Summary

Stephen Brown, COO at LedgerGurus and host of the Ecommerce Finance Podcast, sits down with Stacy Walker, Director of Growth at LedgerGurus. They break down the four margins every ecommerce brand should be tracking and why most 7- and 8-figure sellers only understand one of them. The conversation focuses on why founders feel profitable but still struggle with cash and confidence in their numbers.

This episode explains gross margin, contribution margin, net operating margin, and net profit margin in plain language. Stephen and Stacy walk through what each margin actually tells you, where brands get them wrong, and how bad data hides real problems. Listeners walk away knowing which margin points to pricing issues, ad efficiency problems, or bloated overhead.

Key Takeaways

• Gross margin isolates product and inventory costs, so you can see pricing and supply chain pressure early.

• Bad inventory data makes gross margin look fine, while profit quietly erodes.

• Contribution margin shows what is left after selling costs and determines how much room you have to operate.

• Low contribution margin leaves no buffer for payroll, software, or growth mistakes.

• Advertising efficiency is often the biggest driver of contribution margin swings.

• Net operating margin reveals whether overhead is sustainable as the business grows.

• Payroll is usually the largest hidden drain on operating margin.

• Net profit margin can hide problems when debt, taxes, or owner expenses are mixed into operations.

Chapters

00:00 Understanding Financial Margins in Ecommerce

02:41 The Importance of Accurate Profitability Tracking

05:36 Gross Margin: Definition and Common Misunderstandings

08:16 The Impact of Cost of Goods Sold on Profitability

10:55 Inventory Management and Its Financial Implications

13:48 Contribution Margin: What It Is and Why It Matters

16:38 Balancing Gross and Contribution Margins

19:26 The Role of Advertising in Contribution Margin

22:16 Operational Efficiency and Financial Health

25:44 Understanding Net Operating Margin

33:15 The Importance of Debt Management

39:10 Decoding Profit Margins

46:45 Cash Flow vs. Profitability

48:27 Scrutinizing Fixed Expenses

50:46 Final Thoughts on COGS Management

Guest Info

Stacy Walker on LinkedIn

If you want clarity on which margin is actually hurting your business, our CFO advisory team helps ecommerce founders turn messy numbers into clear decisions.

https://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&utm_medium=podcast&utm_campaign=e24

Summary: In this episode, Stephen Brown and Preston Alder discuss their predictions for the e-commerce landscape in 2026. They cover a range of topics including tariffs, interest rates, inflation, the rise of AI, the value economy, and the implications of a K-shaped economy. The conversation delves into the challenges and opportunities that e-commerce businesses will face, emphasizing the importance of execution excellence and inventory optimization. They also explore the potential risks associated with private equity in the current economic climate.

Key Takeaways

• Tariffs are likely at peak levels but will stay elevated long term.

• Sellers should budget assuming current tariff rates do not improve.

• Falling interest rates may not reduce ecommerce lending costs.

• Inflation pressure still threatens consumer spending power.

• Consumers continue spending, even under economic stress.

• AI tools are already reducing labor and service costs for operators.

• AI-driven commerce may reshape how customers discover products.

• Ad costs may rise, but better targeting can lower acquisition costs.

• Execution and operational discipline will matter more than size.

• Brands that fail to adapt may not survive the next cycle.

Chapters

00:00 Predicting the Future of E-commerce

02:13 Understanding Tariffs and Their Impact

04:59 Interest Rates and Their Implications

08:48 Inflation: The Consumer's Perspective

11:48 The Rise of AI in E-commerce

24:22 Navigating the Value Economy

30:08 The Importance of Brand Communication

32:24 AI and Employment Concerns

34:14 Emerging Channels in E-Commerce

37:14T he Future of Advertising

42:10 Winners and Losers in E-Commerce

46:05 The State of the US Economy

56:20 The Private Equity Bubble

If economic pressure is making your numbers harder to trust, our ecommerce accounting team helps you see what’s really happening so you can plan with confidence.

https://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&utm_medium=podcast&utm_campaign=e23

Summary

Stephen Brown, Founder of LedgerGurus, and Kelley Birrell, Marketing Manager at LedgerGurus, look back at the ecommerce predictions they made at the start of 2025. They review what actually happened across ecommerce growth, marketing costs, interest rates, inflation, and AI adoption. Each prediction is graded with real data and real-world operator context.

