By: Michelle Dimas, Staff Accountant
When it comes to managing your Amazon or e-commerce business, no one knows the ins and outs of your business better than you. As a small business owner, you have a firm grasp on supplier relationships, the products that are selling, and your market share. But, do you know how each of these items is impacting your bottom line?
E-commerce entrepreneurs’ most common “pain point” is inventory management. We are often told, “I can’t keep up on my inventory! My products are selling quickly, but I don’t know if I’m making any money.”
You are not alone. There are many different pieces involved in this equation, creating complexity. We have outlined helpful tips for novice and experienced Amazon sellers to help you get a better grasp on key factors in this equation.
Get to know Amazon Seller Central (or another selling platform) and the model.
Every e-commerce platform is different. By spending time immersing yourself in the Amazon Seller Central platform, you’ll become familiar with all of the data and selling opportunities available.
Remember: Customers Drive Inventory!
- Stay on top of feedback. As sellers, you can help drive your customer feedback in a positive direction by offering promotions to returning customers, inserting business cards in packages, and responding to customer concerns and complaints in a timely manner.
- Calculate sufficient lead time. Although you may not see the money draining your bank account, you could be losing a significant amount of money by missing opportunities with potential customers. By monitoring your top performers, you can better calculate which products to reorder and which will be the most efficient use of your capital.
- Learn from your competition. Sellers are very rarely the only supplier in their market. By spending some time researching other sellers in your same market space, you can learn from their successes, and mistakes, and begin to better position yourself for future customers.
Invest in a business adviser that can help streamline your accounting and financial reporting.
The bottom line: Forming a partnership with a business advisor you trust is one of the best investments you can make for your business. An excellent business advisor can help streamline your business processes and data, allowing you to spend more time doing what you do best.
If you would like more information about how we can provide you with relevant, meaningful data and assist you in making timely management decisions, please contact The Amazon Accountants today.
Let us help you turn your data into action items that will directly impact your bottom line. We are not in the business of merely generating reports and sending them – we create a customized experience that can evolve with your business and your business needs.
Simply put: You sell stuff online; we help you account for it.