Cash Conversion Cycle: Bridging the Gap Between Profitability & Cash Flow

When an eCommerce business starts making more money, it costs more money to run. Consider an apparel business that sells athleisure. A pair of joggers might retail on the company’s website for $100 and cost them $40 to manufacture and ship. The gross margin on the joggers is $60 (60%), leaving that amount for all of the non-unit expenses like corporate …

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