FOODO has been up and running for over a year now. It has been a great year for the site as it has grown massively and now we are getting to the point where the site is crashing due to the amount of traffic we are receiving. That I guess is good for a webmaster as it means the site is becoming increasingly popular, but bad from a sales point of view in that no one can buy anything for a period of time!
The biggest challenge FOODO is facing at the moment is an issue that many online Australian business face when dealing with third party shipping – cost.
We aren’t yet big enough to have our own logistics so we have to rely on Australia Post at the moment. This is becoming more and more of an issue for us as we grow. We have more orders being processed and therefore more items being shipped which just means we face more problems with shipping.
Broken items, late delivery, items being lost. It is a massive problem at the moment. To add to all of that it is also expensive. Depending on what is purchased shipping can sometimes be more than the item itself.
Our business model also does not help. One customer might buy product from 3 different producers, therefore it is being shipped from 3 different locations, which in turn means shipping is going to be charged 3 times.
In a lot of cases when buying online locally in Australia, the item itself might be cheaper than in store however the shipping is expensive which negates the saving therefore it makes more sense to just go out and buy it in a shop.
Retailers are complaining that Australian’s aren’t buying locally at the moment as it is cheaper to buy the same product from overseas. The products are cheaper, as in most cases the shipping is too. If they want us to buy local, apart from the big retailers making their prices more competitive (which is a separate issues in itself), shipping and courier companies have to make it worthwhile and cost effective for us who want to buy local and support Australian business.
Who is going to pay $11.00 to get a $5 bottle of Olive Oil shipped? Exactly….