7 Overlooked eCommerce Expenses
Running a business costs money. There are many expenses that you will need to take into account when trying to make a profit. If you have an eCommerce business, the following may apply to you.
1. Bank Fees
Banks charge monthly fees that you need to keep in mind when creating your budget. These won’t be the highest expenses that you have, but they can add up. In some cases, keeping a minimum amount of money in your account can reduce the fees that you have to pay.
2. Refunds or Returns
Not every customer will be entirely happy with their purchase. Whether there was an accident during the shipping process, or the item just didn’t meet their expectations, returns and refunds are bound to happen. Make sure to take this into account.
3. Employee Salaries
Unless you are the sole employee of your company, which is unlikely to be the case if you continue to grow, you will need to make room in your budget for payments to your workers. It is important that these payments are made on time or you risk losing your employees.
4. Shipping Products
When it comes to shipping, you may only be thinking of the cost to the carrier. While these are certainly important, they are not the only costs related to shipping items. You will also need to pay for supplies, like boxes and tape. You will likely charge for shipping but should make sure you have the finances to pay for it upfront.
5. Product Sourcing
In order to sell a product, you must first find it. Make sure that the items you are selling are both high-quality and in demand. Attempting to sell products that nobody wants to buy will only cost you money.
6. Software
Your eCommerce business will likely need software for many tasks. Trying to do everything on your own will use up time you could spend on more productive matters. Automation software will cost you money, but it can make your job easier and your business more efficient.
7. Platform Fees
No matter where you are selling your products, there will be fees you need to pay. These will vary depending on the individual platform, so make sure you pay attention to the details.
While you may have several expenses you need to pay to keep your eCommerce business running, many of them will help your company grow over time. Make sure that you create a budget with these in mind.
