8 Types Of Ecommerce Marketing Waste To Crush

Lots of people are looking to reduce costs at the moment off the back of reduced demand. The lean manufacturing book the Toyota way highlights some kinds of waste we might want to consider at the moment in looking for efficiencies.

Please have a look at this list and comment as to what else should we consider.

1. Overproduction.

Producing items for which there are no orders, which generates such wastes as over staffing and storage and transportation costs because of excess inventory.

• Product lines that are purchased but don’t sell well.
• Producing content for which there is no traffic or engagement.

2. Waiting (time on hand).

Workers merely serving to watch an automated machine or having to stand around waiting for the next processing step, tool, supply, part, etc., or just plain having no work because of stock outs, lot processing delays, equipment downtime, and capacity bottlenecks.

• Slow inventory turns into last seasons stock that has to be cleared.
• One and done - people that sign up and never convert to a 1 time order, people who buy once and never again.

3. Unnecessary transport or conveyance.

Carrying work in process (WIP) long distances, creating inefficient transport, or moving materials, parts, or finished goods into or out of storage or between processes.

• Importing inventory from sources further away than local sources or dispatching via unnecessary country when could go direct from suppliers.
• Wasted ad impressions that are to the wrong audience or a high cost audience that doesn’t deliver ROAS.

4. Over processing or incorrect processing.

Taking unneeded steps to process the parts. Inefficiently processing due to poor tool and product design, causing unnecessary motion and producing defects. Waste is generated when providing higher-quality products than is necessary.

• Carrying too many lines. Overextending number of products carried in a collection / category.
• Promoting categories that don’t have required ROAS.
• Advertising products with low conversion rates.
• Not advertising products with high conversion rates.

5. Excess inventory.

Excess raw material, WIP, or finished goods causing longer lead times, obsolescence, damaged goods, transportation and storage costs, and delay. Also, extra inventory hides problems such as production imbalances, late deliveries from suppliers, defects, equipment downtime, and long setup times.

• Buying too much volume of product in categories that has to be cleared in end of season sales.

6. Unnecessary movement.

Any wasted motion employees have to perform during the course of their work, such as looking for, reaching for, or stacking parts, tools, etc. Also, walking is waste.

• Working on multiple marketing projects that are not on the critical path. eg if conversion or retention are the goal then working on new traffic projects may be a waste.

7. Defects.

Production of defective parts or correction. Repair or rework, scrap, replacement production, and inspection mean wasteful handling, time, and effort.

• Returns due to wrong size, faulty goods, any reason for returns.
• Marketing that creates negative customer experiences.

8. Unused employee creativity.

Losing time, ideas, skills, improvements, and learning opportunities by not engaging or listening to your employees.

• Not working together as marketing team &/or working on the wrong priorities too slowly.