Reduce Cost & Waste

An investment in good product content can reduce a number of costs

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Marketing

With a higher conversion rate from better product content, less marketing spend is required to achieve the same sales, or more sales can be realised from the same marketing spend. But of course, the money saved should be invested in even better product content and drive the conversion rate to an even higher sustained level.

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Returns

If customers receive the product they thought they were getting they are a lot less likely to return it. Product content gives customers the information that helps them make a “right first-time” purchase and so reduce returns and all the costs associated with it. Given cost of returns is one of the largest controllable costs of an online retail business (5-10% of sales when all costs are accounted for), this can have a major impact to the overall P&L.

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Fulfillment costs

Knowing the size of a product before purchase has two major benefits. Firstly, the right amount can be charged to customers for shipping, not too much (which reduces conversion rate), and not too little (which can make an order unprofitable). Secondly, cartonisation can be performed more accurately within the warehouse management system, meaning that shipping costs are minimised.

Good product content not only drives sales, but also has a major impact on the cost lines.