eCommerce Profitability Explained: From Gross Sales to Net Income

How do you know if your ecommerce business is profitable? Do you know how to read your financial statements to determine that?
This video dives into the essentials of ecommerce profitability. Whether you're selling on Amazon, Shopify, or any other platform, understanding your financials is key to boosting your bottom line.
In this video, we'll break down the complex world of ecommerce accounting into bite-sized, actionable insights.
What you'll learn:
👉 Basics of Sales: Understand the difference between gross sales and net sales, and why it matters.
👉 Cost of Goods Sold (COGS): We’ll cover how these affect your gross margin.
👉 Maximizing Margins: Learn about the ideal gross margin ratio for ecommerce.
👉 Contribution Margin: Discover how to calculate and use this metric to cover fixed costs and improve profitability.
👉 Fixed vs. Variable Costs: Costs that don't fluctuate with sales volume still impact your profitability
👉 Beyond Operations: Explore how other income and expenses outside of day-to-day operations can impact your profitability.
👉 Inventory and Cash Flow: Learn why profitability doesn’t always mean more cash in hand and how inventory purchases can affect your finances.
If you're struggling with Amazon accounting, Shopify accounting, or just want to make your ecommerce business more profitable, this video is a must-watch!
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