Money Saved Using Skubana

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The Analytics module's landing page presents important information about your account.

One of the other reports on the Analytics landing page is the Money Saved Using Skubana report, which details the amount that Skubana has saved for you since you started using it, broken down into four categories.

By automating your order fulfillment and purchasing, as well as preventing you from overselling, Skubana saves the money you would have to spend on hiring an actual employee to do all the tasks Skubana automates for your business. The following is a breakdown of the money-saving categories and how they are calculated:

1. Orderbot Automation

Orderbots can be very complex in terms of how they filter your orders by the given criteria, and the inputs that need to be applied to those orders. Even a highly effective employee could not apply more than 17 Orderbots of average complexity under one minute (that's one Orderbot in under four seconds!). Trust us, we tried. So given a fair labor rate of $20/hour that you would pay to a trained employee, applying a single Orderbot would cost you around 2 cents. And those cents quickly add up the more Orderbots you have.

2. Fulfillment Automation

If you utilize Skubana's third-party logistics (3PL), dropship, or multi-channel fulfillment (MCF) automation, you take advantage of time-saving processes that route your orders to desired fulfillment centers, and receive tracking information once those orders are fulfilled. If done manually, this process can be very time consuming because it entails a lot of data transformation and validation. Using a fair labor rate of $20/hour, we conservatively estimate it would take 12 cents to transform, validate, and send order info, as well as receive shipment tracking information for each order communicated between you and your external fulfillment sources.

3. Overselling Prevention

Skubana constantly synchronizes your inventory levels across all sales channels and deactivates relevant listings when products run out of stock. While helping ensure a seller does not get suspended from a marketplace (e.g. Amazon) due to overselling is almost priceless, measuring the amount of money it would cost you to fulfill orders for which you do not have inventory is much easier. On the day a product's in-stock quantity is zeroed out on a sales channel, Skubana takes your vendor cost for that product and multiplies it by the sales velocity for that day. This is the minimum amount it would cost you to obtain more stock, although in most cases it would cost you extra when attempting to get it at such short notice.

4. Purchase Order Automation

The crown jewel of Skubana's automation is auto-generated purchase orders. Skubana constantly monitors your sales velocity for each and every SKU, and auto-magically creates or updates a purchase order for every product that needs to be re-ordered from your vendor. While not all sellers have the same complexity when it comes to purchasing, there are common denominators for every P.O. that needs to be created, including how much and when to order. Calculating the movement of a product increases in complexity as more sales channels and warehouses are added to the equation. More importantly, the cost of making mistakes (under-purchasing or overstocking) can have a huge and, often, crippling effect on a seller's business.

We conservatively estimate it would take an average-sized seller about 30 minutes to fully calculate the exact reorder amount for a performing SKU, so with a fair labor rate of $20/hour, that would come out to $10 for every P.O. item. Of course, there is no price one can put on the piece of mind every Skubana seller enjoys knowing that every P.O. auto-generated by the system is precise and, more importantly, up-to-date with your very latest sales velocity.

The Opportunities Found by Skubana report is one of the other reports on the Analytics landing page. You can find more details about that report here.

TIP: When using Skubana, click the ? icon at the top-right of the report to display this Help item online.

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