Ecommerce Finance Podcast
Ecommerce Finance Podcast

Ecommerce Finance Podcast

Stephen Brown | LedgerGurus

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Episodes

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Hosted by Stephen Brown, COO of LedgerGurus and co-owner of DTC brand Sole Toscana, this podcast is your go-to resource for mastering the financial side of ecommerce.

Stephen and his team have worked with hundreds of brands through LedgerGurus which specializes in ecommerce accounting. Add to that his hands-on experience with Sole Toscana, gives him unique insights into the challenges and opportunities ecommerce businesses face.

On The eCommerce Finance Podcast, we dive deep into the financial side of ecommerce. Any topic is open for discussion as everything you do in business has a financial impact. Be prepared to go deep with experts and brand leaders on a variety of topics with an understanding of their financial impacts.

Join us as we bring you practical tips, expert insights, and real-world strategies to help you thrive with ecommerce.

Tune in and transform your ecommerce business today!

Recent Episodes

E9: Why Inventory Accounting is So Hard (but SO IMPORTANT) for Ecommerce Brands
FEB 26, 2025
E9: Why Inventory Accounting is So Hard (but SO IMPORTANT) for Ecommerce Brands
<p>In this episode of the Ecommerce Finance Podcast, Stephen Brown and Brittany Brown delve into the complexities of inventory accounting and its critical role in financial management for ecommerce businesses. They discuss the challenges of accurately tracking inventory, the importance of accrual accounting, and the implications of Cost of Goods Sold on financial statements. </p><p>The conversation highlights the necessity of operational maturity, understanding landed costs, and adhering to GAAP standards to ensure accurate financial reporting and profitability analysis. Brittany emphasizes that successful inventory management is not just about accounting but also about engaging in the operational processes that affect financial outcomes. </p><p></p><p><strong>Takeaways</strong> </p><ul><li>Inventory accounting is crucial for understanding financial health. </li></ul><ul><li>Operational maturity is essential for accurate financial reporting. </li></ul><ul><li>Accrual accounting provides a clearer picture of profitability. </li></ul><ul><li>Cost of Goods Sold impacts both the balance sheet and profit and loss statements. </li></ul><ul><li>Engagement in inventory management processes is key to success. </li></ul><ul><li>Landed costs must be considered for accurate product valuation. </li></ul><ul><li>GAAP standards ensure consistency in financial reporting. </li></ul><ul><li>Understanding gross profit margins is vital for business sustainability. </li></ul><ul><li>Accurate inventory accounting can prevent financial losses. </li></ul><ul><li>Collaboration between accountants and business owners is necessary for success. </li></ul><p></p><p><strong>Chapters</strong> </p><p>00:00 Introduction to Inventory Accounting Challenges </p><p>05:13 Understanding the Flow of Inventory Accounting </p><p>10:23 The Importance of Accurate Cost of Goods Sold </p><p>15:14 Navigating Financial Statements and Profitability </p><p>20:18 Engagement and Operational Maturity in Accounting </p><p>25:09 Conclusion: Mastering Inventory Accounting </p><p>25:55 Understanding Cost of Goods Sold </p><p>28:26 Landed Product Costs Explained </p><p>33:29 The Importance of Accurate Costing </p><p>34:11 Defining Cost of Goods Sold vs. Cost of Sales </p><p>38:57 The Impact of Accurate Financial Reporting </p><p>45:26 Inventory Management and Profitability </p><p> </p><p><strong>Work with Us </strong></p><p>Struggling to make sense of your ecommerce financials? Let LedgerGurus handle your accounting so you can focus on growth—<a target="_blank" rel="noopener noreferrer nofollow" href="https://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&amp;utm_medium=podcast&amp;utm_campaign=e9https://ledgergurus.com/ecommerce-accounting-services/inventory-consulting-for-ecommerce/?utm_source=RSS&amp;utm_medium=podcast&amp;utm_campaign=e9">https://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&amp;utm_medium=podcast&amp;utm_campaign=e9</a></p><p></p><p>Take