The latest headlines make for sober reading as the cost of living crisis in the UK continues to worsen as rising costs and inflation hit all at once. Thanks to a new higher energy price cap, the average household could be set to spend an extra £620 a year on gas and electricity, and this just adds to the list of rising costs which includes tax hikes, soaring petrol prices, and higher interest rates on mortgages. All in all, British households will reportedly be on average £2,320 worse off this year, and we know it’s a really worrying time for millions of people.
This is also a worrying time for businesses, which are being heavily impacted by rising costs, and we know many eBay sellers will be looking for advice on how to make it through this difficult time. With this in mind, here are some tips on changes that you can make to keep your business thriving, as well as some eBay offerings that can help.
What can small businesses do to remain profitable in the face of the cost of living crisis?
- Update your business plan to factor in cost rises - Although the current situation is concerning it’s crucial to not shy away from it, because putting your head in the sand and carrying on as usual will be detrimental to your business’ success. Invest time and effort looking at your current and changing costs so you can accurately work out your new profit margins, and update your business plan accordingly.
- Encourage customers to increase their basket size - We understand it can be tricky to raise prices and keep customers happy at the same time. Price rises in line with rising costs of raw materials are entirely reasonable, but if this is something you are keen to avoid, consider how you can encourage customers to spend more instead, such as by incentivising them to increase their basket size by bundling multiple items together or suggesting add ons.
- Purchase business essentials in bulk - It is really worthwhile to buy items that are essential to running your business in bulk, such as shipping supplies like boxes and tape. If you purchase these items in bulk from distributors you can get significant discounts, which will help you retain more money in your profit margins. Just ensure to factor the lump outgoing cost into your planning - for example if you plan to bulk-buy every six months, make sure you’re prepared for a large outgoing twice a year.
How can eBay help you?
- Capital for eBay Business Sellers - We know that running a business is a constant juggling act of cash input and outgoings and that, as part of this, sometimes extra funds are required to support your businesses needs. As a result, we have partnered with You Lend for them to provide you with a business capital offering. This, upon eligibility, can give you a quick access to funds at short notice, which can help provide some extra support in the current landscape. The funding can help your business in lots of different ways - such as sourcing more stock, hiring new staff, or investing in tech or equipment that will help your business run more efficiently. And it’s proven to positively impact seller growth. Businesses that have received funding through YouLend as part of the eBay Business Sellers program on average experienced 26% higher sales in the following six months compared to their peers.
- Multi-buy - When it comes to incentivising shoppers to increase their basket size, eBay’s Multi-buy function is a great tool to harness. With Multi-buy, you can offer buyers tiered discounts when they purchase numerous quantities of the same item. This can work particularly well for low to medium priced items that are bought frequently and/or in larger quantities, such as printer ink cartridges or socks.
- Terapeak Product Research - At a time when margins are getting tighter, knowing the market and how to best get cut through to make a quick sale can make a huge difference to businesses. Free to all sellers, Terapeak Product Research allows you to glean crucial insights into recent eBay supply, demand and pricing data to help you determine not only what to sell, but when and at what price point – so you can optimise listings and improve sales velocity. Go to the Research tab in Seller Hub to start analysing the market, competition and trends today.
- eBay Shops - An eBay Shop is a monthly subscription with eBay that gives you a range of benefits to help boost your business - such as reduced insertion fees, access to tools to manage your listings and business performance, and a personalised shopfront. You don’t have to have a Shop to sell as a business on eBay, but we really recommend it as a way to maximise your presence on the site, boost your marketing impact and help your business make a real splash.
We recognise this could be a difficult time for many sellers, and we're here to help. Please see the eBay academy page here for some further hints and tips on how to increase your sales.
If you have any tips or advice for sellers on how they can remain resilient and successful despite rising costs, comment below!
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