Local startup Fresh In A Box which has been in operation for just over a year now. I have referenced this startup quite a lot due to its enterprising and tech-savvy manner of doing business. Their business model relies heavily on having an efficient delivery system – it is a key element of their unique selling point. Factoring in the fuel shortages that tend to recur locally you can imagine how problematic that can be. It is in light of this that Fresh In A Box has since decided to introduce delivery fees.
Fresh In A Box’s Communiqué On Social Media
“Happy 2020 everyone! As we kick-off the New Year, we have spent the last few days analysing our wounds and scars from 2019. Needless to say; it was a brutal year, but we thank God we survived. One of the fresher wounds we had to look at and try to deal with was the serious issue we have had with logistics and your deliveries.
December was an absolute nightmare when it came to fuel availability and the time spent trying to make sure we could cover the huge combined distances with the pretty large fleet we needed to fulfil orders on time. Daily your important deliveries were being hurt by the urgent and desperate need to procure fuel. We often ended up having to turn to more expensive sources (meaning real US dollars), just to get your deliveries on the road. This quickly made our boxes not profitable.”
From that communiqué, it is evident that fuel procurement became quite an issue for them, particularly in December. This must have also been exacerbated by the incidence of a spike in orders due to the festive season. The issue of having to sometimes procure fuel using US dollars was a huge disadvantage. This obviously stems from the fact that most local customers pay using RTGS. Thus buying fuel in US dollars was and is in no way viable for the business.
The Delivery Fees Options
In order to curb the challenges emanating from fuel procurement, they have decided to introduce delivery fees. The delivery fees package is 3-tier i.e. you can choose from 3 options. One, if you want a guaranteed delivery the next day you pay US$5 (or the RTGS equivalent). Two, if you want a guaranteed delivery after 2 days you pay US$2 (or the RTGS equivalent). Three, if you want free delivery then you will have to wait for as long as 3 days. Note that deliveries are on any day spanning from Monday to Friday.
A Brief Commentary
Fresh In A Box has always been consistent in their service delivery and I am sure their customers can understand why this development is necessary. The other thing they have always done well and still continue to do well is regular engagement with the public. As a business, it is important to stay in continual and active engagement with your customers and prospective customers. This is one of the factors that have helped the business grow in just one year. One of the lessons to draw from the Fresh In A Box business model is the robustness of e-commerce.
As they aptly highlighted, 2019 was a brutal year, especially for most businesses. Regardless their business stayed afloat and this comes from the fact that the business leverages on the internet and social media. Local businesses must seriously consider incorporating the internet and social media for their business operations. This tends to reduce your business overheads thus making your business financially sound. Plus you get to easily reach countless existing and prospective customers online. The other thing to take away is about tapping into the diaspora. If there is a way for your business to tap into the diaspora market please do. This contributes immensely to getting revenue in the much needed foreign currency.
So that is the latest development pertaining to Fresh In A Box. It is quite commendable how at every point they encounter a speed bump they always figure out a way forward. I believe they are setting a trend and an example for local e-commerce – local businesses have a lot to learn from Fresh In A Box.
