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Help amazon sellers become more profitable by introducing them to SellerVue, and earn 20% commissions.

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Frequently Asked Questions About SellerVue and ourAffiliate Program.

What is the purpose of Ecommerce Cost Accounting? 

Cost accounting can give your business detailed insight into how your money is being spent. With this information, you can better budget for the future, reduce inefficiencies and increase profitability.

What is the main difference between cost accounting and financial accounting?

Financial accounting is governed by regulators and must comply with the generally accepted accounting principles (GAAP) or International Financial Reporting Standards (IFRS). Cost accounting, however, doesn’t have to abide by these regulations since its used internally. 

Ecommerce Cost Accounting: What It Is And When To Use It?

As a ecommerce seller, you need to have a firm understanding of your cost of goods sold. 

Why? Because this information is key to determine whether you’re making a profit and how profitable a product actually is. This is where ecommerce cost accounting comes in. 

Ecommerce cost accounting revolves around the costs associated with getting and selling your products. In other words, it’s a way to understand the exact Cost Per Unit (CPU) from factory floor to your warehouse floor, and associated Cost of Goods Sold to your customers door.

The Benefits of Cost Accounting

There are many reasons why cost accounting is so important for businesses, especially in ecommerce. Perhaps most importantly, it allows you to make informed decisions about pricing and where to cut costs. 

It also provides valuable insights into where your money is going and can help you identify areas of wasted spending. Additionally, cost accounting can give you a competitive edge by helping you understand your margins and find ways to increase them. Finally, by better understanding your costs, you can make more accurate predictions about cash flow and future profitability.

As you can see, there are many reasons why cost accounting is such an important tool for ecommerce businesses. If you’re not already using this method in your business, now is the time to start!

What Is Ecommerce Cost Accounting?

Ecommerce Cost accounting is a type of managerial accounting that focuses on the Cost of Goods Sold. It assigns per unit costs to products. Through cost accounting, you can further understand where your business is spending its money, how much it earns and where you might be losing money. 

Ecommerce Sellers should use cost accounting internally to improve your business’s profitability and efficiency.

What Are The Elements of Ecommerce Cost Accounting

Accounting is a necessary evil for any business—especially ecommerce businesses. Understanding the different elements of ecommerce cost accounting can help you better manage your finances and make sound decisions about how to use the money you make from your online store.

There are a few key elements of cost accounting, listed below.

Factory Costs
These are costs related to the production or manufacturing of the final/end product.

Inbound Costs
These are costs related to the receiving the final/end product. Essentially these are all the cost described above less the factory costs with the the actual shipping of the product representing the largest expense in the Inbound Cost category.

Selling Costs
These are costs related to the product to the customer.

Ecommerce Cost Accounting vs. Financial Accounting

Ecommerce cost accounting is a type of financial tracking system that helps you keep track of all your Cost of Goods Sold. It’s specifically intended for sellers who have multiple products available on their website and need to track the associated Cost Per Unit. By using cost accounting software, you can gather information about all your landed product costs—and use this data to make better decisions about how to grow your business in the most profitable way possible.

Financial accounting is an important part of any business. Unlike cost accounting, which is designed to help business owners make decisions about how to run their business within the company, financial accounting is designed to help shareholders, lenders, regulators and other parties who don’t have access to your internal information. It takes a business’s financials and presents them in a way that showcases how it’s doing in terms of assets, liabilities and shareholders’ equity. It also provides investors with the information they need to make informed decisions about investing in or loaning money to your company.

Does SellerVue Replace My Current Bookkeeping or Accountant?

At SellerVue, we understand how important it is to optimize your cost of goods sold. That’s why we don’t replace your current accountant or bookkeeper—we work with them so that you get the most out of every penny spent on your inventory and selling fees. 

Our team has decades of experience in analyzing and understanding what goes into a successful cost optimization plan for sellers.

Our approach starts by getting to know each client individually, so we can understand their unique needs and goals when it comes to their cost optimization strategy. From there, our team works with clients to identify areas where they can save money while still maintaining quality standards. We also provide advice on how best to manage your cost of goods sold and keep track of expenses related to purchasing materials and supplies for production. 

Finally, we work with clients on an ongoing basis to ensure that their cost optimization plan remains effective over time as their business grows and changes.

We believe in creating long-term relationships with our clients. We also understand that businesses can have different needs at different stages in their life cycle, which is why we offer tailored solutions depending on where our clients are in their journey towards success.

What does it cost to become an Affiliate?

Nothing! It's free to join.

I have a question about the Partner Program.

We'd love to answer any questions you have about our Partner Program. Please send an email to partner@sellervue.com and someone from our team will be in touch.

Get Started Today

We help ecommerce business keep more of what the earn.

If you're selling products online, you need to know exactly what each product costs to sell. Failing to have an accurate Landed Product Unit Cost will affect EVERY PROFIT METRIC and ultimately leave you with false data. Tracking product costs isn't easy - especially as you grow and getting it wrong can hurt your bottomline. That's why we built SellerVue.

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