Strategies to increase your Average Order Value in 2024

New customers aren’t always automatically equal to more revenue. In fact, they tend to have a high acquisition cost and their lifetime value is not the same, meaning they might just make a single purchase and never come back again. What does this imply? Put simple, focusing on existing customers to increase their value can be more profitable.

Why you should aim for a higher Average Order Value?

?It doesn’t impact marketing and sales costs

Average order value is important because it increases revenue without impacting marketing and sales costs by focusing on the value of existing customers.

It increases sales and turnover rate

Raising your average order value means you are selling more inventory. Your customers are buying more products, generating a higher revenue. However, remember to set an adequate pricing strategy: a higher revenue doesn’t always equal higher profits!

Continue reading: https://elogy.io/en/strategies-to-increase-your-average-order-value-in-2024/

What is intralogistics and why is it important for your business?

Third-party logistics providers, warehouses, or distribution hubs require robust logistical strategies for daily order fulfillment, especially when dealing with large scale operations.

Each aspect—ranging from receiving goods at the warehouse, processing orders, to the last-mile delivery—must be extremely coordinated to avoid delays, inventory loss or unnecessary costs.

Intralogistics is precisely the sophisticated orchestration of these operations within a facility.

What is the difference between intralogistics and logistics??

Intralogistics and logistics, although related, cover different aspects and purposes within the management of the supply chain. Intralogistics refers to the process of managing materials or goods within a single warehouse or distribution centre. Its focus is on optimising processes like picking, packing, delivery etc., using technology like WMS Systems. Logistics, on the other hand, is the broader process of managing the flow of goods from suppliers to end customers.

A Warehouse Management System (WMS) becomes instrumental in coordinating the flow of products and information across the supply chain, as it allows tracking of goods from receiving to delivery to final customers. This? system is an essential feature for ecommerce businesses and handles many functions in warehouse management operations.

The primary warehouse management operations in intralogistics are:

• Reception of goods: The process begins with the reception and registration of all goods that arrive, while checking item type, quantity, quality, and timing.
• Storage: Items are safely stored and systematically organized to streamline picking operations.
• Picking: This step involves selecting items related to customer orders.
• Packing: Items are prepared for dispatch, meaning they are packed safely for transit and included in packing slips.
• Inventory tracking: This process involves constant tracking and management of inventory levels, knowing exactly where and how much stock is present and at which storage location.
• Shipping: Orders are now dispatched. They must have the right labels and documentation and must be loaded onto the right vehicle to be punctually delivered to the customer.
• Analytics and reporting: One of the most important features of a WMS is to generate detailed reports on warehouse operations and inventory management, highlighting metrics related to order fulfillment, efficiency of operations, punctuality of deliveries, as well as operational expenses.

Benefits of advanced intralogistics solutions with eLogy

Intralogistics and technology are closely bound. With eLogy you can master the daily complexities of warehousing and fulfillment by integrating advanced software with physical means. This leads to better resource utilization, resulting in significant cost reductions and enhanced operational efficiency. Thanks to the use of advanced Warehouse Management Systems (WMS), automation technologies, and sophisticated analytics tools businesses can streamline processes, enhance decision-making with data-driven insights, and automate their daily fulfillment tasks.

Continue reading: https://elogy.io/en/what-is-intralogistics-and-why-is-it-important-for-your-business/

LATEST NEWS

Here's what you might have missed last week:

• On-Time Shipping: Why is it important for your business? (2024)
• Inventory Turnover Rate: Why is it important for your business (2024)

Follow us on LinkedIn or sign up to our weekly newsletter for precious insights and strategies to improve your ecommerce operations!