or a lot more. So I think what we need to do or what you really need to do is make sure that whatever you decide to sell online is niche, in my opinion, is something that the customer really wants, and not that you'll take it at any price but I don't think that he'll be begrudged on the fact that you are charging for distribution costs. So I think it's really critical of this slide and I think that you really need to deal with this very carefully.

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