Globally, the concept of eCommerce is heavily dependent on the last mile delivery. The most important factor for building trust and ensuring customer happiness is ensuring a fast and safe delivery of the products to buyers.
Hence, merchants are constantly looking out for the most efficient logistics platforms to partner with in order to satisfy their customer base and maximise profits. But, good service comes with a significant cost.
Merchants are likely to incur exorbitant charges from shipping costs and insurance fees, leading to diminishing returns and eventually lower profit margins. In some cases, e-retailers pay as much as 20% of the price of an item as delivery charges.
Committed to developing ingenious solutions for e-commerce merchants in Africa, GIG Logistics (GIGL) is addressing these concerns by introducing an affordable subscription model called the GIGL Class Plan.
According to the leading logistics service provider, the class merchant plan has been designed to lift the cost burden off merchants and ensure that they are strategically positioned to optimise profits.
Founder of GIG Logistics, Chidi Ajaere explains the GIGL Class plan as further proof of the company’s dedication to creating an enabling environment for e-commerce businesses.
“Last mile delivery remains a great challenge for digital commerce merchants playing in the social/e-commerce space. The class subscription plan validates our commitment at GIGL to support SMEs and digital merchants with tools needed to scale.”Chidi Ajaere
I had the opportunity of checking out the platform and will take you through how it works:
How it works
Enter the 4-digit code sent to your mobile number to set up your account. Once your mobile number is verified, provide your personal details including your full name, email address, state and shipment address.
Also, fill in your business information – office address, industry (computing, gaming, fashion, etc), product category, registration status and choose if you would like to ship your products overseas.
When you’re through, click NEXT and select the GIGL Class Plan. You would have to make a one-time payment of N4,999 for the GIGL Class subscription.
This qualifies you for a 15% off all local shipping cost and 10% off all overseas shipping cost, free insurance cover on all shipments, no charges on COD (Cash on Delivery) and free bulk pick up for interstate deliveries.
That’s not all. Merchants will also get priority shipping, an e-commerce business growth kit, media visibility for business growth and a dedicated account officer.
Although the basic plan attracts no subscription fee, it only gives you 2% off shipping costs. But it is not as cost-effective as it seems.
For instance, if you sell 100 mobile phones costing N50,000 each at a delivery fee of N400 per phone. At 2% off (= N8), you would save N800 (N8 x 100) in delivery charges. However, applying a 20% discount (= N80) would save you N8,000 (N80 x 100).
Taking out the N5,000 subscription fee still leaves you with N3,000. This means that merchants get to save 10 times more on every Class plan delivery compared to the basic plan, after recouping their subscription fee.
Moreover, merchants save costs on bulk pickup for interstate deliveries and insurance cover.
This new offering by GIG Logistics is key to driving an efficient e-commerce process. This is especially for both key players in the space. It will make life easier for buyers by simplifying the delivery process as well conveniently connecting the consumer with the right seller.
The GIGL class plan not only solves delivery challenges. Its additional benefit of media exposure will help merchant increase brand awareness and gain credibility. This makes it truly holistic.
Innovations such as the GIGL Class will enable merchants to consistently fulfil consumer needs well above the regular possibilities ultimately redefine how eCommerce is done in this clime.
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