Ecommerce Finance Podcast

SummaryIn this episode of the Ecommerce Finance Podcast, Stephen Brown and Lauren Maillard catch up on what’s really going on in ecommerce right now. They look back at Stephen’s predictions for 2025 - what he got right (and wrong) - and dig into big changes like new tariffs, the end of the de minimis rule, and what the “Big Beautiful Bill” actually means for sellers. They also chat about rising marketing costs, how AI is changing the way we search and shop, and what’s going on with TikTok. Plus, they dive into interest rates, economic curveballs, and smart ways to cut costs and build a brand that stands out. Takeaways Stephen shares his personal health journey and its impact on the podcast. The word of the year for ecommerce is 'tariff'. Tariffs have created significant challenges for ecommerce businesses. The de minimis rule is being phased out, affecting international drop shipping. The Big Beautiful Bill has both positive and negative implications for ecommerce. Marketing costs remain high, and AI is changing the landscape. There is a noticeable shift from Google to AI search tools like ChatGPT. AI is becoming a new sales channel for ecommerce businesses. TikTok's role in ecommerce is evolving, with mixed consumer engagement. Interest rates and inflation are creating economic challenges for ecommerce. Chapters 00:00 Introduction and Personal Update 02:33 Mid-Year E-Commerce Predictions Review 05:30 Impact of Tariffs on Ecommerce 08:39 The De Minimis Rule and Its Implications 11:35 Business Environment and the Big Beautiful Bill 14:43 Marketing Challenges and AI's Role 17:33 The Shift from Google to AI in Ecommerce 20:24 AI as a New Sales Channel 23:16 Conclusion and Future Outlook 25:07 The Evolution of Ecommerce e Purchases 26:53 The Future of Ecommerce and AI Integration 28:48 TikTok's Impact on E-Commerce 33:26 Navigating Economic Challenges in Ecommerce 40:40 Branding and Pricing Strategies in a Competitive Market 48:03 The Future of Ecommerce: Discipline and Strategy Work with Us https://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&utm_medium=podcast&utm_campaign=e12

7/16/25 • 51:29

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 BusinessWork With UsIf 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.

3/26/25 • 45:10

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 InfoScott Scharf Scott@scharftech.com https://www.linkedin.com/in/scottscharfcc/ Work with UsStruggling 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.

3/5/25 • 51:59

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=e9Take 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

2/26/25 • 49:22

SummaryIn 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=e8TakeawaysTariffs 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.Chapters00:00 Understanding Tariffs and Their Impact on Business09:48 Strategies for Managing Increased Costs20:22 Analyzing Price Elasticity and Consumer Behavior29:52 Exploring Alternatives and Future ConsiderationsWork with Ushttps://ledgergurus.com/the-ecommerce-finance-podcast/real-impact-of-tariffs/?utm_source=RSS&utm_medium=podcast&utm_campaign=e8

2/19/25 • 36:21

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 LedgerGurushttps://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&utm_medium=podcast&utm_campaign=e7

2/12/25 • 33:07

In this episode of The Ecommerce Finance Podcast, Stephen Brown and Liz Adamson discuss the evolving landscape of Amazon fees and the challenges sellers face in 2025. They explore the rising costs of advertising, the complexities of Fulfillment by Amazon (FBA), and the impact of Chinese sellers on the marketplace. Liz emphasizes the necessity of advertising for success on Amazon and the importance of building a strong brand to compete effectively. The conversation also touches on the implications of Amazon's fee structure and the strategies new sellers should adopt to thrive in this competitive environment.Sound Bites "If you're not advertising, you are losing sales." "Amazon is a pay-to-play environment now." "FBA is becoming harder and harder for sellers." Takeaways Amazon fees have increased significantly, now taking up to 60% of sales. Advertising costs are rising due to increased competition and new ad products. Sellers MUST invest in advertising to achieve visibility on Amazon. FBA reimbursement changes could impact sellers' margins. Sellers need to be aware of their fee structures to manage costs effectively. The influx of Chinese sellers is reshaping the competitive landscape on Amazon. Building a recognizable brand is crucial for long-term success. New sellers should prepare for significant upfront investment in marketing. Amazon's fee structure is under scrutiny due to antitrust concerns. Sellers must adapt to changes in FBA policies and shipping requirements.Chapters 00:00 Introduction to Amazon Fees and Ecommerce Landscape 02:29 Rising Costs: Understanding Amazon Fees 05:10 Advertising Strategies for Success on Amazon 07:24 The Importance of Advertising for New Sellers 10:09 Navigating FBA Changes and Challenges 13:09 Inventory Reimbursement Changes and Implications 15:48 FBA Shipment Strategies and Seller Responsibilities 18:39 Current Trends and Future Outlook for Amazon Sellers 20:21 Amazon's Power and Seller Scrutiny 26:23 Understanding FBA and Seller Fulfilled Prime 26:27 Referral Fees and Competitive Landscape 28:17 Amazon Haul: A New Marketplace Strategy 32:05 Challenges for American Sellers 38:45 Succeeding on Amazon: Strategies for New SellersWork with LedgerGurushttps://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&utm_medium=podcast&utm_campaign=e6

