I see a lot of consumer product businesses treating Gross Margin like Contribution Margin. Sophisticated buyers know the difference. Ecommerce Finance Podcast: The State of Ecommerce M&A in 2025 ledgergurus.com/the-ecommerc… #ecommerce

Smart people understand gross margin and the difference between contribution margin. Usually people with money who will buy your business are smart. Get smart. Ecommerce Finance Podcast: The State of Ecommerce M&A in 2025 ledgergurus.com/the-ecommerc… #ecommerce

Supply chain concentration is a key factor that limits the value of a consumer product business. The State of Ecommerce M&A in 2025 ledgergurus.com/the-ecommerc… #ecommerce

What should a consumer products business owner do if they want to sell in 1-3 years? @JoshRobbins from the Premara Group walks through some key considerations. Ecommerce Finance Podcast: The State of Ecommerce M&A in 2025 ledgergurus.com/the-ecommerc… #ecommerce

What level of profitability are acquirers looking for with ecommerce businesses in 2025? According to @JoshRobbins from the Premara Group, buyers want 10-20% EBITDA Ecommerce Finance Podcast: The State of Ecommerce M&A in 2025. youtu.be/Grl7BIM_J4I?si=YF3F… #ecommerce

Costs to consider when implementing an inventory management system: - software - implementer - additional staff to support existing team during the rollout Ecommerce Finance Podcast ledgergurus.com/the-ecommerc… #ecommerce

When it comes to implementing an inventory management system, it is more important to choose the right implementer than the right tool. Ecommerce Finance Podcast ledgergurus.com/the-ecommerc… #ecommerce

Implementing an inventory management system involves a lot of information and time. An implementer can't succeed without inputs they don't have. Ecommerce Finance Podcast ledgergurus.com/the-ecommerc… #ecommerce

The role that is key to an inventory management system success: Operations Manager Ecommerce Finance Podcast ledgergurus.com/the-ecommerc… #ecommerce

First step to picking an inventory management system (IMS): STOP Each IMS has different strengths and weaknesses and understanding one's requirements is key to picking wisely. Ecommerce Finance Podcast ledgergurus.com/the-ecommerc… #ecommerce

Landed product costs is a concept ecommerce businesses need to understand. Good COGS requires landed product costs. Good COGS makes good financials Good financials makes for good business insights. Ecommerce Finance Podcast ledgergurus.com/the-ecommerc… #ecommerce

Calculating COGS for an inventory heavy business is... Complicated Which is why so many ecom businesses have inaccurate financials Which makes it hard to know how to improve one's business. Ecommerce Finance Podcast ledgergurus.com/the-ecommerc… #ecommerce

I don't know if I'm profitable. We hear this from ecommerce businesses when they first approach @LedgerGurus Accrual accounting is the answer. Ecommerce Finance Podcast ledgergurus.com/the-ecommerc… #ecommerce

Cash poor, inventory rich. This describes the reality of most consumer product businesses and yet... Inventory management is often lacking resulting in - Poor financial insights - Lost value due to shrinkage - Lost sales or excess costs ledgergurus.com/the-ecommerc… #ecommerce

Gross profit will make or break a business. Your gross profit margin cannot be > contribution margin which cannot be > profit margin. If a business is unprofitable, gross margin is the first place I look. Ecommerce Finance Podcast ledgergurus.com/the-ecommerc… #ecommerce

Tariff response decision: absorb the price or pass it on. This is the decision the majority of consumer product companies will be making this year. ledgergurus.com/the-ecommerc… #ecommerce

Assume a new tariff will happen at any moment. We're seeing changes real time so businesses need to have their plans if they don't already. Ecommerce Finance Podcast ledgergurus.com/the-ecommerc… #ecommerce

Increasing your prices due to tariffs may not have the intended outcome. You need to consider elasticity which considers that demand or orders sold will go down if prices go up. ledgergurus.com/the-ecommerc… #ecommerce

Have you recently decreased your purchasing of eggs due to increased prices? This is a real example of elasticity. It may be the dismal science, but economics is cool. Ecommerce Finance Podcast ledgergurus.com/the-ecommerc… #ecommerce

Tariff math says... The higher your Cost of Goods (customs value to be precise), the greater the impact of tariffs on the profitability to an ecommerce business. Ecommerce Finance Podcast ledgergurus.com/the-ecommerc… #ecommerce