Accounting of the online store price is an important metric that helps businesses understand their profit margins and set prices strategically. But while brick-and-mortar stores can simply look around at their inventory and add up the cost of materials, online sellers must account for additional costs like shipping, storage, and taxes. This makes ecommerce accounting more complicated than traditional bookkeeping. In this article, we’ll explore 10 essential principles of ecommerce accounting to help you understand what goes into the cost of goods sold (COGS) and how to accurately work it out for your business.
Understanding COGS is a critical first step in scaling your online store. This metric represents the total costs of making or sourcing your products for sale and includes raw materials and labor, but excludes indirect costs such as warehousing and transportation expenses. It’s also critical to factor in any recurring or monthly costs that may impact your gross profit, such as website hosting and domain, customer support, inventory storage, and marketing costs.
Other important metrics to track include revenue, average order value, and conversion. Revenue shows how much your store is earning per transaction, average order value reflects the amount each customer pays on average, and conversion measures how many people are making purchases in your store. The more people you have purchasing in your store, the higher your conversion rate. You can increase your conversion by promoting your products on social media, improving the user experience on your site, and leveraging your email database to deliver relevant content. Счетоводство на онлайн магазин цена