eCommerce brands are scaling faster than ever, but many are missing one critical piece: financial clarity.
It’s easy to get caught up in revenue growth and ignore what really matters: profit, cash flow, and long-term strategy.
Here’s where most eCommerce businesses are leaking profit, and what you can do to fix it.
1. Chasing Sales Instead of Profit
Top-line revenue looks impressive, but without margin control, it’s just noise.
If your cost structure is off, higher sales simply increase the size of your problem.
What to do:
Track your gross profit per product weekly
Understand all your costs: freight, fulfilment, merchant fees, returns
Shift focus to net profit per order, not just revenue per month
2. No Clear View of CAC vs LTV
If you’re not tracking Customer Acquisition Cost (CAC) against Lifetime Value (LTV), you’re flying blind.
Growth isn’t sustainable if every new customer costs you more than they’re worth.
What to do:
Calculate your true CAC by platform
Understand your LTV over 3, 6, and 12-month windows
Aim for an LTV to CAC ratio of at least 3 to 1 for healthy growth
3. Messy Financials = Messy Decisions
Many eCommerce businesses operate with outdated, manual bookkeeping or no structure at all.
Without clean data, your financial decisions are based on guesswork.
What to do:
Implement cloud-based bookkeeping like Xero with A2X or Shopify integrations
Automate bank rules and reconciliations
Work with an accountant who understands eCommerce metrics, not just compliance
4. No Cash Flow Forecasting
You can be profitable on paper and still run out of cash.
Between tax, inventory, ad spend, and supplier payments, timing is everything.
What to do:
Use a rolling 12-week cash flow forecast
Build tax and GST provisions into your weekly cash planning
Plan stock purchases in advance to avoid seasonal cash crunches
5. Outdated or Risky Business Structure
A brand doing 10k a month can operate from a personal ABN.
But once you’re scaling, the wrong structure can cost you in tax, liability, or both.
What to do:
Review your business structure annually as part of tax planning
Consider separating IP, operations, and trading risk
Plan for future growth such as investment, licensing, or exit
The bottom line
Running a successful eCommerce business takes more than great products and strong marketing.
Without financial visibility and strategic planning, it’s easy to grow the business and still feel like you’re falling behind.
Need a partner who speaks both eCommerce and accounting?
Book a free consultation with the New Wave team today. We work with fast-growing brands to tighten financial control, boost profitability, and build a business that scales with confidence.
