Category Archives: Financial Management

Articles on business profitability, pricing, accounting, bookkeeping and financing options.

Financial Management Made Easy: Tools and Services For Online Sellers

Managing your finances can be a nightmare. These tools and services reduce headaches, increase accuracy and help find new opportunities.

Very often, marketplace sellers focus on the more exciting parts of their business, like product sourcing, and shy away from areas that they find boring, or difficult, like managing their finances.

This can be counterproductive, because no matter how you feel about getting your finances in order, it’s a necessary part of running any business. It’s a discipline that sellers need to embrace, and become proficient at, so they really understand the numbers that matter.

You don’t have to spend hours in Excel to keep on top of your record keeping and accounts. There are tools and services specifically made to help manage bookkeeping for ecommerce businesses. These help make the process more efficient, while also minimizing the risk of errors.

There are also tools that produce reports to help you see how your business is doing. It’s easy to lose sight of the bigger picture when you are busy all day dealing with suppliers, listing products and providing customer support. But being able to see how profitable you are, at any time and at any level of detail, is crucial to business success.

Expanding into new product lines, or increasing purchase levels to get better discounts, can also make a big difference to your business. Some sellers choose to take out loans, or use other cash flow solutions, so they can take advantage of new opportunities when they present themselves, or plan for the seasonal ups-and-downs of ecommerce.

In this post I’ll walk you through the Financial Management category of the Web Retailer directory. It covers Cash Flow and Loans, Accounting Connectors, Ecommerce Accounting and Sales Tax and VAT.

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Spotlight on Payability: The Quickest Way to Get Your Amazon Payouts

Amazon marketplace sellers can get their sales proceeds the next day using this innovative service

When businesses struggle, most of the time it isn’t due to low sales or inefficient management, it’s due to cash flow problems.

In fact, it’s when businesses are growing rapidly that they are most at risk: bills get bigger before sales do, and need to be paid before the cash starts rolling in. Stellar sales have actually been the downfall of many companies.

Amazon sellers are not immune to cash flow problems. Their sales proceeds are held for two weeks before being paid out, so stocks will dwindle and payment deadlines draw closer before they see a single cent. Businesses selling to Amazon as vendors have it worse, with typical payment terms of 30, 60 or 90 days after invoicing.

Payability is one business helping Amazon sellers and vendors tackle their cash flow problems. They take the age-old practice of “factoring” and offer it online to Amazon sellers at competitive rates. Here’s how it works and why you might want to use it.

Note: Payability is only available to Amazon sellers and vendors in the U.S.

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Build a Reliable Income on Amazon with the Velocity Retail Formula

People who can avoid temptation stand to make a lot more money on Amazon. Adam Hudson explains why.

This post is an excerpt from the book Primed: Your Guide To Building An Amazing Business On Amazon. Primed is available from Amazon.com and Amazon.co.uk, and its author Adam Hudson was profiled by Web Retailer in October 2016.

I want to share with you a fascinating study done in 1970 that put a group of 5-year-old kids into an observation room where each was presented with one marshmallow on a plate. The children were told that they could either eat the marshmallow now, or they could wait 20 minutes and they would receive a whole bag of marshmallows. Of those tested, only a few waited the 20 minutes.

The researchers then tracked those children for the next 40 years, studying their professional and financial progress. Using no other metric other than their ability to wait 20 minutes for a bag of marshmallows when they were 5 years old, those that had waited the 20 minutes became far more successful financially.

Fascinating!

For most everyday people who will be starting an Amazon business with modest financial means but a desire for time-free income, the same principle of delayed gratification will need to apply.

Why?

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Loans for Amazon and eBay Sellers: Your Questions Answered

Loans for Amazon and eBay Sellers

This post is by Radoslav Albrecht, the founder and CEO of Bitbond. Based in Berlin, Bitbond is a peer-to-peer lending platform that specializes in providing loans to online sellers and small businesses. The platform uses bitcoin as a payment network and is therefore available to everyone who has access to the internet. Previous to starting Bitbond, Radoslav was advising banks at Roland Berger Strategy Consultants and has worked for Deutsche Bank in London.

As a seller on eBay and Amazon you’ve doubtlessly thought about driving the growth of your online business. Whether its financing new inventory, hiring new staff, or keeping up with increasing demand, growing your business can be an expensive endeavor.

At Bitbond, we’ve helped finance 1,400 loans worth more than €740,000 to small businesses and online sellers. We operate globally, and often receive questions from international online sellers unsure whether a loan is the right choice for them. Our community is over 40,000 strong, but we recognize that many eBay and Amazon sellers still have doubts about growing their business with external financing.

Below, I have given detailed answers to the most commonly asked questions. We will cover all important aspects of financing for online sellers located in the US and abroad. With the information in this post, you will be able to decide if external financing is right for you, and what your next step should be.

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Ecommerce Loans: The Online Sellers’ Guide to Financing

Ecommerce Loans

This post is by Radoslav Albrecht, the founder and CEO of Bitbond. Based in Berlin (Germany), Bitbond is a peer-to-peer lending platform that specializes in providing loans to online sellers and small businesses. The platform uses bitcoin as a payment network and is available globally.

As an online seller you want to spend your time optimizing and growing your sales. Your products and the service you provide to your customers are at the center of your attention. Other administrative activities that don’t relate to making sales directly are often regarded as chores.

Frequently, this also applies to the financing of a retailer’s activities. As a financial product, loans and credit lines are often untried territory for online sellers. To someone who is not familiar with financing, the associated terms and costs might look opaque and not easily understandable.

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