“White Label” E-Commerce
"White Label" means you have an on-line store in your website when in actual fact (and this is made plain to customers in the final step of the payment process) the online shopping on your site is provided by us through our investor and partner's licensed internet pharmacy warehouse. We maintain the product database, manage stock, packaging, postage, customer service, order tracking, refunds, distance selling laws etc
All the customer data and their sales data is yours.
You receive 50% of the profit on the sales (ex VAT) from your site and you retain ownership of all your registered customers’ sales data. The more you sell higher the profit share rises in your favour (ie 55%, 60% etc).
We have the right to use sales data to provide a competitve and effective service for you.
We retain the right to change this percentage but you also have the right to leave whenever you wish or to have the service switched off and to replace it with your own operation and you will have all your existing customers and their sales data with which to do so.
Having this facility will not cannabalise sales in your store. For most independent pharmacists, retail sales make up a small part of their business. The customers who regularly visit your store will probably continue to do so and people will still need to make acute purchases. The rest of your customers are making their regular retail purchases from supermarkets, high street chemists or increasingly online. Online, people are even more price sensitive and it is very easy to find who has the best price. As well as Chemist Direct and other agressive online pharmacies, Amazon now sells an ever growing selection directly. Discounting is brutal and there is no way the vast majority of independent pharmacies can buy cheaply enough to compete. Our ecommerce solution enables you to win back this business through offering the best prices and a huge range.
What Are the Benefits?
- There is zero investment or start-up effort involved for you.
- There is no need for staff training or to worry about fulfillment issues.
- You will always have an extensive range - probably more than you could stock economically in your stor
- The prices will always be amongst the internet’s best in the UK. Price is very important to on-line shoppers and your on-line pricing will enable you to compete better with supermarkets and high street chains. As the turnover generated by our growing network grows, we we will be able to get better and better deals from the manufacturers and the value of your 50% profit share will rise.
- You will be able to provide a competitive offering to those local customers who do very little non prescription business in your store apart from acute purchases.
- You keep all your registered customer data - you can give us permission to send targeted offers on your behalf or you can do this yourself.
- Zero risk. Allows you to concentrate on local customer and in-store marketing.
- If you find at any time you are starting to effect your in-store sales you can turn it off immediately.
- You can start your own store at any time. Once you have built up your customer sales database you will have a proper idea of the potential value of existing customers and rate of acquisition of new ones so you can decide to invest in building your own operation should your on-line turnover justify the investment. We will be able help you there too. Alternatively, we can filter out particular items such as Pmeds, if you want to fulfill those yourself and leave everything else in the white label store. We are upgrading the service over the next few months to enable you to choose items in your store that you wish to set your own price on and fulfill yourself. Also, you will be able to upload products not in our database that you will display in your version of the store.
The cost of setting and running an e-commerce operation is considerable - both in cash and resources; in the region of £15,000-20,000 + the ongoing costs of maintaining an accurate up to date product database. Margins for on-line retail sales are much slimmer as the market is very price sensitive. If you cannot offer comparable prices to Chemist Direct, Pharmacy2u, Oneclick, Express Chemist, Tesco, Superdrug, Asda etc you will not sell very much. Given the margins, you would have to be generating volumes of £15-25k per month to pay back the cost of investment alongside running costs within the first couple of years. To achieve that sort of tunrover, you will probably have to invest in internet marketing which will add further cost, pushing your breakeven point even further. It will be much more profitable for you to concentrate on marketing to your own existing customers initially and in your local area. We will also be offering internet marketing servcies you would not normally be able to access without committing to budgets in excess of £100k per year for those of you that want to invest in your e-commerce. When you have built up a good customer base and know the repeat purchase rate and annual value of a repeat customer, then you can make a much better informed economic decision on whether it is worth setting up your own e-commerce operation.