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.

Top Practices of Seller Management to Outshine in eCommerce Business!

Best Practices of Seller Management to Outshine in eCommerce Business!

The acknowledgment of eCommerce marketplaces such as Amazon, Flipkart, Myntra, eBay, Ajio, Meesho, Shopify, etc. has continued to flourish with every passing year. The popularity of online marketplaces has accelerated after the COVID-19 pandemic. Customers prefer online shopping instead of stepping out of their house to a physical store. It is safe as well as convenient for customers from many aspects. While marketplaces provide the infrastructure for sellers to start their online business, sellers still require robust management and refinement to upgrade pricing, inventories, products, and fulfillment process.

Moreover, most successful sellers operate on multiple eCommerce platforms, selling products across states, which adds layers of complexities around taxes. Nowadays, customers want an effortless shopping experience. However, there is software for online sellers, such as eVanik OWS, that helps deliver a positive shopping experience to your customers by streamlining the back-office operations. In this blog, we have mentioned best practices for eCommerce marketplaces that sellers need to attain and implement successfully. Let’s find out why those practices are essential for an online seller. Apart from that, you will learn why seller management should be considered an essential factor in the eCommerce business.

Major Issues Faced by Sellers

Before jumping into the solutions or practices that can help sellers manage their online business accurately and efficiently, it is essential to know about the frequent issues faced by sellers.

Meager Product Catalogue Management

Numerous eCommerce sellers used to be physical store owners or wholesalers. Those who fall in this category don’t have prior experience in selling their products online. It is the fear of losing their business to eCommerce platforms that are driving them towards online selling. Since they don’t have any experience operating online businesses, they lack in creating and managing product catalogs. It can put them into a difficult position. They usually fail to list their products accurately on multiple platforms. The missing attribute of catalog management affects their rankings and increases the return rates, as customers fail to attain essential information about their products.

Frequent Interference of Brands

In the competition of selling more and more products daily, some desperate sellers are misleading eCommerce platforms to upsurge their rankings by listing fake details on products or using other attributes. In such a scenario, it has become challenging for genuine sellers to survive, as brands also question their loyalty. All these severe problems are affecting sellers extensively, and eCommerce marketplaces need to be vigilant and offer compelling solutions to sellers. However, some channels are already providing such solutions to them. If you are facing such issues, you need to move your business to platforms that help sellers resolve such problems.

Complicated Onboarding Process

Several eCommerce platforms have a complicated onboarding process, which can be the one major reason sellers have a tough time attaining success on an eCommerce platform. This issue can be resolved only when marketplaces take the initiative by making the onboarding process hassle-free. By improving the seller onboarding process, eCommerce ventures can make their sellers more comfortable.

Why Seller Management is Essential for eCommerce Sellers

To sell products on various eCommerce platforms, sellers must manage their business adequately. To provide an outstanding shopping experience to your customers, you need to manage inventories, payments, shipping, and returns in a compelling way. Without managing these aspects of your online business, you won’t be able to run your eCommerce business successfully. Poor seller management can disappoint your customers on various levels and ultimately push you towards a failed business. In this regard, you can take the advantage of any best eCommerce management software such as eVanik OWS. It can also help you manage inventory, payments, shipping, and returns by providing you with essential real-time data.

Best Seller Management Practices to Follow in 2022

Execute Onboarding Process Accurately

As a seller, if you genuinely want to grow your business and provide an efficient customer shopping experience, you must attain enough knowledge about onboarding on a specific eComm channel. To make it a hassle-free process, you need to gather all the essential information from the marketplaces and execute it accordingly. Before onboarding on any eComm platform, you must understand their selling process and sellers’ margins. Apart from that, you also need to know their guidelines for sellers. Onboarding on as many channels can upsurge your chances of making a solid customer base and helps you in generating revenue. Educate yourself enough to know all the tactics of eCommerce platforms.

Educate Yourself to Manage the Returns

Education never goes in vain, and it is essential for every aspect of life. It can become more critical when you are out there to earn your bread and butter. If you are an eCommerce seller, then you need to know each and everything about this business or get experts in your team to handle this. Order returns are one major pain area for eCommerce sellers and platforms. According to research, more than 60% of eCommerce returns are due to the mistakes of sellers and retailers. As soon as you get educated regarding the returns, the chances of returns will diminish automatically. In such a manner, you can also come along with some return reconciliation software like eVanik OWS. It can help you in managing your returns effectively.

Try Hard to Win the Buy Box Button

While operating an online business, your focus should be on winning the buy box button on various marketplaces. However, reaching the buy box button is not that easy when there is vast competition. To win the buy box, you have to follow several guidelines of marketplaces where you are selling your products. These guidelines include accurate listing, adequate shipping, frequent customer communication, and a tremendous shopping experience. All these essential factors can help you to win the buy box section. You can also take the help of the best eCommerce management software such as eVanik being used by many sellers already to automate the back-office operations. It can help you immensely in reaching the buy box button.

Conclusion

Thus these are some of the best practices you can make to sell your products hassle-free on various eCommerce platforms. Apart from these practices, as mentioned earlier, you should also include inventory management in this list. Managing inventories can also enhance your seller management. It can help you to serve your customers better and never disappoint them or let them face the situation of Oos (Out-of-stock). For outstanding inventory management, you can take the help of several inventory management software such as eVanik OWS.