8. Help others — individually and as an organization. Although Shoebuy.com was growing and profitable, and its employees had job security, Savitz realized that many others weren't as fortunate. The retailer donated its time and money to volunteer work and organizations such as Make-A-Wish and Big Brothers Big Sisters. Employees’ charitable donations were matched dollar for dollar by Shoebuy.com. Those that donated were entered into raffles to win prizes such as paid time off and gift certificates, among other things. Senior management has also donated its time to industry boards and trade shows.
Here are some other highlights/tips from Savitz's presentation:
- 95 percent of Shoebuy.com's products are drop-shipped;
- Shoebuy.com levies chargebacks on suppliers for late or wrong shipments not as a source of revenue but to help prevent them in the future;
- Shoebuy.com has offered free shipping since it launched in 2000;
- even with free shipping, the company averages a 25 percent profit margin per customer;
- a retailer's mobile site experience must be equal to or better than its e-commerce site before the technology should be rolled out to consumers, Savitz advised; and
- after cost of goods, shipping is Shoebuy.com's biggest line-item expense.