Stephen Brown

Engineer, MBA, enterprise software veteran, now running an ecommerce specialized accounting firm @LedgerGurus, with @brittbrown80

[Stephen Brown @stekbro]

@BillDA Meeting notes - rarely. Meeting note summaries - all the time.

[Stephen Brown @stekbro]

I see a lot of consumer product businesses treating Gross Margin like Contribution Margin.

Sophisticated buyers know the difference.

Ecommerce Finance Podcast: The State of Ecommerce M&A in 2025

https://t.co/cO9N7Sl0PN

#ecommerce

[Stephen Brown @stekbro]

Smart people understand gross margin and the difference between contribution margin.

Usually people with money who will buy your business are smart.

Get smart.

Ecommerce Finance Podcast: The State of Ecommerce M&A in 2025

https://t.co/cO9N7Skt0f

#ecommerce

[Stephen Brown @stekbro]

Supply chain concentration is a key factor that limits the value of a consumer product business.

The State of Ecommerce M&A in 2025

https://t.co/cO9N7Skt0f

#ecommerce

[Stephen Brown @stekbro]

What should a consumer products business owner do if they want to sell in 1-3 years?

@JoshRobbins from the Premara Group walks through some key considerations.

Ecommerce Finance Podcast: The State of Ecommerce M&A in 2025

https://t.co/cO9N7Skt0f

#ecommerce

[Stephen Brown @stekbro]

What level of profitability are acquirers looking for with ecommerce businesses in 2025?

According to @JoshRobbins from the Premara Group, buyers want 10-20% EBITDA

Ecommerce Finance Podcast: The State of Ecommerce M&A in 2025.

https://t.co/kKC1IUJOOy

#ecommerce

[Stephen Brown @stekbro]

Costs to consider when implementing an inventory management system:
- software
- implementer
- additional staff to support existing team during the rollout

Ecommerce Finance Podcast
https://t.co/tS82lDngAS

#ecommerce

[Stephen Brown @stekbro]

When it comes to implementing an inventory management system, it is more important to choose the right implementer than the right tool.

Ecommerce Finance Podcast
https://t.co/tS82lDmILk

#ecommerce

[Stephen Brown @stekbro]

Implementing an inventory management system involves a lot of information and time.

An implementer can't succeed without inputs they don't have.

Ecommerce Finance Podcast
https://t.co/tS82lDmILk

#ecommerce

[Stephen Brown @stekbro]

@seanmcginnis @roblabonne @girdley Agreed, most of implementer fees are going back to EOS worldwide. Still a good take for the implementer, but gross revenue is not gross margin here.

[Stephen Brown @stekbro]

The role that is key to an inventory management system success:

Operations Manager

Ecommerce Finance Podcast
https://t.co/tS82lDngAS

#ecommerce

[Stephen Brown @stekbro]

First step to picking an inventory management system (IMS): STOP

Each IMS has different strengths and weaknesses and understanding one's requirements is key to picking wisely.

Ecommerce Finance Podcast
https://t.co/tS82lDmILk

#ecommerce

[Stephen Brown @stekbro]

Landed product costs is a concept ecommerce businesses need to understand.

Good COGS requires landed product costs.

Good COGS makes good financials

Good financials makes for good business insights.

Ecommerce Finance Podcast
https://t.co/yzdg7185V8

#ecommerce

[Stephen Brown @stekbro]

Calculating COGS for an inventory heavy business is...

Complicated

Which is why so many ecom businesses have inaccurate financials

Which makes it hard to know how to improve one's business.

Ecommerce Finance Podcast
https://t.co/yzdg717y5A

#ecommerce

[Stephen Brown @stekbro]

I don't know if I'm profitable.

We hear this from ecommerce businesses when they first approach @LedgerGurus

Accrual accounting is the answer.

Ecommerce Finance Podcast
https://t.co/yzdg717y5A

#ecommerce

[Stephen Brown @stekbro]

Cash poor, inventory rich.

This describes the reality of most consumer product businesses and yet...

Inventory management is often lacking resulting in
- Poor financial insights
- Lost value due to shrinkage
- Lost sales or excess costs

https://t.co/yzdg7185V8

#ecommerce

[Stephen Brown @stekbro]

Gross profit will make or break a business.

Your gross profit margin cannot be > contribution margin which cannot be > profit margin.

If a business is unprofitable, gross margin is the first place I look.

Ecommerce Finance Podcast
https://t.co/Oh7cAQsTKj

#ecommerce

[Stephen Brown @stekbro]

Tariff response decision: absorb the price or pass it on.

This is the decision the majority of consumer product companies will be making this year.

https://t.co/nP7PSd73bQ

#ecommerce

[Stephen Brown @stekbro]

Assume a new tariff will happen at any moment.

We're seeing changes real time so businesses need to have their plans if they don't already.

Ecommerce Finance Podcast
https://t.co/nP7PSd73bQ

#ecommerce

[Stephen Brown @stekbro]

Increasing your prices due to tariffs may not have the intended outcome.

You need to consider elasticity which considers that demand or orders sold will go down if prices go up.

https://t.co/nP7PSd7B1o

#ecommerce