They also unpack the biggest curveballs of the year, including tariffs, de minimis rule changes, TikTok Shop growth, and the limits of new ad channels. Stephen shares where he underestimated risk, what surprised him about consumer spending, and why 2025 felt harder than expected for many brands. The episode helps sellers think more clearly about planning for 2026.

Takeaways

• Ecommerce returned to peak levels as a share of total retail sales.

• Marketing efficiency mattered more than chasing cheaper ads.

• Interest rate cuts did not meaningfully lower ecommerce lending costs.

• Inflation eased but continued to pressure consumer spending.

• Tariffs became the most disruptive force for ecommerce in 2025.

• De minimis rule changes reshaped dropshipping economics fast.

• TikTok Shop showed real growth but limited broad adoption.

• AI meaningfully reduced time and costs across teams.

• Supply chain risks faded compared to late 2024 fears.

• New sales channels added options but not replacements.

Chapters

00:00 Ecommerce Trends and Predictions for 2025

03:27 Marketing Costs and Brand Strategies

06:16 Interest Rates, Inflation, and Economic Impact

07:15 Business Regulations and Tariffs

09:15 The Rise of TikTok Shop

11:18 AI's Role in Ecommerce

13:46 Supply Chain Complexities

14:31 De Minimis Rule Changes

16:00 Emerging Sales and Marketing Avenues

Guest Info

Kelley Birrell on LinkedIn

Bio

Kelley Birrell is the Marketing Manager at LedgerGurus, an ecommerce accounting firm serving growing online businesses. She built and runs LedgerGurus’ marketing engine, focusing on making complicated ecommerce accounting topics easier to understand so business owners can make better decisions with their numbers.

If 2025 exposed weaknesses in your cash flow, inventory, or margins, LedgerGurus can help you fix the numbers behind your growth.

https://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&utm_medium=podcast&utm_campaign=e22

Summary

In this episode of the Ecommerce Finance Podcast, Stephen Brown speaks with Oliver Blackmore from Elver Ecommerce Accountants about the complexities of VAT (Value Added Tax) for ecommerce businesses, particularly those looking to expand into the UK and EU markets. They discuss the differences between VAT and sales tax, the registration process for American sellers, common mistakes in VAT compliance, and the tools available for calculating and filing VAT.

The conversation also covers the implications of selling on platforms like Amazon versus direct sales, the importance of understanding filing frequencies, and the challenges of navigating GST in English-speaking countries. Oliver shares insights on best practices for managing VAT refunds and offers recommendations for businesses looking to expand internationally.

Takeaways

• VAT is a tax added at the point of sale, similar to GST.
• American ecommerce businesses must register for VAT to sell in the UK.
• The VAT registration process for overseas businesses is more complex.
• Amazon collects and remits VAT for sellers using their platform.
• It's crucial to keep sales from different platforms separate for VAT accounting.
• Businesses can reclaim VAT on their costs, improving cash flow.
• Late filing of VAT returns can result in significant penalties.
• Drop shipping has become more challenging due to VAT regulations in the UK.
• Understanding GST in countries like Canada and Australia is essential for international sellers.
• Businesses should consider their registration and filing requirements when expanding internationally.

Chapters

00:00 Introduction to VAT and Ecommerce

01:34 Understanding VAT: Basics and Comparisons

04:25 Selling in the UK: Registration Requirements

06:10 VAT Registration Process for International Sellers

10:09 Penalties and Compliance for VAT

14:13 Common Mistakes by International Sellers

16:28 Tools for VAT Calculation and Filing Frequency

19:22 Expanding Beyond the UK: Global Marketplaces

24:28 Navigating GST in English-Speaking Countries

27:20 Common Pitfalls in VAT for International Sellers

30:40 Understanding VAT Returns and Refunds

32:54 The Impact of Brexit on International Trade

38:00 Final Thoughts on Global Expansion Strategies

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https://ledgergurus.com/ecommerce-accounting-services/sales-tax/?utm_source=RSS&utm_medium=podcast&utm_campaign=e21

Summary

In this conversation, Kurt Bell from Dash.fi discusses the innovative corporate credit card solutions offered by the company, focusing on their unique value propositions such as cash back incentives and ad pay protection services.

