Financial Management Tips for eCommerce Business!

Financial Management Tips for eCommerce Business!

The eCommerce industry is absolutely a compelling business that is attracting a lot of new entrepreneurs on a daily basis. This evolving industry has provided immense opportunities to make people self-reliant. But managing your online business is not as easy as you think. If you are the one who is looking for an eCommerce startup, one of the essential aspects of managing your online business is to have a robust financial management system. Establishing your online store requires several strategies and a focus on accurately setting up every aspect of your business.

Along with considering inventory and shipping as crucial aspects, you must know how to handle your finances. After all, you will sell products on any eCommerce platform to generate revenue. To make a smooth flow of revenue generation, you require the best accounting software for your eCommerce business. Dedicated accounting software such as eVanik OWS can help you immensely with managing your finances adequately.

It can become more requisite when you plan to sell your products PAN India. In such a scenario, you have to track the taxes of every state, and it can be time-consuming. In this blog, we have mentioned some financial management tips that will help you as an eCommerce entrepreneur.

  • Register Your Business Legally

The first step you should take before managing your finances is to register yourself as a seller on various eCommerce platforms legally. To become an authorized seller, it is necessary to legalize your business. It is also an essential step because potential customers and manufacturers can check the authenticity of your business. Additionally, most banks in India will not let you open a corporate bank account without accurate business registration documents. Moreover, without proper registration, you won’t be able to sell your products on platforms like Amazon, Flipkart, Myntra, etc.

  • Open a Business Bank Account

Once you have established your business, the next step you should take in managing your finances is to open a dedicated business account. You should get one before you start earning income or spending money on other business-related aspects. So it is essential to segregate all your business flows from your personal finances.

It can become much easier for you to accurately handle your finances and taxes. It is also a legal requirement to have a separate business account. However, an individual seller may not legally require a business account. It is still advisable to get one as it can put you on the right path to managing your transactions properly. It is imperative during the tax filing season.

Establish a Secure Payment System

In the process of establishing your online business, it is crucial to set up a secure payment system. It is essential to ensure a great shopping experience for your customers. Before stepping into the eCommerce business, you must set up a streamlined payment process. It can help you in diminishing the cart abandonment rate as well. According to research, most customers abandon the cart after analyzing the insecure payment method.

You need to ensure the customers that their personal details are secure with you. You must consider offering various payment options to your customers, such as credit card, debit card, UPI, cash on delivery, etc. Payment gateways such as CCAvenue, PayUBiz India, and Razorpay keep the payment processing secure.

  • Initiate Efficient Bookkeeping

    It doesn’t matter how efficient and fast you are at doing the calculations manually for your eCommerce business. At last, we all are human and prone to making mistakes. To minimize the errors in keeping records of all your financial transactions, payment receipts, and other transactions, you need to maintain efficiency in bookkeeping. Efficient bookkeeping can help save you enough time when it comes to accounting. To execute this process effectively, you must consider integrated payment processing.

To maintain efficiency in bookkeeping, you can take the help of the best accounting software for eCommerce, such as eVanik OWS. It can help you screen several errors from the informational categories to maintain overall efficiency. To manage your finances in a proper manner, you need to maintain the cash flow and provide accurate bills to your customer.

Software like eVanik also helps to automate the invoicing as well. You can also send follow-up reminders, create recurring invoices, and accept digital payments directly from the invoices. It provides transparency that can let you make other decisions related to finances at any time and keeps you 100% GST compliant as with accurate records, filing GST on time becomes a cakewalk. In this way, you will have no requirement for consulting multiple accountants. It can even help you understand your customers’ spending habits.

  • Integration with Various eCommerce Platforms

To grow as an eCommerce entrepreneur, you need to sell your products on various eCommerce platforms. It means your financial task will increase, and managing the finances of various marketplaces will not be easy to handle. At this point, you require software for eCommerce that can integrate easily with various platforms and manage your back-office operations.

