If you are an e-commerce business, you need to have your margins at your fingertips. Understanding your margins for each of your SKUs lets you know if any of the products might be a good fit for marketplaces. They also help you assess if you have enough margin for customs duties on international sales. Finally, they will help you understand if you can offer free shipping, bundle discounts, or cash back options. But sadly, most e-commerce companies very rarely understand their margins as their costing may be off. They might be using standard costing, and because of that, the costs may not be current. They might not be factoring in their labor or machine costs. They might also not be factoring overheads. So what can companies do to measure their margins and track appropriately?
In today's episode, we invited a panel of cross-functional experts for a live interview on LinkedIn who brings significant expertise to discuss margins measurement and tracking for e-commerce. We covered many grounds in this episode, including how often the margins need to be tracked, different cost variables that might affect them, and how that would affect decision-making. Finally, we covered the KPIs eCommerce managers need to track to manage their roles and responsibilities effectively.
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