Ecommerce Finance Podcast

Episodi del podcast

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  E11: The State of Ecommerce M&A in 2025

  E11: The State of Ecommerce M&A in 2025

  E11

  26 Marzo, 2025

  45:10

  In this episode of the Ecommerce Finance Podcast, host Stephen Brown interviews Josh Robbins from the Premara Group to discuss the current state of ecommerce mergers and acquisitions. They explore Josh's unique background in ecommerce, the evolution of M&A in the sector, and the factors that make consumer products businesses attractive to investors. The conversation delves into the challenges faced in M&A deals, the importance of understanding profitability and valuation, and the key factors that affect deal success. Josh emphasizes the need for preparation when selling a business and the significance of financial clarity, supply chain management, and effective marketing strategies. Takeaways The M&A market for ecommerce has seen significant fluctuations, with a recent slowdown in activity due to economic factors. Consumer products businesses that demonstrate revenue growth and profitability are more attractive to investors. Understanding unit economics and cost of goods sold is crucial for business owners. Key man risk and reliance on a single sales channel can deter potential buyers. Preparation is essential for business owners looking to sell, including understanding financials and market positioning. Engaging trusted advisors can help navigate the complexities of selling a business. Diversification in supply chain and sales channels reduces perceived risk for buyers. Effective marketing strategies are vital for customer acquisition and business growth. Selling a business is a team effort, and having the right support can lead to better outcomes. Chapters 00:00 Introduction to Ecommerce M&A 02:39 Josh Robbins' Ecommerce Journey 05:40 The Evolution of M&A in Ecommerce 08:45 Current Trends in Consumer Products 11:49 Understanding Profitability and Valuation 14:30 Challenges in M&A Transactions 17:24 Key Factors for Successful Deals 22:06 Understanding Cost of Goods Sold 27:34 Supply Chain and Sales Channel Diversification 38:59 Preparing to Sell Your Business Work With Us If you are considering an ecommerce exit and need help with your ecommerce accounting, reach out to us at LedgerGurus. We are an ecommerce-specialized accounting firm, and we can handle all your numbers so you can focus on growing your business and preparing to get the best possible selling price for your business.

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  E10: How to Choose the Right IMS for Your Ecommerce Business

  E10: How to Choose the Right IMS for Your Ecommerce Business

  E10

  5 Marzo, 2025

  51:59

  In this episode of the Ecommerce Finance Podcast, Stephen Brown and Scott Scharf discuss the critical aspects of selecting and implementing an inventory management system for ecommerce businesses. They explore the importance of inventory management as a key asset, the methodology for selecting the right system, and the expectations for implementation timelines. The conversation also covers when to consider an inventory management system, the differences between ERPs and inventory management systems, and the necessity of documenting processes for successful implementation. Takeaways Inventory is often the biggest asset in consumer product businesses. Many entrepreneurs struggle with inventory management due to reliance on spreadsheets. Selecting an inventory management system requires a clear understanding of business needs. Demos should focus on specific processes relevant to the business. Implementation of inventory systems often requires external expertise. Budgeting for implementation costs is crucial for success. Hiring an operations manager can significantly improve system adoption. Pain points in inventory management often indicate the need for a new system. Trusting but verifying your 3PL is essential for accurate inventory tracking. Documenting processes ensures consistency and efficiency in operations. Sound Bites "Trust but verify your 3PL." "Hire someone to help you with this." Chapters 00:00 Introduction to Inventory Management Systems 03:16 Challenges in Inventory Management 06:25 The Importance of Comprehensive Processes 09:23 Selecting the Right Inventory Management System 12:37 Methodology for Choosing an Inventory System 18:27 Implementation Expectations and Budgeting 25:56 Implementation Timeline and Feedback Mechanisms 31:52 The Role of Operations Management in E-commerce 37:15 Inventory Management Systems vs. 3PLs 39:01 Evaluating ERP Systems for E-commerce 47:41 Documenting Processes for Successful Implementation Guest Info Scott Scharf Scott@scharftech.com https://www.linkedin.com/in/scottscharfcc/ Work with Us Struggling to make sense of your ecommerce financials? Let LedgerGurus handle your accounting so you can focus on growth. Take control of your inventory accounting and unlock real profitability with our inventory consulting services.

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  E9: Why Inventory Accounting is So Hard (but SO IMPORTANT) for Ecommerce Brands

