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Huge SKU counts, small basket sizes and postage that outweighs the order.
Craft supplies mean enormous ranges of small, cheap items. Hundreds of colours, sizes and variants, each selling a few units a month. That is a lot of individual lines to manage and a lot of cash spread very thin across stock that individually turns slowly.
Basket size is the central problem. Someone buying three reels of thread has a very small order, and postage on that order is a large share of it. Getting the average order value up through bundles or minimum spends is usually worth more than any amount of extra traffic.
Customers are loyal and knowledgeable. They come back regularly for consumables, which makes repeat rate strong if you keep the range they need in stock. Running out of a specific colour is a genuine reason to lose someone.
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