For companies whose main business is cross-border e-commerce business, if only the costs directly related to products are considered in cost statistics and the operating costs at the company level are ignored, they will often find that their net profit is not as expected. many.

Sometimes even after deducting this part of the fee, the flow of funds does not appear to be so abundant.

So, how to manage this part of the cost reasonably?

What are the operating costs?

Excluding expenses directly related to cross-border e-commerce business, the operating costs involved in cross-border e-commerce companies mainly include office space rent, water and electricity fees, employee wages and benefits, team commissions, office supplies costs, software and hardware equipment costs, etc.

They are actually the existence that many of us are accustomed to, and they are also expenses that are easily ignored in cross-border e-commerce profit statistics.

Generally speaking, the calculation method of the company's net profit is: the company's monthly net profit = Amazon's monthly business profit – employee's monthly salary – social security – site monthly rent – water and electricity costs – monthly office expenses – software and hardware apportioned to each month's costs – Other miscellaneous fees.

For the above operating costs, it is easier to calculate the total amount, which is simpler than other hidden costs of Amazon, but what is more challenging for cross-border bosses and finance is how to allocate these costs reasonably.

How to better allocate operating costs?

The company-level operating cost is actually directly related to the input and output of personnel, so it is a more reasonable way to allocate the cost to each employee.

Of course, it is also possible to consider allocating the expenses to specific stores and products according to the proportion or designation, because all the expenses are ultimately to promote sales.

In addition to the above allocation methods, the cost of this part of the company level can also be counted separately as a monthly fixed expenditure, and the long-term trend and the proportion of cost occupied can be combined to evaluate whether the operating cost is reasonable.

Leading Star ERP Solution

In the apportionment and management of hidden expenses such as office costs, Leadstar ERP also matches corresponding solutions to help sellers calculate profits more accurately.

1) Support import and apportion management of other expenses

In addition to the costs of the Amazon platform, in Lingxing ERP, sellers are supported to input and distribute other expenses such as reimbursement expenses, off-site promotion expenses, and personnel expenses according to certain rules.

Leadstar ERP supports the import of store and product dimensions. Store-dimension costs can be apportioned on a daily or monthly basis in terms of the proportion of sales and sales; the cost of product dimensions can be apportioned to ASIN and MSKU. In the above, the allocation method is more flexible.

After the seller enters the operating costs that need to be apportioned, the apportionment results will be reflected in the profit report and performance report, which can help the seller to accurately calculate the net profit of each employee, the net profit of each product, and the net profit of each store. to the extreme.

2) Improve the benefit ratio of human efficiency and operating costs

While thinking about how to allocate operating costs, it is also worth thinking about how to achieve higher benefits on the basis of existing operating costs such as personnel costs.

At this point, the overall system of Lingxing ERP provides systematic solutions for cross-border sellers.

The first is to open up all aspects of cross-border business, including procurement, warehousing, delivery, logistics, product launch, after-sales customer service, financial management, etc. The previous work and benefits of each post are automatically It is integrated on the leading ERP, the boss can see the results at a glance, and the employees can also obtain the required cross-departmental information in time.

The second is to provide more efficient tools and management methods for each link, such as automated rules for orders, time-sharing strategies for advertisements, automatic tagging and replies to customer service emails, requesting comments, and automatically forming profit reports, etc., all of which help sellers From the management role to the executive role, the repetitive work is greatly reduced, and more time is spent on the thinking and adjustment of the operation strategy, and finally the efficiency is improved.

Each hidden cost may be insignificant to cross-border sellers, but from the perspective of longer-term corporate compliance operations and refined product operation management, they are all parts that cannot be ignored. From now on, taking them into account and counting them well will also drive the business forward.

Whether it is in the management of hidden costs or the improvement of personnel efficiency, Lingxing ERP provides systematic solutions for cross-border sellers, and uses years of experience in the field of cross-border e-commerce to help sellers obtain higher benefits. More accurate profit accounting is worthy of the trust of every cross-border seller.