The discussion highlights how these offerings can significantly benefit businesses engaged in digital advertising and shipping, ultimately leading to substantial savings and enhanced financial management.

Takeaways

• Dash.fi specializes in corporate credit cards for digital advertising.
• The main value proposition is cash back and high limits.
• Ad pay protection is a complementary service to the credit cards.
• Businesses can save significantly on ad spend with Dash.fi.
• Incremental savings can reach 30-40K through ad pay protection.
• Cash back on ad spend enhances overall value for clients.
• Dash.fi targets companies with substantial digital advertising budgets.
• The combination of services provides a competitive edge.
• Understanding client needs is crucial for tailored financial solutions.
• Dash.fi aims to simplify financial management for businesses.

Chapters

00:00 Introduction to Ad Refunds in Ecommerce

02:41 Understanding the Impact of Fraudulent Traffic

05:31 Navigating Refund Requests with Meta and Google

08:08 Identifying Bad Actors in Ad Traffic

10:55 Trends in Ad Spend and Diversification

13:21 The Evolution of Payment Methods in Advertising

16:15 Emerging Advertising Channels and Strategies

18:59 The Future of AI in Advertising

21:37 Leveraging Cash Flow for Ecommerce Success

24:31 The Changing Landscape of Ecommerce

27:06 Dash.fi's Innovative Solutions for Brands

34:06 General podcast ad.mp4

Guest Info

Dash.fi

Kurt Bell on LinkedIn

Bio

Kurt Bell is the Director of Enterprise Sales at Dash.fi, where he helps businesses access innovative financial solutions to drive growth. With a strong foundation in business and leadership from Weber State University and experience mentoring teams in the Dominican Republic, Kurt is passionate about building lasting client relationships and delivering impactful results.

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https://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&utm_medium=podcast&utm_campaign=e20

Summary

In this episode of The Ecommerce Finance Podcast, Stephen Brown and Mark Lupton discuss the intricacies of strategic finance in the eCommerce sector. They explore the importance of understanding exit strategies, aligning founder goals with business strategies, and the significance of long-term and medium-term planning.

The conversation delves into the common pitfalls in strategic finance, the role of intuition in decision-making, and the necessity of financial planning and budgeting. Mark emphasizes the importance of identifying blind spots and bottlenecks in business operations and the need for continuous learning and adaptation in financial strategies.

Takeaways

• Understanding what you want from your business is crucial.
• Aligning personal goals with business strategy prevents tension.
• Long-term vision should consider life stages and personal fulfillment.
• Medium-term planning focuses on enterprise value drivers.
• Prioritization is key in strategic planning for growth.
• Intuition plays a significant role in decision-making.
• Identifying blind spots can prevent costly mistakes.
• Financial planning should extend beyond the P&L to the balance sheet.
• Learning from budgeting helps improve future decisions.
• Smaller businesses can benefit from strategic finance practices.

Chapters

00:00 Introduction to Strategic Finance

02:51 Understanding Exit Strategies

05:23 Aligning Business Goals with Personal Vision

08:02 Long-Term Planning and Vision

10:40 Medium-Term Planning and Strategic Finance

13:27 Prioritizing Business Growth

16:17 The Importance of Strategic Thinking

18:45 Avoiding Common Thinking Pitfalls

21:38 Navigating Growth and Leadership Challenges

26:37 Understanding Founders' Strengths and Weaknesses

28:44 The Importance of Measuring Progress

30:27 Bottlenecks and Strategic Planning

32:17 Annual Planning and Budgeting Essentials

35:46 Strategic Finance Beyond the P&L

38:27 Debt Strategies and Cash Flow Management

41:13 Learning from Budgeting and Forecasting

43:50 Applying Strategic Finance to Smaller Businesses

46:23 Common Pitfalls in Strategic Finance

Guest Info

Greenhouse Business Advisors

Mark Lupton on LinkedIn

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https://ledgergurus.com/ecommerce-accounting-services/inventory-consulting-for-ecommerce/?utm_source=RSS&utm_medium=podcast&utm_campaign=e19

Summary

In this episode of the Ecommerce Finance Podcast, Stephen Brown and Chris Hondl from Finale Inventory discuss insights gained from a decade of building ecommerce software, focusing on inventory management, the evolution of ecommerce, and the challenges faced by businesses today. They explore the importance of establishing standard operating procedures, the differences between ERP systems and federated systems, and the benefits of bootstrapping a tech company versus seeking venture capital.