Manual entry of transactions and other expenses can include significant errors that can be time-consuming as well. On the other hand, accounting software can smoothly integrate multiple channels and provide systematic financial pieces of information. If you enter the eCommerce industry as a seller, you must consider the importance of such software to manage your finances without any hustle.

Conclusion

So these are several tips that you must adopt as an eCommerce entrepreneur. To manage your business’s financial flow, you must attain one robust accounting software. It can provide you quick overview of your income and other financial expenses. Eventually, it helps you with financial planning and fixes a budget for your eCommerce business. Accounting software facilitates you to analyze all your monetary data. In such a way, you will be able to streamline every aspect of eCommerce incredibly, such as inventory management and applying pricing strategies.

All these aspects can help you to stay competitive in the market. So, if you are willing to get along with accounting software to minimize the everyday stress, you must consider eVanik OWS. It can not only help you in managing the finances but also with the inventory, shipping, and returns. Apart from that, it has the remarkable features of tally prime integration, which you can use to file your GST smoothly. It also has the feature of Zoho book integration, Aligns books integration, and Quick books integration.

20 Reasons to use Order and inventory management systems

20 Reasons to use Order and inventory management systems

What is inventory management in E-commerce?

Inventory management in E-commerce is defined as the method of measuring the amount, pricing, location, and variety of products available for your business in the Market. It is a set of all the processes which are used to control and organize the goods or materials in your industry.

It is very necessary for retailers and e-commerce sellers to focus on inventory management to run Their business effectively and having a check on finance and accounts. It will help you to know which products are overstock, understock, and out of stock. Inventory management helps to keep a check on the financial activities of the organizations.

Logistics and Analytics plays a vital role in the inventory management system. This will helps you in understanding the purchasing trends of the customers.

What is the Order Management system?

An order management system (OMS) is an electronic system used to execute securities orders in an effective and cost-effective manner. E-commerce sellers use order management systems when filling orders for various types of securities and can track the progress of each order throughout the system The order management system(OMS) is also known as a trade order management system.

It is software system that facilitates and manages the execution of trade orders. In the financial markets, an order must be placed in a trading system to execute a buy or sell order for a security purpose.

order management systems offer real-time trading solutions, which allows the customers to know market prices and execute orders in multiple exchanges across all markets, by real-time prices. Some of the benefits that organizations can achieve from an order management system include managing orders and asset allocation of portfolios.

This article will walk you through the importance of inventory management and why E-commerce sellers need an inventory management system for their business.

1)  Speed up pick and pack process

The Order Management system is very necessary for the Effective management of the product. There are many advanced product management tools are available which, helps in exactly locating the item in the warehouse. Nowadays, all this process is controlled by real-time order management software. Once the product is getting out of the inventory, the packaging department receives the data about the product and packs it in the appropriate trunks.

2)Helps to keep an eye on the inventory

It is very necessary to maintain the products in the warehouses. Traditionally there was only one warehouse for one product, but nowadays, businesses are growing day by day with large exponential growth ,which needs effective inventory management. An e-commerce inventory management system tells about the details of the different product availability whether they are under stock, overstock, or out of stock. It keeps deep visibility into multiple warehouses.

3)For effective business practices

Inventory and order management systems help in Efficient business management. Traditionally the workers have to train about the working process of warehouse and products. But today due to digitalization it is very easy to manage. Proper inventory management saves our precious time and gets more value from the team members.3)For effective business practices

4)To delight customer experience

It is very necessary that e-commerce sellers should focus on improving the user experience of their purchasing. Some times e-commerce websites show products in stock, but when customers try to purchase, it shows out of stock. This will reduce the quality of the user experience. To tackle this problem, there should be proper inventory management.

5)To eliminate Deadstock

Having an organization. Planning and forecasting will help to improve the user experience. Having a bulk stock also can create a problem if you are not able to sell the products effectively. e-commerce sellers must eliminate deadstock, and reduce the wastage of inventory. This will reduce the extra storage costs.

6)For more directed Investment

The order and inventory management systems will help you to understand the historical trends regarding the demand for a particular product. This will helps you to know where you have to invest more money to stock the products in the warehouse. This will helps to calculate the quantities of products required in stock.

