1. Reduce Operating Costs of Your Online Business and
Increase Profits
Online businesses are increasing at a rate not seen before in any other market. There are
hundreds of thousands of e-commerce sites in operation. To have a successful online business
you need to be competitive and keeping a tight rein on your operating costs is critical.
An online store has the monthly cost of web hosting. Different web hosting companies offer
different services so do your homework and find one that meets the needs of your business.
Many also offer significant savings when you pay for your hosting by the year. It’s a great way
to save.
The cost of purchasing products for your online business is usually one of your larger expenses.
Cost of goods can be reduced significantly by taking some time to shop around for the best
product pricing, and the best shipping rates. Many wholesalers offer discounts based on the
quantity. Take advantage of these savings because they can be significant. The longer you buy
from one supplier the more likely you’ll be able to negotiate a better price. Loyalty is
important.
A merchant account is a main expense to an online business. There are a number of different
merchant accounts to choose from. The cost per month and the percentage they take varies.
Some are based on dollars processed, while others are straight across the board. It’s worth
investing some time here to find the best merchant account provider for the type of business
you operate.
Website maintenance can add up to thousands of dollars a year especially if you need changes
made to the site daily. Adding product, reworking descriptions, and changing prices isn’t as
© 2011 Apptivo Inc. All rights reserved.

2. hard as you might think, once the site itself is built. You should learn to take care of this
yourself.
If you ship products to customers check out all the shipping options available to you. There are
different services offered by the post office and many courier companies will offer you huge
discounts if you sign on with them and agree to send all your freight using their company.
When used for items you ship and items you receive you will save significantly.
Running an online business is no different than running a traditional business. There are costs
associated with operating that business and the lower you can keep those costs the more you
can increase your profit. We’ve touched on only a few of the main areas where operating costs
can be reduced but keep your eyes open because there are many others.
© 2011 Apptivo Inc. All rights reserved.