control of your inventory accounting and unlock real profitability with our inventory consulting services—<a target="_blank" rel="noopener noreferrer nofollow" href="https://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&amp;utm_medium=podcast&amp;utm_campaign=e9https://ledgergurus.com/ecommerce-accounting-services/inventory-consulting-for-ecommerce/?utm_source=RSS&amp;utm_medium=podcast&amp;utm_campaign=e9">https://ledgergurus.com/ecommerce-accounting-services/inventory-consulting-for-ecommerce/?utm_source=RSS&amp;utm_medium=podcast&amp;utm_campaign=e9</a></p>
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49 MIN
E8: How to Calculate the Impact of Tariffs on Your Profitability
FEB 19, 2025
E8: How to Calculate the Impact of Tariffs on Your Profitability
<p><strong>Summary</strong></p><p>In this episode of the Ecommerce Finance Podcast, Stephen Brown and Kelley Birrell discuss the financial implications of tariffs on businesses, particularly in the ecommerce sector. They explore how tariffs affect cost structures, profitability, and pricing strategies, emphasizing the importance of understanding customs value and elasticity of demand.</p><p>The conversation also covers potential strategies for managing increased costs, including supply chain adjustments and efficiency improvements, while providing insights into the current economic landscape for ecommerce businesses.</p><p></p><p><strong>Download the FREE Tariff Impact Calculator: </strong><a target="_blank" rel="noopener noreferrer nofollow" href="https://ledgergurus.com/portfolio/tariff-impact-calculator/?utm_source=RSS&amp;utm_medium=podcast&amp;utm_campaign=e8">https://ledgergurus.com/portfolio/tariff-impact-calculator/?utm_source=RSS&amp;utm_medium=podcast&amp;utm_campaign=e8</a></p><p></p><p><strong>Takeaways</strong></p><ul><li>Tariffs are impacting businesses in real-time, requiring immediate decisions.</li><li>Understanding customs value is crucial for calculating tariff impacts.</li><li>Higher cost of goods sold leads to greater profitability challenges.</li><li>Elasticity of demand plays a significant role in pricing decisions.</li><li>Businesses must consider whether to absorb costs or pass them on to consumers.</li><li>American manufacturers may benefit from increased tariffs on imports.</li><li>Supply chain adjustments can be complex and time-consuming.</li><li>Efficiency improvements are essential for maintaining profitability.</li><li>Businesses need to scrutinize their spending more than ever due to rising costs.</li></ul><p></p><p><strong>Chapters</strong></p><p>00:00 Understanding Tariffs and Their Impact on Business</p><p>09:48 Strategies for Managing Increased Costs</p><p>20:22 Analyzing Price Elasticity and Consumer Behavior</p><p>29:52 Exploring Alternatives and Future Considerations</p><p></p><p><strong>Work with Us</strong></p><p><a target="_blank" rel="noopener noreferrer nofollow" href="https://ledgergurus.com/the-ecommerce-finance-podcast/real-impact-of-tariffs/?utm_source=RSS&amp;utm_medium=podcast&amp;utm_campaign=e8">https://ledgergurus.com/the-ecommerce-finance-podcast/real-impact-of-tariffs/?utm_source=RSS&amp;utm_medium=podcast&amp;utm_campaign=e8</a></p>
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36 MIN
E7: Tariffs 101
FEB 12, 2025
E7: Tariffs 101
<p><strong>Summary</strong> </p><p>In this episode of the Ecommerce Finance Podcast, Stephen Brown and Bryce Judy discuss the complexities of tariffs, particularly focusing on the de minimis rule and its implications for e-commerce businesses. They explore recent changes in tariff policies, the impact on dropshipping, and the importance of compliance and accurate classification in trade.