The conversation also touches on the future of ecommerce, the impact of AI, and the necessity for businesses to adapt and evolve in a competitive landscape.

Takeaways

• The ecommerce landscape has become increasingly competitive and complex over the years.

• Inventory management has shifted from basic operations to a more rigorous and strategic approach.

• Establishing standard operating procedures is crucial for effective inventory management.

• Businesses must evolve to maintain profitability in a changing market.

• Bootstrapping a company can lead to better financial outcomes compared to taking venture capital.

• AI is transforming consumer behavior and marketing strategies in ecommerce.

• The future of ecommerce is promising, with continued growth expected.

• Companies need to focus on creating unique value propositions to stand out.

• Effective inventory management requires discipline and consistency in processes.

• Understanding financial metrics like EBITDA is essential for business success.

Chapters

00:00 The Journey of Finale Inventory

01:48 Evolving Inventory Management Practices

05:27 Top Tips for Effective Inventory Management

09:59 Common Pitfalls in Inventory Management

13:43 ERPs vs. Federated Systems

18:41 Bootstrapping Finale Inventory

19:37 Bootstrapping Success: The Journey of Finale Inventory

26:21 Understanding Financial Outcomes: Venture Capital vs. Bootstrapping

30:20 The Future of Ecommerce: Trends and Predictions

36:35 AI in Ecommerce: Opportunities and Challenges

Guest Info

https://www.finaleinventory.com/

Email - Chris Hondl on LinkedIn

Bio

Chris Hondl leads the engineering team at Finale. With over 30 years of industry experience, Chris was previously the VP of Engineering for Core Mobility where he had responsibility for systems serving hundreds of thousands of mobile phone customers. Chris earned his BS in Mathematics and MS in Computer Science from Stanford University.

If you need help with your ecommerce accounting, reach out to us: https://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&utm_medium=podcast&utm_campaign=e18

Summary

In this episode of The Ecommerce Finance Podcast, Stephen Brown interviews Ben Hussey, co-CEO of Katana, discussing the complexities of manufacturing and inventory management in the current ecommerce landscape. They explore the challenges posed by rising costs, supply chain disruptions, and the importance of real-time data for effective decision-making.

Ben shares insights from his extensive experience in ecommerce, highlighting the shift towards hybrid business models and the necessity for brands to adapt to changing market conditions. The conversation emphasizes the need for strategic planning and the value of technology in navigating the evolving ecommerce environment.

Takeaways

• Cost of goods sold increased dramatically due to future buying.
• Real-time data is crucial for effective inventory management.
• Businesses need to diversify their supplier base to mitigate risks.
• Planning and forecasting demand accurately is essential.
• The shift to hybrid business models is becoming more common.
• Companies that adapt quickly to changes are more likely to succeed.
• Inventory management requires active engagement and oversight.
• Technology has made it easier for small businesses to thrive.
• Understanding true landed costs is vital for pricing strategies.
• The e-commerce landscape is evolving, requiring new skills and strategies.

Chapters

00:00 Introduction to Ecommerce and Manufacturing Challenges

02:51 Ben Hussey's Journey in Ecommerce

05:29 State of Manufacturing and Inventory Management

08:37 Navigating Cost Drivers in Manufacturing

11:09 Trends in Supply Chain and Manufacturing Decisions

13:58 Global Disruptions and Market Responses

16:53 Shifts in Manufacturing Strategies and Business Models

20:23 Impact of Regulatory Changes on Ecommerce

22:57 Common Mistakes in Inventory Management

24:55 Ecommerce Evolution: Skills vs. Arbitrage

27:11 Key Differentiators for Business Success

29:45 The Importance of Active Management

32:17 Navigating Challenges in Consumer Products

36:52 Opportunities in a Changing Market

39:58 Recommendations for Future Success

Guest Info

• Katanamrp.com

Contact

• [email protected]
• Ben Hussey on LinkedIn

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https://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&utm_medium=podcast&utm_campaign=e17

Summary

In this episode of the Ecommerce Finance Podcast, Stephen Brown interviews Ryan King, CFO of Thread, discussing the evolution of the company from handcrafted wallets to a diversified manufacturing model. They delve into the complexities of navigating tariffs, the impact on pricing strategies, and the importance of supply chain diversification.

