by Rachel Wehrman and Maggie Varn
The 2022 holiday season is rapidly approaching. Although consumer spending is expected to increase during this last quarter of the year, challenges such as supply chain delays and the effects of inflation will still be in play. Proactive planning can help e-commerce retailers keep costs under control and ensure a successful end of the year. As you plan for this season, consider these tips for your retail sales strategy.
- Margin Check
Be mindful of your product margins. Do you know the true margin on each of your products or product categories? It is important to be mindful of the balancing act between promotions for higher volume sales and maintaining a healthy level of profit.
- Demand Planning
Do you have enough inventory in stock? Have you thoughtfully forecasted which items to have on hand and ordered those within the appropriate lead times?
- Excess Inventory
What can you get moving? The holiday season is a wonderful time to analyze which inventory is "slow-moving" and increase the incentives to sell those products, turning that asset into cash.
- Cash Flow Planning
It is important to consider your cash position as you move into the fourth quarter and beyond. While this season is exceptionally busy, revenues are not predicted to be as high as the holiday seasons in 2020 and 2021. How does this affect your business, and most importantly, your bank account?
- Tax Planning
Know where your business has an obligation to remit sales tax pre- and post-holiday season. Be proactive in investigating where you have nexus and how you are tracking according to each state's regulations. With record sales during the holidays, you may find yourself with nexus in more states than the previous quarter.
Our e-commerce team can help navigate these issues and many others. For more information, contact our team.
The information provided in this communication is of a general nature and should not be considered professional advice. You should not act upon the information provided without obtaining specific professional advice. The information above is subject to change.
“Elliott Davis" is the brand name under which Elliott Davis, LLC (doing business in North Carolina and D.C. as Elliott Davis, PLLC) and Elliott Davis Advisory, LLC and its subsidiary entities provide professional services. Elliott Davis, LLC and Elliott Davis Advisory, LLC and its subsidiary entities practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations and professional standards. Elliott Davis, LLC is a licensed independent CPA firm that provides attest services to its customers. Elliott Davis Advisory, LLC and its subsidiary entities provide tax and business consulting services to their customers. Elliott Davis Advisory, LLC and its subsidiary entities are not licensed CPA firms. The entities falling under the Elliott Davis brand are each individual firms that are separate legal and independently owned entities and are not responsible or liable for the services and/or products provided by any other entity providing services and/or products under the Elliott Davis brand. Our use of the terms “our firm” and “we” and “us” and terms of similar import, denote the alternative practice structure conducted by Elliott Davis, LLC and Elliott Davis Advisory, LLC.
