Here’s How Your Ecommerce Business Expenses Can Be Reduced

eCommerce has picked up over the last two years, during a period when many businesses were forced to shut down. Today, more and more people are getting into having their own business set up online. Aside from providing better control, it’s also an avenue to explore passions that don’t necessarily align with the industry one ends up in.

Just like any other business, however, eCommerce takes a whole lot of time and money. The necessary capital is meant for can’t-do-without expenses for running said business such as:

  • Inventory
  • Processing fees
  • Rent
  • Subscription changes

All of that is the kind of money that can make a difference in the bottom line. While they’re unavoidable, they can either be negotiated or brought down considerably.

It’s Possible to Save Money in eCommerce

Managing the expenses of a business properly can help with freeing up capital. It’s also great for cash flow to be better optimized. The business will then be able to:

  • Focus on expansion
  • Have more cash on hand for future initiatives
  • Hire new employees
  • Invest more money into advertising and marketing
  • Pay off debt
  • Upgrade technology

Read on to learn more about how the expenses of your eCommerce business can be reduced:

Be on Top of Your Inventory

A great way to bring down operational costs for eCommerce is to keep tabs on inventory. This doesn’t just involve being aware of what’s available and what’s not. It requires taking a closer look, especially through the lens of supply vs. demand. 

The last thing you want is to end up with plenty of products that will end up costing more in storage over time than selling for profit within a reasonable timeframe. Get rid of excess merchandise; consider seasonal deals, discounts, or even coupons. 

Promos do the dual job of clearing inventory and bringing in new customers. Items that don’t seem to be going anywhere can be taken off your hands when paired with products that fare much better in terms of sales. Another route is to make them a “freebie” for products more likely to actually get picked up by customers.


Businesses can save a lot in terms of time and money through outsourcing. It’s basically the same idea as buying a machine to do automated work, except of course, this is for tasks that need actual real-time human intervention. Aside from operating costs, purchase and maintenance of needed software and hardware can be passed on to a third-party.

Revisit Your Payment Processing Fees

There is a cut from each order placed on your website called payment processing fees. So an online store with many sales will have a pretty high payment processing fee in total. It’s possible to discuss these costs and possibly negotiate for something lower. This is something not enough people take advantage of, but you certainly should for prime cost-cutting.

Look into the assessment fee, mark-up fee, the interchange, and the transaction processing fee. 


eCommerce businesses are more popular than ever. That said, it requires a lot of funds when it comes to rent, processing fees, and more. Reduce eCommerce expenses by re-negotiating payment processing fees, cutting inventory costs, and outsourcing processes.

Need help with income tax preparation in Rochester, NY for your eCommerce business? Reach out to Bianchi & Associates! We’ve been serving Rochester and the surrounding areas in NY since 1945.

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