Running a physical product business is cash flow intensive. After auditing hundreds of sets of books, Cyndi Thomason shares how understanding and managing your gross margin is essential to keeping your Amazon or eCommerce business healthy. Learn exactly what gross margin percentage Cyndi sees healthy online business owners have and how to increase your gross margin and cash flow.
Links Mentioned:
Cyndi Thomason - Bookskeep.com
Robyn Johnson - Marketplaceblueprint.com
Gross Profit Margins and Financial Health
Why Gross Margin is the Bottom Line for Ecommerce Sellers
01:05 What is gross margin and how does it impact scaling?
04:55 What is the minimum gross margin Cyndi recommends for e-commerce businesses
08:16 What can someone do if their margins are lower than 30%?
13:22 How using cash method accounting can hide potential gross margin issues.
15:20 How reviewing your books regularly can help you identify potential issues early.
18:00 Understanding the importance of reconciling inventory regularly.
20:30 What should you do if you expect you might have an issue with your gross margin?
28:00 The importance of taking a paycheck from your Amazon business.
31:35 Five Minute Fix: When should you start to prepare for your peak season?