🚀 How to double your e-commerce profits: Just master this e-commerce team financial management method!

E-commerceNo understanding of finance = all the hard work is in vain? Boss, where did all your profits go?

In e-commerce, is it about traffic or products? Neither is entirely correct.

What really determines how much money you make is actually theFinancial management skills.

I used to feel that IInternet marketingI was doing well, and the orders kept coming in, but when I looked up the accounts at the end of the month, I realized that I had worked for nothing for another month.

Now let's takeThe Importance of Financial Management for E-commerce TeamsBreak it down and explain it clearly, and teach you a fewSimple and easy-to-use financial management method that takes effect immediately, allowing you to change from "selling more and earning less" to "selling more and earning steadily".

Inventory piles up higher = profits get thinner and thinner?

Many bosses have a misunderstanding: as long as the product is selling well, it is worth continuing to replenish stock.

wrong!

You have to know that the more unprofitable goods you sell, the greater the loss.

We have made this mistake before. We tried to stock up as soon as a hot product started to gain volume. As a result, once the platform rules changed and traffic dropped, the piles of inventory put a strain on our capital chain.

How did we solve it later?

Check the product gross profit table every day.The profit contribution of each product must be examined.

If a productLong-term lack of profit, or profit lower than expected,, then start the clearance plan without hesitation.

On the contrary, if some products have good conversion and high profits, we will immediately increase our investment and simultaneously develop “same product but different versions”.

Product financial analysis is the underlying logic for product selection.

Stop just looking at GMV, it doesn’t equal money!

Low labor efficiency = company being “boiled like a frog in warm water”?

To be honest, nowadays many teams tend to get out of control when there are too many people.

Do you think that if you hire ten sales people and five customer service staff, your revenue will naturally double?

It's so funny. The reality is that the more people there are, the lower the efficiency.

How do we do it? Here is a methodology:

Divide the team into several small groups, and have each group calculate profits independently.

Then look at how much money each person makes for the company each month, that is,Human efficiency = personal profit contribution.

If a team's productivity continues to be low for three months, we will:

• Optimize the process
• Adjustment of positions
• Even layoffs of redundant staff

For teams with high labor efficiency, we will add resources, bonuses and manpower!

For example, if we have a team of 3 people whose monthly profit is higher than that of another team of 5 people, what should we do? We should decisively promote and raise the salaries of these 3 people, and copy their methods to other teams.

You can calculate it yourself using this formula:

Labor productivity = Net profit / Total number of employees

If your company's net profit is less than the total salary of its employees, then you are basically "doing charity."

Sales are high but the boss is poor = funds are not invested in the right place

Do you often hear people bragging: "I sell a million a month!"

But when asked to take out 2 yuan to invest in a new project, he said that he was short of funds.

Why?

Because he didn’t understand—Money is a cost, but also a resource.

You have to ask yourself, can every dollar spent bring quantifiable returns?

We made aFund distribution table, clearly listed:

• Where did the money go?
• What is the return on each project?
• What is the channel with the lowest ROI?

Here is a painful lesson:

In the past, we spent 10 yuan to hire a KOL to promote our products, but in the end we only sold less than 3 products.

Later, we turned the money around and invested it in a high-gross-margin independent website product, and the ROI went straight to 2.5!

Funds are used to make profits, not for you to spend comfortably.

If you don't settle the account, it will come to you sooner or later.

If you don't manage it, the profits will slip away.

What should e-commerce finance be responsible for?

Three major sectors: goods, people and money.

• goods: It is the gross profit, turnover and inventory clearance logic of each commodity.
• People: It is team division of labor, staff effectiveness evaluation, and efficiency optimization.
• money: It means whether every dollar spent is worthwhile and whether the ROI meets the target.

Bosses are often obsessed with "traffic strategies" and "delivery techniques", but ignoreFinancial affairs are the physical examination report of the enterprise.

Whether a company is mature or not can be determined by its financial system.

What is a master?

An expert is not someone who works overtime every day to write plans or thinks on his feet in meetings, but someone who can use an income statement and a few cash flow indicators to read the health of a company in seconds.

The strong play with profits, the weak compete with sales.

An e-commerce boss who is familiar with finance can look at data like a doctor looking at a CT scan and identify the problem at a glance.

Don’t be a burnout player who “drives high sales but loses all profits” anymore.

It's time to make finance your core weapon in managing your business.

Final ThoughtsKey points review:

• Finance is the underlying logic of e-commerce.
• Three core elements: inventory management, labor efficiency optimization, and capital allocation.
• Not understanding finance = losing money without knowing it.

Take action now!

✅ Make a “single product profit analysis table” immediately.

✅ Hold a “human efficiency review meeting” once a month.

✅ Set a red line for “return on capital investment” and stop investing if it is lower than the limit.

Only by truly taking control of your finances can you keep the profits from e-commerce firmly in your pocket!

Don't let your hard work fail due to management details.

Save this article and stop being a boss who only knows how to “sell goods”. You can become an entrepreneur who truly knows how to “make money”!