7)To improve the ability to meet market demands

It is very necessary to predict the future movement of the product demands and the purchase trends to effectively managed inventory. It helps you to give the data about the products and how it is moving. This helps to identify what products are more liked and purchased by the customers.

8)For improving marketing results

It is very important to track the inventory in the online e-commerce website for effective inventory management. Seller’s ratings and search rankings will be enhanced for these e-commerce sellers. It is very necessary to make sure that you are not stockpiling products that will not sell.

9)Helps to lower your stress

As the business grows and expands, it requires effective order and inventory management It is difficult to do manual inventory management. Advanced tools helps you to effectively maintain the orders and inventory management system with maximum efficiency.This will helps to reduce the stress of inventory management.

10)reduce the time required for inventory control.

Effective inventory management will help you to save your time required for managing the inventory. Good inventory management not only helps to reduce the time taken to track the products but also manage the orders.

11)For proper planning and Forecasting

For running a successful business it requires solid Planning. Advanced software will help you to improve demand forecasting by adequate analysis of data trends and movements of the products. This will reduce the handling costs and increases the revenue of the organization. Planning and forecasting will help to improve the user experience.

12)To improve the delivery

It is very necessary to deliver the required product on time. For tracking the movement of the products it is very important to know when the product will arrive and when it will be delivered to its required location. The late delivery creates disappointment in the customers and affects the growth of the business. That’s why it is necessary to have order and inventory management.

13)To ship packed products with integrated partners

Order Management system should be integrated with the logistics companies. This will helps you to choose high rated partners and to send products to the customers effectively.

14)To ensure the efficient changes to the Market

The order management system has several benefits. It will provide greater efficiency in managing orders across the enterprise. The Advanced software for order management system helps in faster response to the customer’s demands and helps to identify the market changes.

15) To Unleash your best fulfillment strategy

An order management system has the capability to integrate with order management software to make it easy for e-commerce sellers to provide options such as pay online and pick from stores, express delivery, or same-day delivery. This will only be possible if you are able to track your complete inventory across all channels and provide your users with all possible fulfillment solutions.

16) Update pricing strategy based on competition analysis

There are Repricing tools available to update the real-time prices of the products as per the market changes. We can update prices in real-time on different marketplaces. This will help you to maintain the consistency of your product’s price along with the consistency of the brand.

17) To Automate your most straightforward tasks

Order Management system allows you to do various tasks like sending notifications to your customers, printing labels, and invoices,etc. It will also help in saving your employees time. The complex tasks are easily managed and completed as far as possible.

18) Increased customer satisfaction

A good inventory management system ensures faster and correct delivery to customers which ultimately results in increased loyalty, sales, and a better brand reputation of the e-commerce sellers. Customer satisfaction is one of the most important things in any business. Customer satisfaction will help in the exponential growth of the organization.

19) Pick a Customized System

The business operations are very complex and difficult to manage. It becomes very important to select an excellent software program that supports all elements involved in the running of the business. When your business grows and your e-commerce needs to change, this will allow you to move to a new shopping cart solution which will minimize the impact on your business activities.

20) For Warehouse Integration

 It is very necessary to manage inventory across different warehouse locations. The inventory management software will provide integration for all the locations. With the help of order inventory management, it is easy to track the status of all the inventory through your computer screen.

 Conclusion

Traditionally the inventory management was very simple and the retailer sells products in front of their shop. Modern brands now have numerous channels to sell through e-commerce and social media. Inventory management software is paired with accurate channel management.

Inventory management touches many parts of your business. If there is a lack of management you cannot efficiently get items to customers when they need them. This can lead to different types of problems in the business. Inventory management helps in faster shipping, within the warehouse. you can easily know that you have the inventory on hand to ship. You’ll have more control over your inventory and be able to track it over different locations.

Hence for the E-commerce sellers, order and inventory management should be on their first priority.

eVanik offers robust Order and Inventory Management Solution for E-commerce sellers.