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How Ecommerce Entrepreneurs Can Make the Best Financial Decisions?

Starting a new business can come with a myriad of complications and unforeseen costs. Most of your startup capital will go towards paying employees. And then there’s the expense of bringing in experts. pegged the average salary of a chief financial officer (CFO) in the U.S. as $433,088 per year in 2023. That’s a large salary to ensure a return on investment. For every problem, there is a solution. For example, to save on startup funds, you could opt for CFO advisory services.

There are many more solutions-based mechanisms available to you. In this article, we’ll discuss the best financial decisions eCommerce entrepreneurs can make.

Opting for CFO Advisory Services

As mentioned, hiring a CFO as part of your executive team can absorb a big chunk of your capital. Taking the fractional CFO path makes better business sense. Utilizing a CFO advisory service cuts down on your overhead costs and excess tax payments.

Unfortunately, many business owners don’t have the know-how to make sound decisions, says digital and accounting company Fully Accountable. The duties of a CFO encompass financial reporting and financial planning.

Also known as virtual CFOs, fractional CFOs are becoming popular choices for fledgling businesses. When hiring a CFO, hire someone with the right qualifications and several years of experience.

Forbes writer Melissa Houston iterates that an excellent CFO ensures a company’s financial foundation is in good order. A seasoned pro will also help manage growth.

Leveraging Financial Technology

There’s no mistaking that eCommerce has overtaken the traditional way of shopping. In this digital age, you don’t need to leave your home to purchase a TV. ECommerce platforms are booming. If the latest stats are anything to go by, there are no signs of slowing down.

According to Statista, global online shopping conversion rates showed significant growth in Asia and the U.S.A. It’s also predicted that eCommerce will handle 95% of consumer transactions by 2040.

That’s a big bite of the pie. So, how can eCommerce entrepreneurs leverage fintech to streamline business?

Faster, Easier Payment Processes

Platforms like PayPal have smoothly integrated AI into their operations. PayPal CEO and president Alex Chriss said their mission is to shake up global commerce.

In January, it announced a few products it plans to pilot and bring to market this year. For example, the PayPal checkout experience streamlines customer and seller transactions. The result is more conversions.

Embedded Finance

In simple terms, embedded finance integrates banking and other financial services into non-financial apps. Companies give the option of third-party loans at check-out. Look at it as another version of buy now, pay later.

Investopedia reported it’s a win-win situation. Consumers get their banking services wherever they are. Companies earn more customer loyalty and increase revenue streams.

Mastering eCommerce Financing

Sometimes, a company’s payments outweigh its revenue. It can result in operating problems for obvious reasons. This is when they enter an eCommerce financing agreement. The business pays the lender directly through its online platform.

These eCommerce financing solutions can cover short-term expenses and fuel growth by increasing marketing activity, says a digital marketplace, enabling business advancement.

Yale University mentions five different options for eCommerce businesses.


This uses cash reserves to grow your business. The cons? It can adversely affect your cash flow, especially if you’re an online business. The pros? Getting funding via this method is easy and flexible.

Venture Capital

Venture capitalists invest in businesses with sound business models. Yes, they can give you a large cash injection, but it could come with conditions: loss of equity and pressure to grow.


Many businesses have taken to crowdfunding in recent years. The upside? It’s effective in raising funds. The downside? If your business is already established, it might not be a good option in seeking growth capital.

Angel Investors

This relationship is based on mutual trust. Normally, an angel investor would invest in eCommerce startups in the pre-revenue phase. Like a unicorn, they are hard to find. And, they might charge equity rates for raising the funds.

Revenue-Based Financing

RBF is a funding method where companies receive capital in exchange for future revenue. A portion of your revenue is shared with the RBF until the agreed amount is repaid. This practice has proven the most popular among growing eCommerce businesses.

To wrap up this article, there are no hard and fast rules to making your eCommerce business sustainable. However,  investing in sound solutions from the start lays a foundation for good financial decisions. These smart choices can help you build a thriving venture, regardless of the competition you encounter.