If you feel that you will never see money in your Amazon account, and you always spend money while earning money, and even when the sales increase, the money in your hand is getting less and less, it is likely that your cash flow has a problem. Then please bookmark this article!
As early as August 22, Ren Zhengfei published the article "The whole company's business policy should shift from pursuing scale to pursuing profit and cash flow" in Huawei's internal forum. , from the pursuit of scale to the pursuit of profit and cash flow, in order to ensure that the crisis in the next three years will survive. As soon as the point of view was thrown out, the Internet exploded in an instant, and many people who ate melons asked questions, did the landlord's house have no food left?
The winter is very long, and it will be difficult to survive without stockpiling enough food. In the past 2021, it was quite a difficult year for cross-border e-commerce sellers, with exchange rate fluctuations, logistics delays, rising freight costs, and inventory backlogs. If you have a lot of money, you can still survive if you eat a little a day. If you don’t have much food left, or if you eat a lot, you will fall down accidentally. No matter if you are a big seller or a listed company, if you don’t plan well, you will still fall at risk.
Cash flow is to a company, just like blood is to our body, it is absolutely unstoppable. So how can we better maintain cash flow and increase profits? Little G shared 6 methods, you are welcome, you are welcome to take it away for collection!
1. Settle accounts and prepare money
With food in hand, don't panic in your heart, prepare the bullets and start working. Before running a store, ask yourself three questions: What is my sales target for this year? What is my profit? How much do I plan to stock? After answering these three questions, the business objectives will come out. According to the goal, the funds actually needed are reversed. In addition, you need to make some plans. When the market is good, give yourself ammunition to speed up. When the market adjusts, you have a reserve fund to deal with the winter. Generally speaking, it is relatively safe to reserve operating funds for 6 to 12 months. If it is lower than this range, it is necessary to find a way to supplement working capital.
2. Data-based and report-based operations
Feelings are often an illusion. When doing shop management, you must not rely on your feelings, even if your sixth sense is terribly accurate. Only by refining the operation and using data as support can the effect be seen most truly. When advertising, you can adjust the promotion strategy according to the report data trend, look at the business report, and see the relationship between sales and profit, whether the more you sell, the more you earn. If you sell more but earn less, then you need to pay close attention , Which link is wrong, and how to adjust it. Every day, every week, every month, every quarter, and every year, you can compare the operating data and calculate the benefits.
In the era of big data, to let the data "speak", it is necessary to comprehensively analyze and process all the data related to it, instead of relying on a small number of data samples. If you want to achieve refined operations, Jijia ERP is a good helper. The business data types are comprehensive, covering key links such as product, operation, supply chain, finance and management data; the business scenarios covered by the functions are comprehensive, from product development to Financial profit analysis, outsourced assembly, outsourced processing, multi-machine assembly, direct procurement and direct delivery, transit procurement and other complex scenarios have corresponding functions and solutions to help sellers manage cross-border e-commerce business in a process-based manner; based on cross-border e-commerce The underlying operation logic performs multi-dimensional summary, analysis and processing of captured data, fully covering daily business operation and management needs.
3. Throttle to the extreme
To improve cash flow, it is of course important to increase income, and it is equally important to reduce expenditure. In daily operations, which links can reduce costs?
First of all, in terms of fixed costs, personnel, space, office equipment, etc., can make the best use of everything and increase efficiency. Notice! This is not for the seller to squeeze employees, but to improve efficiency through performance incentives and other mechanisms; if you don’t squeeze employees, then exercise Party A’s rights and find ways to "squeeze" Party B, and use a larger supply volume to negotiate discounts Price, negotiating a longer billing period, and increasing your own cash flow.
4. Inventory follow the order
Inventory includes local inventory, overseas warehouse inventory and Amazon FBA inventory. There must be inventory, but it cannot be backlogged. Therefore, when we make stocking plans, we must be as precise as possible and try our best to match the sales plan. You know, inventory is not terrible, but the funds under pressure are terrible. Reducing inventory, speeding up turnover, and maintaining fast operation are effective means to solve the problem of improving cash flow, allowing one hundred yuan of funds to make two hundred yuan of business.
5. Clear inventory and promote payment
Plans always fail to keep up with changes, and no matter how precise the plan is, it will always be affected by various external factors. Once our sales plan does not go well and the products cannot be sold, there will be unsalable products. You must know that too many unsalable products will seriously affect the efficiency of capital turnover. Pay attention to the sales cycle of products, and see which categories cannot be sold, and they must be removed quickly. Discounts and promotions are multi-pronged. If you can't find it on the site, you can find it outside the site. Anyway, don't let go of various clearance channels.
6. Shorten the accounts receivable period
Cultivate the habit of checking the background balance every day, and take the initiative to withdraw money. Don't wait for Amazon to send you money in 14 days, take the initiative to order cash withdrawal. The money that is not in your pocket is not your own money. If you leave the money back on the Amazon platform without withdrawing cash, you may lose interest on the funds. If you are unlucky and violate the rules of the Amazon platform, the store will be closed or closed, and the store balance will be frozen by Amazon. Difficult to thaw. Therefore, you must always keep an eye on the balance of your store, manually withdraw money regularly, shorten the account receivable period, and maximize the flow of funds. If you operate multiple stores at the same time, don’t let go of all the stores.