Ryan shares insights on managing costs, consumer behavior in response to price changes, and the future challenges facing the business as they adapt to a changing economic landscape.

Takeaways

• Thread started in 2014 with a simple idea of a better rubber band.
• The company evolved from handcrafted products to industrial manufacturing.
• Diversifying the supply chain helped mitigate risks associated with tariffs.
• Tariffs have a significant impact on pricing and consumer demand.
• Raising prices can lead to decreased consumer interest in non-essential items.
• Managing costs is crucial in response to increased tariffs.
• Finding new revenue opportunities is essential for growth.
• Consumer behavior is shifting due to rising prices across the board.
• The manufacturing landscape in the U.S. presents challenges for many businesses.
• Building relationships with manufacturers takes time and trust.

Chapters

00:00 Introduction to Thread and Its Journey

08:33 Transitioning from Handcrafted to Industrial Manufacturing

11:54 Navigating Tariffs and Supply Chain Diversification

18:55 The Impact of Global Tariffs on Business Strategy

22:44 Navigating Tariffs and Product Costs

26:37 Challenges in Manufacturing and Supply Chain

28:30 Pricing Strategies Amidst Uncertainty

30:42 Consumer Behavior and Price Sensitivity

34:35 The Impact of Cost of Goods on Business

39:02 Mitigating Costs and Revenue Strategies

45:09 Short-term vs Long-term Business Strategies

Guest Info

• Threadwallets.com

Contact

• Ryan King - Find him on LinkedIn

CTA

RSS - Work with Us

https://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&utm_medium=podcast&utm_campaign=e16

Summary

In this episode of the Ecommerce Finance Podcast, Stephen Brown interviews Alec Koenig, CEO of Settle, discussing the complexities of lending in the ecommerce space. They explore Alec's background in lending, the challenges ecommerce businesses face, and how Settle aims to provide innovative solutions that combine lending with software tools.

The conversation delves into the importance of cash flow, the impact of tariffs, and the necessity of financial hygiene for businesses seeking financing. They also discuss the future of ecommerce and how technology, including AI, will shape the industry.

Takeaways

• Alec Koenig has a strong background in lending and ecommerce.
• Settle was founded to improve accounts payable experiences for ecommerce businesses.
• The shift to online shopping during COVID highlighted inventory challenges for merchants.
• Ecommerce businesses face high failure rates, making lending difficult.
• Understanding cash flow is crucial for ecommerce success.
• Businesses should seek financing before they actually need it.
• Accurate financial reporting is essential for securing loans.
• Marketing efficiency is a key predictor of business success.
• Settle combines lending with software solutions to help businesses manage cash flow.
• The future of ecommerce will see increased reliance on technology and AI.

Chapters

00:00 Introduction to Ecommerce Lending Challenges

02:28 Alec Koenig's Journey and Settle's Mission

04:56 Understanding Ecommerce Lending Dynamics

07:36 The Risk of Lending in Ecommerce

10:11 Innovative Underwriting Approaches

12:52 Navigating Tariffs and Supply Chain Issues

15:44 Experiencing Customer Pain Points

18:07 Cash Flow Challenges in Ecommerce

20:53 Preparing for Lending: Key Considerations

23:23 The Importance of Financial Preparedness

25:41 Understanding Contribution Margins

28:15 Navigating Marketing Efficiency in Ecommerce

31:00 The Role of Technology in Lending

33:38 The Future of Ecommerce and Business Evolution

Guest Info

• Settle.com

Contact

• Alex Koenig - [email protected]

CTA

RSS - Work with Us

https://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&utm_medium=podcast&utm_campaign=e15