2/5/25 • 41:28

In this episode of the Ecommerce Finance Podcast, Stephen Brown and Mac Wright from Avalara discuss the upcoming changes to sales tax for Shopify Plus users. They delve into the complexities of sales tax calculation, the importance of understanding nexus, and the registration process for compliance.Mac explains how Avalara's tax engine simplifies the sales tax process for ecommerce businesses, while also addressing the challenges posed by varying tax laws across states and countries. The conversation highlights the need for businesses to stay informed and compliant in an ever-evolving tax landscape.Sound Bites"Sales tax is a complex and annoying world.""Nexus is your relationship with the state.""You need to collect tax if you have nexus."TakeawaysAvalara has been a leader in tax technology for over 20 years.The relationship between Shopify and Avalara is changing with new tax solutions.Businesses must migrate to new tax engines by April 30, 2025.Sales tax is complex and requires understanding of nexus and registration.Nexus determines a business's obligation to collect sales tax.Collecting sales tax before registering can lead to complications.Sales tax calculation involves where, who, and what.Different customers may have different tax obligations.VAT is a significant consideration for international sales.Staying compliant with sales tax is crucial to avoid penalties.Chapters00:00 Introduction to Sales Tax Changes in Ecommerce02:09 Avalara's Role and Shopify Plus Integration06:38 Migration Options for Shopify Plus Users10:19 Understanding Sales Tax Complexity11:34 Nexus: The Foundation of Sales Tax Obligations19:05 The Registration Process for Sales Tax21:30 Calculating Sales Tax: The Key Factors28:39 The Importance of Product Taxability31:26 Navigating VAT and International Sales Tax37:02 The Future of Sales Tax ComplianceWork with LedgerGurushttps://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&utm_medium=podcast&utm_campaign=e5Sales Tax Serviceshttps://ledgergurus.com/ecommerce-accounting-services/sales-tax/?utm_source=RSS&utm_medium=podcast&utm_campaign=e5

1/29/25 • 43:01

In this episode of the eCommerce Finance Podcast, Stephen Brown and Michelle Barnum-Smith delve into the world of TikTok Shop and its implications for social commerce. They discuss the unique aspects of TikTok as a shopping platform, the frictionless experience it offers, and the significant revenue opportunities it presents for brands.The conversation also covers the importance of identifying TikTok-able products, pricing strategies, and the evolving role of influencers in this new commerce landscape. With predictions for the future of TikTok and social commerce, this episode provides valuable insights for brands looking to navigate the changing ecommerce environment.Sound Bites"Impulse purchases thrive on TikTok.""The affiliate snowball effect is real."TakeawaysTikTok Shop combines social media with ecommerce, creating a unique shopping experience.Users spend an average of 90 minutes a day on TikTok, making it a powerful platform for discovery.The frictionless shopping experience on TikTok is significantly faster than on other platforms.TikTok Shop has generated $80 billion in gross merchandise value since its launch.Products that are demonstrable and solve a problem perform well on TikTok.Pricing between $20 and $50 tends to convert better on TikTok.TikTok's fee structure is more favorable compared to Amazon's.The influencer model on TikTok is evolving into a joint venture relationship with brands.Live shopping is gaining traction, but may not be suitable for all brands.The traditional influencer marketing model is shifting towards performance-based compensation.Chapters00:00 Introduction to TikTok and Social Commerce03:02 The TikTok Shop Experience05:42 Frictionless Shopping on TikTok08:57 The Impact of TikTok Shop on Sales11:54 Understanding TikTokable Products15:08 The Future of TikTok and Social Commerce22:29 The Psychology of Impulse Buying24:26 Conversion Strategies for E-commerce25:19 Understanding TikTok Shop's Fee Structure27:36 The Evolution of Influencer Marketing30:03 Transparency in Affiliate Marketing33:10 The Future of Social Commerce35:40 The Role of Live Shopping in E-commerce39:28 Authenticity in Content Creation40:10 Predictions for TikTok and CompetitorsWork with LedgerGurushttps://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&utm_medium=podcast&utm_campaign=e4