</p><p>The conversation also covers duty drawbacks, customs processes, and best practices for importers navigating the evolving landscape of international trade. </p><p><strong>Takeaways</strong> </p><ul><li>The de minimis rule allows low-value shipments to enter duty-free. </li></ul><ul><li>Recent tariff changes significantly impact e-commerce sellers. </li></ul><ul><li>Duty drawback allows importers to reclaim duties on exported goods. </li></ul><ul><li>Accurate classification is crucial to avoid fines and delays. </li></ul><ul><li>Customs value is determined by the retail value for formal entries. </li></ul><ul><li>Tariff engineering can help reduce tariff costs legally. </li></ul><ul><li>Working with customs experts can save money in the long run. </li></ul><ul><li>Misclassification can lead to severe penalties for businesses. </li></ul><ul><li>Ecommerce businesses must stay informed about tariff changes. </li></ul><ul><li>Navigating customs processes requires careful documentation and strategy. </li></ul><p><strong>Sound Bites</strong> </p><p>"This is a massive change for low value shipments." </p><p>"You can classify it yourself, but it's risky." </p><p>"Proceed with caution is probably the best advice." </p><p><strong>Chapters</strong> </p><p>00:00 Introduction to Tariffs and Tarifflo </p><p>02:50 Recent Changes in Tariff Regulations </p><p>05:32 Understanding De Minimis Rule Changes </p><p>08:01 Impact of Tariffs on E-commerce </p><p>11:01 Duty Drawbacks Explained </p><p>14:08 Key Components of Trade Compliance </p><p>16:41 Classification Process and Customs Procedures </p><p>19:06 Understanding Tariff Calculations </p><p>20:42 Best Practices for Managing Tariffs </p><p>23:07 Navigating Customs Disputes </p><p>25:50 Strategies for Tariff Mitigation </p><p>28:19 Country of Origin and Compliance </p><p>31:11 Conclusion and Future Considerations </p><p><strong>Work with LedgerGurus</strong></p><p><a target="_blank" rel="noopener noreferrer nofollow" href="https://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&amp;utm_medium=podcast&amp;utm_campaign=e5">https://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&amp;utm_medium=podcast&amp;utm_campaign=e7</a> </p><p></p>
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33 MIN
E6: The Cost of Selling on Amazon in 2025
FEB 5, 2025
E6: The Cost of Selling on Amazon in 2025
<p>In this episode of The Ecommerce Finance Podcast, Stephen Brown and Liz Adamson discuss the evolving landscape of Amazon fees and the challenges sellers face in 2025. They explore the rising costs of advertising, the complexities of Fulfillment by Amazon (FBA), and the impact of Chinese sellers on the marketplace. </p><p>Liz emphasizes the necessity of advertising for success on Amazon and the importance of building a strong brand to compete effectively. The conversation also touches on the implications of Amazon's fee structure and the strategies new sellers should adopt to thrive in this competitive environment.</p><p></p><p><strong>Sound Bites</strong> </p><p>"If you're not advertising, you are losing sales." </p><p>"Amazon is a pay-to-play environment now." </p><p>"FBA is becoming harder and harder for sellers." </p><p></p><p><strong>Takeaways</strong> </p><ul><li>Amazon fees have increased significantly, now taking up to 60% of sales. </li></ul><ul><li>Advertising costs are rising due to increased competition and new ad products. </li></ul><ul><li>Sellers MUST invest in advertising to achieve visibility on Amazon. </li></ul><ul><li>FBA reimbursement changes could impact sellers' margins. </li></ul><ul><li>Sellers need to be aware of their fee structures to manage costs effectively. </li></ul><ul><li>The influx of Chinese sellers is reshaping the competitive landscape on Amazon. </li></ul><ul><li>Building a recognizable brand is crucial for long-term success. </li></ul><ul><li>New sellers should prepare for significant upfront investment in marketing. </li></ul><ul><li>Amazon's fee structure is under scrutiny due to antitrust concerns. </li></ul><ul><li>Sellers must adapt to changes in FBA policies and shipping requirements.