  E9: Why Inventory Accounting is So Hard (but SO IMPORTANT) for Ecommerce Brands

  E09

  26 Febbraio, 2025

  49:22

  In this episode of the Ecommerce Finance Podcast, Stephen Brown and Brittany Brown delve into the complexities of inventory accounting and its critical role in financial management for ecommerce businesses. They discuss the challenges of accurately tracking inventory, the importance of accrual accounting, and the implications of Cost of Goods Sold on financial statements. The conversation highlights the necessity of operational maturity, understanding landed costs, and adhering to GAAP standards to ensure accurate financial reporting and profitability analysis. Brittany emphasizes that successful inventory management is not just about accounting but also about engaging in the operational processes that affect financial outcomes. Takeaways Inventory accounting is crucial for understanding financial health. Operational maturity is essential for accurate financial reporting. Accrual accounting provides a clearer picture of profitability. Cost of Goods Sold impacts both the balance sheet and profit and loss statements. Engagement in inventory management processes is key to success. Landed costs must be considered for accurate product valuation. GAAP standards ensure consistency in financial reporting. Understanding gross profit margins is vital for business sustainability. Accurate inventory accounting can prevent financial losses. Collaboration between accountants and business owners is necessary for success. Chapters 00:00 Introduction to Inventory Accounting Challenges 05:13 Understanding the Flow of Inventory Accounting 10:23 The Importance of Accurate Cost of Goods Sold 15:14 Navigating Financial Statements and Profitability 20:18 Engagement and Operational Maturity in Accounting 25:09 Conclusion: Mastering Inventory Accounting 25:55 Understanding Cost of Goods Sold 28:26 Landed Product Costs Explained 33:29 The Importance of Accurate Costing 34:11 Defining Cost of Goods Sold vs. Cost of Sales 38:57 The Impact of Accurate Financial Reporting 45:26 Inventory Management and Profitability Work with Us Struggling to make sense of your ecommerce financials? Let LedgerGurus handle your accounting so you can focus on growth—https://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&utm_medium=podcast&utm_campaign=e9 Take control of your inventory accounting and unlock real profitability with our inventory consulting services—https://ledgergurus.com/ecommerce-accounting-services/inventory-consulting-for-ecommerce/?utm_source=RSS&utm_medium=podcast&utm_campaign=e9

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  E8: How to Calculate the Impact of Tariffs on Your Profitability

  E8: How to Calculate the Impact of Tariffs on Your Profitability

  E08

  19 Febbraio, 2025

  36:21

  Summary In this episode of the Ecommerce Finance Podcast, Stephen Brown and Kelley Birrell discuss the financial implications of tariffs on businesses, particularly in the ecommerce sector. They explore how tariffs affect cost structures, profitability, and pricing strategies, emphasizing the importance of understanding customs value and elasticity of demand. The conversation also covers potential strategies for managing increased costs, including supply chain adjustments and efficiency improvements, while providing insights into the current economic landscape for ecommerce businesses. Download the FREE Tariff Impact Calculator: https://ledgergurus.com/portfolio/tariff-impact-calculator/?utm_source=RSS&utm_medium=podcast&utm_campaign=e8 Takeaways Tariffs are impacting businesses in real-time, requiring immediate decisions. Understanding customs value is crucial for calculating tariff impacts. Higher cost of goods sold leads to greater profitability challenges. Elasticity of demand plays a significant role in pricing decisions. Businesses must consider whether to absorb costs or pass them on to consumers. American manufacturers may benefit from increased tariffs on imports. Supply chain adjustments can be complex and time-consuming. Efficiency improvements are essential for maintaining profitability. Businesses need to scrutinize their spending more than ever due to rising costs. Chapters 00:00 Understanding Tariffs and Their Impact on Business 09:48 Strategies for Managing Increased Costs 20:22 Analyzing Price Elasticity and Consumer Behavior 29:52 Exploring Alternatives and Future Considerations Work with Us https://ledgergurus.com/the-ecommerce-finance-podcast/real-impact-of-tariffs/?utm_source=RSS&utm_medium=podcast&utm_campaign=e8

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  E7: Tariffs 101

  E7: Tariffs 101

  E07

  12 Febbraio, 2025

  33:07

  Summary In this episode of the Ecommerce Finance Podcast, Stephen Brown and Bryce Judy discuss the complexities of tariffs, particularly focusing on the de minimis rule and its implications for e-commerce businesses. They explore recent changes in tariff policies, the impact on dropshipping, and the importance of compliance and accurate classification in trade. The conversation also covers duty drawbacks, customs processes, and best practices for importers navigating the evolving landscape of international trade. Takeaways The de minimis rule allows low-value shipments to enter duty-free. Recent tariff changes significantly impact e-commerce sellers. Duty drawback allows importers to reclaim duties on exported goods. Accurate classification is crucial to avoid fines and delays. Customs value is determined by the retail value for formal entries. Tariff engineering can help reduce tariff costs legally. Working with customs experts can save money in the long run. Misclassification can lead to severe penalties for businesses. Ecommerce businesses must stay informed about tariff changes. Navigating customs processes requires careful documentation and strategy. Sound Bites "This is a massive change for low value shipments." "You can classify it yourself, but it's risky." "Proceed with caution is probably the best advice." Chapters 00:00 Introduction to Tariffs and Tarifflo 02:50 Recent Changes in Tariff Regulations 05:32 Understanding De Minimis Rule Changes 08:01 Impact of Tariffs on E-commerce 11:01 Duty Drawbacks Explained 14:08 Key Components of Trade Compliance 16:41 Classification Process and Customs Procedures 19:06 Understanding Tariff Calculations 20:42 Best Practices for Managing Tariffs 23:07 Navigating Customs Disputes 25:50 Strategies for Tariff Mitigation 28:19 Country of Origin and Compliance 31:11 Conclusion and Future Considerations Work with LedgerGurus https://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&utm_medium=podcast&utm_campaign=e7