We learn how to build a simple startup financial model for an eCommerce business. Excel template included.
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In this video I show you how to setup an ecommerce financial model, and how to think about these startups.
We breakdown the marketing and customer acquisition cost, unit economics and profitability of the product, orders, revenue, and a simple income statement.
Sections:
0:20 unit economics breakdown
4:32 marketing & orders projection (using CAC)
6:51 revenue & COGS projection
By the end of this video, you will understand how to build startup financial models for eCommerce businesses – I guarantee it!
If you have questions – leave a comment below and I’ll try to help. Cheers!
#financialmodel #startups #ecommerce
Watch more new videos about Excel Office | Synthesized by Mindovermetal English
Any questions? Let me know here in the comments!
Hey Eric, great video. Wanted to ask when you're adding 10k every month to advertising, are you taking a cumulative of 10k every month, or are you assuming that the company will increase adspent by 10k every month?
Hei Eric, thanks for the great content, i still cannot believe you give us all this for free !! What if i have different products so different manufactoring costs ? Should i use Average Cost Method or Special Identification Method to calculate my COG per order ? Or what other method/formula
Hey Eric — I'm so stoked to find your channel! Your tutorials are going to help me manage the e-commerce division of my business immensely. I have a question: in this simple e-commerce model it looks like 100% of sales are attributed to advertising. But many of my customers find my site and purchase through organic/non-paid traffic. How should I include organics sales in Net revenue and only apply ad spend to sales from advertising?
Where to add Rent and other Operating Cost
Hi Eric so I input OPEX so Net Income would be the Post Advertising GP minus OPEX or GP -OPEX? Can I move Advertising and place in OPEX?
Can I use this model for an online clothing boutique ?
Hi Eric, thanks for another great video!
One question, when you forecast orders here, do you mean new customers or orders in total from existing and new customers? Because blended CAC means how much you spend (organically/free + paid ads) to acquire a new customer. So I assume the orders forecasted are only by new customers? Correct?
thanks for the amazing content!!
Hi, in case we have multiple products (how can we calculate it)
Love the anti-credit card sentiment 😄 Great video Eric!
What is Fulfillment cost?
in this excel file, Can I include Administration cost from Board of Director, Sale Manager, etc?.
Superb explanation. What if we have an online store that sells gift items. A customer might buy 1 high end item from the store only one time but could be a loyal customer buying something like a candle regularly. Lets say the running cost of the online store per month is $3000. How can we setup a financial model that will help us calculate how many new gift items should we launch online and at what price per month to cover the running cost of the online store and to attract promiscuous consumers.
Average order value= total order value/ total quantity order?. Example : in the sep/2021, 1000 sales order is sold, total value is 1 million usd.
Amazing Eric! Thanks
Thanks, where can I download Excel file?
Thank yo sooo much for this tutoriaaal!!!! Quite an intricate topic but easy with you, matee!!