3 Ways e-commerce can survive and thrive during hard times

Earlier this month, Chancellor Jeremy Hunt delivered the Spring Budget for 2023 and although he announced many positive measures, the budget failed to address the immediate challenges being faced by e-commerce businesses.

Despite Hunt seeming upbeat about the economy and hearing that forecast growth is better than expected, the British Independent Retailers Association warns e-commerce businesses that rough months are still ahead.

We look at three ways e-commerce businesses can survive and thrive during these hard times and how a specialist e-commerce accountant could help.

Become data-driven to make smarter decisions

Data-driven decision-making, using facts, data, and stats, will no doubt allow e-commerce businesses to make faster and smarter decisions during uncertain times.

Using data to inform your decision-making process provides e-commerce store owners with the power to make meaningful business decisions for sustainable growth.

With this advantage, e-commerce businesses can deliver an optimised shopping experience to customers, uncover customer insights, act in real-time, improve efficiency, and streamline work processes.

Likewise, using cloud-based accounting software will also allow e-commerce businesses to make smarter financial decisions. Innovative accounting software such as Xero provides businesses with a specialised service for real-time accounting and the ability to see their live market status and value.

With the leading accounting software Xero, e-commerce stores can get access to their business finances and accounts from anywhere with an internet connection at any time so important decisions can be validated around the clock, not just between nine and five.

Forecast for the future

During times of uncertain or rapid change, it is important for e-commerce businesses to forecast for the future.

Forecasting involves making predictions about the future. Nobody knows exactly how things in the future will pan out, but there are some precautions businesses can take to protect themselves based on past data.

An accurate cash flow forecast is the most effective way of predicting the future position of an e-commerce business and getting vital business spending insights.

E-commerce business owners can avoid cash shortages and potential bankruptcy during economic turbulence by forecasting cash flow and running through hypothetical scenarios and assessing the impact each has on business proceedings.

This is a helpful tool for e-commerce businesses to establish whether they can afford to make financial business decisions based on real data and figures.

Working with an e-commerce accountant can help e-commerce businesses hone their financial forecasts and be provided with accurate and easy-to-understand data to anticipate the future of the business and what comes next. E-commerce business owners should not leave the future down to chance and should reduce the risks and future-proof business now.

Evaluate efficiency

To ease the strain on the business, e-commerce stores should evaluate operational efficiency and look for ways to improve efficiency through the supply chain.

During a downturn period, lean operations can better position e-commerce brands and businesses. E-commerce businesses can do this by leveraging customer data online to predict product demand to manage the supply chain and overhead costs.

Optimised efficiency is crucial to an e-commerce business’s long-term profitability and sustainability. By improving efficiency and simplifying processes where possible, e-commerce companies can increase profit and reinvest funds for the future.

E-commerce accounting experts are more than your average accountant. They want to support e-commerce business owners to help their online businesses become a growing success.

At Unicorn Accounting, we know that e-commerce business can be complicated at the best of times and are on hand to help with a range of accounting services.

If you are an e-commerce business owner, we will work with you to get the most out of your e-commerce store and offer you advice and support along the way. With industry-leading accounting platforms and a team of e-commerce experts on hand, Unicorn Accounting can help you scale and prepare your business for the future.

For more information, get in touch.

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https://unicornaccounting.co.uk/blog/5-challenges-for-ecommerce-brands/

https://unicornaccounting.co.uk/blog/strategies-to-help-ecommerce-brands-manoeuvre-the-2022-recession/