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 Business

Work With Us

If 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.

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 Info

• Scott Scharf
• Scott@scharftech.com
• https://www.linkedin.com/in/scottscharfcc/

Work with Us

Struggling 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.

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=e9

Take 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

Summary

In 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=e8

Takeaways

• Tariffs 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.

Chapters

00:00 Understanding Tariffs and Their Impact on Business

09:48 Strategies for Managing Increased Costs

20:22 Analyzing Price Elasticity and Consumer Behavior

29:52 Exploring Alternatives and Future Considerations

Work with Us

https://ledgergurus.com/the-ecommerce-finance-podcast/real-impact-of-tariffs/?utm_source=RSS&utm_medium=podcast&utm_campaign=e8

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 LedgerGurus

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

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 Sellers

Work with LedgerGurus

https://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&utm_medium=podcast&utm_campaign=e6

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."

Takeaways

• Avalara 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.

Chapters

00:00 Introduction to Sales Tax Changes in Ecommerce

02:09 Avalara's Role and Shopify Plus Integration

06:38 Migration Options for Shopify Plus Users

10:19 Understanding Sales Tax Complexity

11:34 Nexus: The Foundation of Sales Tax Obligations

19:05 The Registration Process for Sales Tax

21:30 Calculating Sales Tax: The Key Factors

28:39 The Importance of Product Taxability

31:26 Navigating VAT and International Sales Tax

37:02 The Future of Sales Tax Compliance

Work with LedgerGurus

https://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&utm_medium=podcast&utm_campaign=e5

Sales Tax Services

https://ledgergurus.com/ecommerce-accounting-services/sales-tax/?utm_source=RSS&utm_medium=podcast&utm_campaign=e5

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."

Takeaways

• TikTok 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.

Chapters

00:00 Introduction to TikTok and Social Commerce

03:02 The TikTok Shop Experience

05:42 Frictionless Shopping on TikTok

08:57 The Impact of TikTok Shop on Sales

11:54 Understanding TikTokable Products

15:08 The Future of TikTok and Social Commerce

22:29 The Psychology of Impulse Buying

24:26 Conversion Strategies for E-commerce

25:19 Understanding TikTok Shop's Fee Structure

27:36 The Evolution of Influencer Marketing

30:03 Transparency in Affiliate Marketing

33:10 The Future of Social Commerce

35:40 The Role of Live Shopping in E-commerce

39:28 Authenticity in Content Creation

40:10 Predictions for TikTok and Competitors

Work with LedgerGurus

https://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&utm_medium=podcast&utm_campaign=e4