You'd be surprised how often we’ve seen many cost-saving opportunities hidden inside Shopify and ecommerce financials and people don’t even know what to look for!
Think of your ecommerce financials like a treasure hunt. There is gold hidden inside, you just need to know where to look.
To find out exactly where to look for these hidden treasures, watch our short YouTube video 5 tips to save your ecommerce brand A TON of money
In the meantime, here's a summary:
1) Every penny matters
- Look at your subscriptions at least twice a year
With so many subscriptions needed to run your ecommerce business, many forget how many they actually have and how much they cost, without trying to get a better rate. You should be looking at your list of subscriptions at least twice a year, otherwise, you’re going to end up paying for things you don’t even use. This money adds up.
- Negotiate savings as much as you can
Find opportunities wherever you can to negotiate. Can you save 5 cents per unit with your supplier? Can you negotiate your merchant fees with your payment processors?
Multiply what you can save for one unit by the number of units that you’re selling, and it adds up to a huge difference at the end of the year. This means more take-home pay for you or more money to invest back into the business.
2) Focus on your profit
No matter how much you’re making, even if it’s $12 million a year in revenue, if you’re putting all of your money into your ad spend, you can end up having a net loss every year.
It might sound less sexy to scale down your revenue from an eight-figure brand and reduce ad spend, but focusing on your profit and thinking about your bottom line will help you to make a profit and not a loss.
3) Keep your taxes in a separate account
Keep all of your sales taxes, quarterly taxes, income taxes and all of your other taxes in a separate account. Trust us, it’s going to hurt a lot less to lose that money when it never was really yours, to begin with.
4) Don’t undervalue your own time
Outsource whatever admin tasks you can outsource for a reasonable price. An hour of your time spent on admin means less time spent on bringing in customers, working on the supply chain, and doing something that actually relates to the actual operations of the company.
5) Reconsider your tax structure to make sure it’s still the right fit for you
If you are a profitable ecommerce brand, and you’re filing taxes as a single member LLC on your Schedule C or as a partnership, you’re paying about 14% more in self-employment taxes than you have to be.
Switching your structure to an S corporation will save a lot of money in self-employment taxes!
Want to find out more ways of saving you money? Only accurate and real-time financials will give you the full picture of your financials.
Sign up HERE to get your financials set up today.
We are a technology company providing automated end-to-end accounting service to ecommerce businesses. Our system connects to your apps, syncs all your data and reconciles your books in real-time, replacing your bookkeeper, your accounting software, and your ecomm integrations. We offer reconciled books available 24/7, tax-saving insights, and a single place for all your financial data.
*The information provided on this website does not, and is not intended to, constitute legal advice. All information, content, and materials available on this site are for general informational purposes only. Readers are advised to consult with their attorney or accountant with any questions or concerns.*