</li></ul><p></p><p><strong>Chapters</strong> </p><p>00:00 Introduction to Amazon Fees and Ecommerce Landscape </p><p>02:29 Rising Costs: Understanding Amazon Fees </p><p>05:10 Advertising Strategies for Success on Amazon </p><p>07:24 The Importance of Advertising for New Sellers </p><p>10:09 Navigating FBA Changes and Challenges </p><p>13:09 Inventory Reimbursement Changes and Implications </p><p>15:48 FBA Shipment Strategies and Seller Responsibilities </p><p>18:39 Current Trends and Future Outlook for Amazon Sellers </p><p>20:21 Amazon's Power and Seller Scrutiny </p><p>26:23 Understanding FBA and Seller Fulfilled Prime </p><p>26:27 Referral Fees and Competitive Landscape </p><p>28:17 Amazon Haul: A New Marketplace Strategy </p><p>32:05 Challenges for American Sellers </p><p>38:45 Succeeding on Amazon: Strategies for New Sellers</p><p></p><p><strong>Work with LedgerGurus</strong></p><p><a target="_blank" rel="noopener noreferrer nofollow" href="https://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&amp;utm_medium=podcast&amp;utm_campaign=e5">https://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&amp;utm_medium=podcast&amp;utm_campaign=e6</a></p>
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41 MIN
E5: Shopify Plus Sales Tax Changes & Deep Dive into Sales Tax Complexity
JAN 29, 2025
E5: Shopify Plus Sales Tax Changes & Deep Dive into Sales Tax Complexity
<p>In this episode of the Ecommerce Finance Podcast, Stephen Brown and Mac Wright from Avalara discuss the upcoming changes to sales tax for Shopify Plus users. They delve into the complexities of sales tax calculation, the importance of understanding nexus, and the registration process for compliance.</p><p>Mac explains how Avalara's tax engine simplifies the sales tax process for ecommerce businesses, while also addressing the challenges posed by varying tax laws across states and countries. The conversation highlights the need for businesses to stay informed and compliant in an ever-evolving tax landscape.</p><p></p><p><strong>Sound Bites</strong></p><p>"Sales tax is a complex and annoying world."</p><p>"Nexus is your relationship with the state."</p><p>"You need to collect tax if you have nexus."</p><p></p><p><strong>Takeaways</strong></p><ul><li>Avalara has been a leader in tax technology for over 20 years.</li></ul><ul><li>The relationship between Shopify and Avalara is changing with new tax solutions.</li></ul><ul><li>Businesses must migrate to new tax engines by April 30, 2025.</li></ul><ul><li>Sales tax is complex and requires understanding of nexus and registration.</li></ul><ul><li>Nexus determines a business's obligation to collect sales tax.</li></ul><ul><li>Collecting sales tax before registering can lead to complications.</li></ul><ul><li>Sales tax calculation involves where, who, and what.</li></ul><ul><li>Different customers may have different tax obligations.</li></ul><ul><li>VAT is a significant consideration for international sales.</li></ul><ul><li>Staying compliant with sales tax is crucial to avoid penalties.</li></ul><p></p><p><strong>Chapters</strong></p><p>00:00 Introduction to Sales Tax Changes in Ecommerce</p><p>02:09 Avalara's Role and Shopify Plus Integration</p><p>06:38 Migration Options for Shopify Plus Users</p><p>10:19 Understanding Sales Tax Complexity</p><p>11:34 Nexus: The Foundation of Sales Tax Obligations</p><p>19:05 The Registration Process for Sales Tax</p><p>21:30 Calculating Sales Tax: The Key Factors</p><p>28:39 The Importance of Product Taxability</p><p>31:26 Navigating VAT and International Sales Tax</p><p>37:02 The Future of Sales Tax Compliance</p><p></p><p><strong>Work with LedgerGurus</strong></p><p><a target="_blank" rel="noopener noreferrer nofollow" href="https://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&amp;utm_medium=podcast&amp;utm_campaign=e5">https://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&amp;utm_medium=podcast&amp;utm_campaign=e5</a></p><p><strong>Sales Tax Services</strong></p><p><a target="_blank" rel="noopener noreferrer nofollow" href="https://ledgergurus.com/ecommerce-accounting-services/sales-tax/?utm_source=RSS&amp;utm_medium=podcast&amp;utm_campaign=e5">https://ledgergurus.com/ecommerce-accounting-services/sales-tax/?utm_source=RSS&amp;utm_medium=podcast&amp;utm_campaign=e5</a></p>
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43 MIN