1/22/25 • 42:56

SummaryIn this episode of the Ecommerce Finance Podcast, Stephen Brown and Geoff Gualano discuss the critical role of accounting in ecommerce businesses. They explore the different phases of accounting maturity, from initial awareness to strategic forecasting and planning, emphasizing the importance of accurate accounting for business growth, investment opportunities, and overall financial health. The conversation highlights how understanding and implementing proper accounting practices can significantly impact a brand's success or failure in the competitive ecommerce landscape.TakeawaysAccounting can significantly impact the success of a brand.Many businesses start with no accounting practices in place.Phase one is about recognizing the necessity of accounting for taxes.Phase two focuses on gaining visibility into business performance.Accrual accounting is essential for ecommerce businesses.Understanding accounting can prevent cash flow issues.Phase three involves strategic forecasting based on historical data.In Phase four, investors and lenders require accurate financial statements.Proper accounting practices can enhance business valuation during acquisitions.AI may assist in accounting but won't replace the need for human oversight.Sound Bites"Accounting can make or break your brand.""You may not value your accounting, but you know who does? Lenders, investors, and people who want to acquire your business. ""Don't ignore maturing your financial and accounting practices over other areas of the business."Chapters00:00 The Importance of Accounting in Ecommerce01:49 Understanding Accounting Maturity Phases03:15 Phase One: The Awakening to Accounting06:24 Phase Two: Gaining Visibility into Business Performance11:39 Phase Three: The Transition to Strategic Accounting15:53 The Role of Accrual Accounting in E-Commerce21:18 Understanding Revenue Recognition Challenges23:13 The Importance of Accurate Financial Visibility25:18 Strategic Financial Planning and Forecasting28:31 Building Trust with Accurate Financials30:35 The Consequences of Poor Inventory Accounting33:25 The Four Phases of Accounting Maturity36:16 The Role of AI in Accounting AccuracyWork with LedgerGurushttps://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&utm_medium=podcast&utm_campaign=e3

1/15/25 • 39:40

In this episode of the Ecommerce Finance Podcast, Stephen Brown and Preston Alder discuss the critical aspects of budgeting and forecasting in ecommerce.They explore the importance of understanding cash flow, the phases of financial management, and the strategies for building effective budgets and forecasts.They emphasize the need for accurate accounting and the flexibility required in planning to adapt to changing business conditions.Ultimately, they highlight how a structured approach to budgeting and forecasting can lead to profitable growth and reduced stress in managing a business.Sound Bites"Cash is king.""The budget is a P&L forecast.""Winging it only gets you so far."TakeawaysBudgeting provides a clear picture of cash flow.Understanding cash flow is essential for daily decision-making.A structured budget helps in achieving profitable growth.Accurate financials are crucial for effective budgeting.Flexibility in planning allows for better adaptation to changes.The three phases of financial management are accounting, forecasting, and real-time measurement.Marketing and sales forecasts should be based on historical data.Cash flow forecasting is vital for inventory management.Regular reviews of budgets and forecasts help identify issues early.Building a budget requires collaboration across different business functions.Chapters00:00 Introduction to Budgeting and Forecasting02:32 The Importance of Budgeting in Business05:13 Understanding Cash Flow and Its Impact07:39 The Three Phases of Financial Management10:22 Building a Budget: The How and Who12:55 Marketing and Sales Forecasting Strategies15:35 The Role of Agencies in Marketing18:17 Lessons Learned from Outsourcing Marketing20:52 Forecasting for Growth: The 10 Million Dollar Brand21:59 Annual Cash Flow Forecasting: Strategies and Scenarios24:13 The Importance of Team Collaboration in Financial Planning26:01 Navigating Cash Flow and Budgeting Challenges28:31 The Role of Profitability in Business Growth30:36 Planning vs. Plans: The Importance of Strategic Flexibility35:11 The Impact of Profit Focus on Business OperationsWork with LedgerGurushttps://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&utm_medium=podcast&utm_campaign=e2

1/8/25 • 37:48

In this episode of The Ecommerce Finance Podcast, Stephen Brown and Kelley Birrell discuss the key ecommerce trends for 2025, focusing on market growth, digital marketing challenges, the impact of interest rates and tariffs, the potential of TikTok Shop, the role of AI, supply chain issues, and the implications of the de minimis rule.TakeawaysThe ecommerce market is showing positive growth heading into 2025.Digital marketing efficiency is a critical area for brands to focus on.Interest rates are projected to decrease, but inflation remains a concern.New presidential administration should be good for business, except for...Tariffs could significantly affect profit margins for ecommerce businesses.TikTok Shop presents new opportunities for sales but could be banned.AI tools are transforming marketing and content creation for ecommerce.Supply chain disruptions are expected, particularly with potential strikes at ports.The de minimis rule may change, impacting international drop shipping.New marketing avenues are emerging.Chapters00:00 Introduction to E-commerce Trends00:44 Positive E-commerce Market Outlook04:19 Challenges in Digital Marketing Efficiency08:12 Mixed Trends: Interest Rates and Inflation13:17 Business-Friendly Policies and Regulations15:32 Tariffs and Their Impact on E-commerce17:25 Navigating Tariffs and Cost Management20:24 The TikTok Shop Dilemma25:16 AI's Impact on E-commerce29:05 Supply Chain Complexities33:09 Understanding the De Minimis Rule36:30 New Avenues for Sales and MarketingWork with LedgerGurushttps://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&utm_medium=podcast&utm_campaign=e1

1/1/25 • 40:32

Welcome to the eCommerce Finance Podcast.This podcast is here so that owners, operators, and others in ecommerce can have a better understanding of the financial implications of what they're doing.The reality is everything in a business has a financial impact and therefore every topic is on the table.Listen and learn so that your business can grow, experience sustained profitability, and achieve success.Work with LedgerGurushttps://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&utm_medium=podcast&utm_campaign=e0

12/18/24 • 01:18