The popularity of e-commerce is reaching historical peaks. Thanks to Amazon's services, one can receive practically any product at their doorstep in less than 48 hours. However, in January 2024, Maison Orphée made the decision to convert its online boutique into a showcase website.
If you haven't read our first part on the subject, we invite you to do so: Why We Decided to Close Our Online Boutique
The Masters and Challenges of Online Sales
Do you know the ideal characteristics of a product intended for online selling? We have studied the question, and here is what we found:
- A low manufacturing cost.
- Small dimensions (ideally, a size compact enough to fit in an envelope), ideally consistent.
- Lightweight.
- Sturdy and less fragile.
Among the products that embody these characteristics, you'll find notably clothing and fashion accessories, certain electronic components, and some home accessories.
Now, let's look at the characteristics of Maison Orphée products:
- A relatively high manufacturing cost due to the quality of raw materials, manufacturing processes, and packaging.
- A wide variety of product sizes.
- A relatively heavy weight (a single 750 ml bottle weighs more than 2 pounds; the average package at Maison Orphée weighs an average of 12 pounds).
- Glass is a brittle and fragile material.
A losing cost structure
Online selling involves various expenses, and we have thoroughly explored what could be eliminated and streamlined. For instance, we switched our delivery service to benefit from the industry's best rates, chose eco-friendly yet cost-effective packaging, and even optimized our web marketing!
However, some expenses are not compressible, such as transaction fees charged by online stores and handling fees. Hand-packaging each bottle to prevent breakage during transport will never be a quick and easy task.
Finally, consumers are now accustomed to receiving certain benefits from their online transactions, such as free delivery and promotional discounts, without which they do not see the value in placing an order.
After cutting costs wherever possible and trying various alternative models – including Amazon – we concluded that this business model condemned the company to pay to provide access to its products through the online boutique and to lose money with each transaction, averaging $8 per order.
The Positive Aspects of This Change
This transition to a showcase website doesn't only have drawbacks! For us, it is certain that our financial outcomes will be more positive than before, which means a better investment in resources that will benefit you:
- To locate our oils and condiments, a new store locator has been implemented on our website. Destini makes it easy to find the product you're looking for in the store nearest to the postal code you enter.
- We offer monthly discount coupons on a selection of products. Newsletter subscribers receive the information in advance, so it's a great idea to subscribe!
In addition to supporting us by purchasing an oil or condiment, you also encourage your favourite retailer and demonstrate an interest in quality products.
We remain attentive to our customers to build together a world where eating healthily and deliciously is possible for everyone while taking care of the businesses and workers who pursue this mission. Do not hesitate to reach out if you have any questions!