Your subscription is personalized, you have control over everything and there are no hidden costs. At Powerlab we work with a one-off initial contribution, a choice of 3 monthly subscriptions, and a 15% commission on sales. The next step is to decide on a method of remuneration. Most agencies take a commission on sales. But it is absolutely necessary to be balanced. But also the cost price of the product, the percentage of the delegator, and the marketing costs, there would be nothing left. Leather goods or lingerie may well be suitable but beware of entry-level cosmetics, for example.īetween the incompressible costs: logistics and delivery.
Those with an average shopping basket of fewer than 50 euros. It also means that some brand segments are simply not interesting. The delegator must therefore assess the brand’s potential and his own costs extremely well before accepting a new brand. Assessing the potential of the brandĪs a result, not all brands are interesting for a delegator. Which are mainly human resources costs, can be broken down as follows: marketing costs (daily management of the site, CRM, traffic, Magento back-office, etc.) technological costs (catalog, photos, changes to be made to the site, etc., and therefore developers) graphic costs (banners, animations, newsletters, homepages, etc.), a dedicated e-store manager and finally logistical costs (warehousing, picking, dispatch). At Powerlab, for example, the management costs of a branded merchant site. The average amount of orders must be over 50 euros in order to amortize a certain number of fixed costs. The brand must also have a real digital strategy so that e-commerce does not become the fifth wheel.įurthermore, to be profitable, an e-commerce delegation activity must be able to rely on a sufficient average shopping basket. This is something we have observed after years as a major player in e-commerce delegation in Luxembourg and Europe. The brand must absolutely have a good retail reputation for its e-commerce site to have a chance of achieving a real turnover. It is therefore logical that the e-commerce delegation, which adds an intermediary between the brand and the consumer, needs to be carried out to the letter, otherwise it will be forever out of balance. The difficulty of making money in e-commerce is now a commonly held opinion. What are the strategies of the main companies handling the online sales activity of brands? What are the challenges of the sector and the keys to success? Here is our analysis. Still relatively little practiced by brands in Europe, the delegation of its e-commerce activity to a specialized service provider is nevertheless a solution widely adopted internationally.
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