2 Important Hacks For Increasing Proﬁt For eCommerce
I know you’re thinking my accountant doesn’t increase profit.
They’re totally REACTIVE.
And I know what you mean.
Most CPA’s fall into this trap.
The truth is most accountants are just a cost.
The cost of compliance with taxes.
The cost of getting the books done.
But when you work with me.
It’s not just about compliance.
It is about increasing profits, improving cash flows and effectively managing your inventory.
I included two important hacks for increasing your profits below.
If you’re ready to take the next step, book your 1-on-1 meeting with me
Track and Benchmark Gross Profit Margins by Product, Sales Channels and Customers/Customer Groups
Gross margin is one of the key metrics for e-Commerce businesses. Gross margin is a metric that measures your profits as a percentage of revenue.
Tracking your gross margin by products, sales channels and customers is the first step.
After you have this data you need to compare yourself to your competitors.
Gross margin percentages are generally between 30% to 40% for successful e-commerce businesses although this rate varies significantly by annual revenue, industry and product categories.
To improve gross margins for your e-commerce store, you can either increase your revenue per product or decrease the cost of each sale.
Track and Benchmark Average Order Value by Product, Sales Channels and Customers/Customer Groups
Average Order Value and Gross Margin Rate determines your average margin per order.
This shows you how much you can afford to spend on new customers to ensure that their first order is profitable.
Average order values significantly varies by annual revenue, industry and product categories.
Average Order Value can be improved with a variety of methods including cross-selling, up-selling, free shipping with minimum purchase offers, volume discounts, donation incentives, money-back guarantees or coupons.
Whether it’s improving your gross margin through pricing strategies based on key performance indicators.
Or improving your cash flow and inventory management with effective forecasting.
Or customizing your accounting process to effectively track income, expenses and key performance indicators on a per product, customer or sales channel basis.
We’re here to partner with you to take your company to the next level!
If you’re ready to take the next step, book your 1-on-1 meeting with me TODAY!