E-commerce Ecosystem Financial Accounting

E-commerce is a rapidly growing sector as consumers shift their spending habits to digital platforms. The pandemic further accelerated this trend as consumers got used to a digital first shopping experience and enjoyed the convenience of shopping anytime, anywhere. However, for brands, merchants and sellers, the digital space is as challenging as the physical one. Profitability and margins are driven by ever-complex supply chain issues, platform fees and platform commission. Therefore, a good understanding of financial frameworks and metrics is key to every business intending to retail digitally.

In this module, participants will first understand how the financial model of an e-commerce business works before diving further into various accounting and financial concepts. Thereafter, they will advance their skillset by calculating different ratios which will be used for comparison benchmarking.

At the end of the 2-day module, participants will be able to:
• Gain a high-level understanding of Financial Accounting in the areas of Profit and Loss Statement, Balance Sheet and Cash Flow Statement
• Build their first operating budget
• Understand and appreciate key digital commerce metrics such as Gross Merchandise Volume (GMV), Profit Contribution 1 (PC1) and PC2
• Calculate profitability margins
• Compare and contrast their financial numbers with industry benchmarks

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