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Ecommerce use case

We use numberslides to build an ecommerce financial model
MV
Written by Max Valentine
Updated 6 months ago

Ecommerce is a booming sector - even more so with the global covid outbreak.  In this videos series of eight short videos, we show you how you can build an ecommerce financial model in less than 20 minutes 🔥 (small print-  if you have you assumptions ready to go).  It is really important to keep iterating your model until you have outputs that are realistic, achievable and match your ambition! 

Let's get started.

SECTION 1 - General & Market (1 min)

The first section of the model where you add general and market details

SECTION 2 - Revenue (4 mins)

As an ecommerce business, your sales are driven by the traffic to your platform and the price you pay - see how we build up your traffic and product lists.

SECTION 3 - Team section (3 mins)

It is important to think about the team you need to hit your numbers and to go one stage further how many are inhouse paid up members and how many are freelance (both have advantages and disadvantages).  As an ecommerce store, you should think about your marketing, procurement, web design and development teams.

SECTION 4 - Cost of Goods Sold section (3 mins)

This is your variable costs (costs linked to revenue generation), as an ecommerce business your main variable cost will be the costs of the goods you sell - either to make or buy them in.  Other variable costs could include payment processing and/or sales commissions etc.

Hal

SECTION 5 - Operating costs section (3 mins)

Your business overheads - this is the fixed costs (not linked to revenue) that mean keeping the lights on, keeping the office open etc.  Examples include office space, travel, software subscriptions etc.

SECTION 6 - Capital expenditure section (1 min)

This section we look at the assets that you buy which can by physical (tangible) or non-physical (intangible)

Section 7 - Financing and returns section

If you have an ambitious plan then it most cases this will need funding - in this section we look at the sources of investment and potential investor returns.

Section 8 - Output section

That's it! we got there.  Let's look at the outputs of the model and don't forget, we can always go back and change anything as the market and/or business model changes - Don't forget some of the biggest business successes have come from a pivot!

and there we have it - building an ecommerce model in numberslides without spreadsheets or formulae.

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