Given the current status of the coronavirus pandemic around the world, it’s no secret that a lot of businesses are having a tough time. With supply chains being halted and consumers being forced to stay indoors, brick-and-mortar businesses and big chains are facing all sorts of challenges that are set to test the sustainability and rigidity of one’s management. Of all businesses that are currently being affected greatly by the pandemic, however, there’s one unlikely victim that’s facing quite a bit of risk: e-commerce businesses.
An unsettling surprise
Reduced interactions and self-imposed quarantines may seem like they pose the best conditions for online selling. However, the current conditions spell out a picture that couldn’t be any more different.
As more and more people continue to lose their jobs and become far more scrupulous over their spending habits, e-commerce businesses are now facing a challenge in the form of dwindling customer numbers. Additionally, transaction numbers are beginning to lessen by the day, thanks to the growing threat of border closures and freight blockages—making the current situation an even bigger hurdle.
Nevertheless, you can still keep your e-commerce business afloat amidst the COVID-19 crisis with the right strategy. Let’s go over everything you need to know about fine-tuning your operations to maximise the limited income streams that you’re getting.
Understanding the root of the problem
In spite of the new measures and stimulus packages that the Australian government continues to roll out, online businesses are still at the mercy of consumers that are now strapped for cash and job security. Aside from the ongoing internal “needs vs. wants” debate amongst consumers, there are several other reasons e-commerce businesses are taking the brunt of the current crisis:
Manufacturing
Production
Freight logistics
Manufacturing, production, and freight logistics operations are running at a limited capacity, if at all, amid lockdowns. Understandably, the current supply of products is dwindling and may not be able to meet the demand.
How your business can overcome the challenge ahead
It may seem quite complex in nature, but there’s one thing that can support your efforts in overcoming the current crisis that your online business is facing: outsourced accounting.
With the help of a specialised accountant, you can essentially provide your e-commerce business with the very tools it needs to stay financially sound at all times. Through the help of an expert, you’ll be able to know what costs to forego, which expenses to conserve, and what opportunities for savings and optimisation can be undertaken.
Additionally, having an expert accountant to help take care of your financial needs can make a significant difference knowing where to head towards in the future. From forecasting and wealth generation to accounting software setups, the right professional can help prepare for your business well enough to weather the COVID-19 storm.
Conclusion
Given the conditions that are ever-prevalent in today’s Australian business landscape, it’s clear that e-commerce businesses should do everything in their power to stay afloat. It is a feat that can be achieved with the help of an expert accountant.
The E-Commerce Accountant provides expert e-commerce accounting services for Shopify stores, bloggers, and SMEs in Australia. Get in touch with us today to see how we can help your business succeed!