The Charismatic Charlie Wade
Chapter 5100
Hannah took advantage of this and unexpectedly lowered the return rate to less than 5%!
This was recognized by the brands.
Although Hannah’s number of fans was not as high as those of top streamers, her fan conversion rate was high and the order transaction rate was also high, which resulted in brands increasing her commission ratio.
Live streaming had become a profitable business.
For example, the five towels that Hannah sold yesterday, the production cost in the southern factory was about 15 yuan.
Due to the huge order volume, the cost of logistics was about two or three yuan and the cost of storage and packaging was added up.
The total cost was only twenty yuan, but the live broadcast sold five items for ninety-nine yuan and the gross profit rate was extremely high.
However, brands also had their own weaknesses. What they were most afraid of was the high return rate.
In order to protect the interests of consumers, the platform gave consumers the right to return the product within seven days without any reason.
Each time a product was shipped out, the expenses for labor and transportation amount to 5 yuan.
However, if the customer returned the product, the revenue from the sale was reduced to only one cent. This resulted in a net loss of 5 yuan.
Additionally, returned products often had their packaging damaged, requiring additional effort and cost to repackage the item for resale.
return rate was high, even if the gross profit margin was initially high, the actual profit margin for the brand was not
the return rate was
leaking
were to sell expensive skincare products with a higher commission, a customer’s dissatisfaction with the product would result in a higher
maximum unit price per customer for live broadcast
low, she minimized the likelihood
the amount they were willing to spend for
shower cap made by plastic wraps for 29 yuan, five towels for
might not be great, they were still useful to her customers and unlikely to be returned. Even though the garbage bags might not be of high quality, they could still be used
wraps might not be perfect for keeping food fresh, but they could still serve a purpose of covering
towels might not be suitable for washing the face, but they
often viewed their purchase
low value of these items, the effort and cost associated with returning them was often deemed not
pickup, repackaging the item and paying for shipping
of shipping returned items could also be a deterrent
shipping through a major shipping company might only be a few yuan, while individual
customers might find it more cost-effective to keep the item rather than went through the hassle
an
her low return rate as leverage to
if a brand offered a 20 yuan commission for each sale through another live streamer, Hannah might be able to negotiate a commission of 30 yuan per sale because of her lower
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