Problems with Cash Flow Just Won’t Stop Right Now

Photo by Alexander Schimmeck on Unsplash

If you’re feeling like your ecommerce business is making money but not keeping money, you’re not alone. Cash flow is the #1 pain point for a lot of U.S.-based online sellers right now — and it’s not just about spending too much. 

Here’s what’s draining your cash (and what to watch out for): 

 🚢 1. Tariff Changes Are Driving Up Landed Costs 

• The end of the $800 de minimis import exemption means you’re now paying duties on every product you bring into the U.S. — even small shipments from China. 

• Sellers are seeing higher customs fees, longer clearance times, and surprise charges from their freight forwarders — all eating into cash reserves. 

• Even if you're not importing directly, your suppliers’ increased costs are trickling down into your pricing. 

🧾 Cash flow hit: More money tied up in inventory and import fees, less flexibility to react to changes. 

 🧾 2. Bigger Upfront Inventory Investments 

• With supply chain uncertainty still lingering, many sellers are ordering larger inventory batches to avoid stockouts — which means more cash tied up in inventory. 

• If you're using a 3PL or fulfillment service, you're also dealing with higher storage fees due to overflow stock. 

📦 Cash flow hit: You’re spending cash months before you see the revenue. 

📣 3. Marketing Spend is High — and Less Predictable 

• Customer acquisition costs are at an all-time high — with many sellers seeing $25–$35 CACs across Meta and Google. 

• Ads that used to convert in 3 days now take a week — or don’t convert at all. That’s a cash burn with no guarantee of ROI. 

📉 Cash flow hit: Your ad spend is outpacing your sales cycle — making you cash-poor even when you're growing revenue. 

💳 4. Buy Now, Pay Later Causes Longer Pay Cycles from Customers 

• Offering payment options like Klarna, Afterpay, or Shop Pay Installments can help drive conversions — but many sellers don’t realize the lag in payouts or the transaction fees involved. 

• Some marketplaces are also holding funds longer due to fraud concerns or policy updates. 

🕒 Cash flow hit: You’re fronting the cost of inventory, shipping, and fulfillment — but waiting days (or weeks) for the money to hit your account. 

🏦 5. Debt is Coming Due (and It’s Expensive) 

• Sellers who took out working capital loans in 2021–2023 (especially revenue-based financing or high-interest Shopify/PayPal loans) are now seeing those daily repayments squeezing cash. 

• As interest rates remain elevated, refinancing isn’t always a better deal. 

📉 Cash flow hit: You’re paying back yesterday’s growth with today’s dollars — even if sales have slowed. 

🧾 6. Sales Tax and Quarterly Payments Are Creeping Up 

• Multi-state sales tax obligations are harder to track — and if you’re not setting aside cash, you might find yourself caught short on remittance day. 

• Q1 estimated taxes are due, and many sellers were unprepared for their 2024 tax bill — leaving them dipping into operating cash. 

💵 Cash flow hit: Surprise tax payments reduce your runway for inventory, ads, and payroll. 

✅ What You Can Do to Stay Cash-Positive 

1. Tighten your cash conversion cycle — speed up how fast you turn inventory into cash. 

2. Reforecast your marketing ROI monthly — and pause what isn’t converting. 

3. Know your breakeven point by SKU — especially with new tariffs and fulfillment fees. 

4. Separate out tax savings — and automate it if needed. 

5. Build a 13-week cash flow forecast — so you're not guessing at what’s coming. 

Want help figuring out where your cash is going and how to fix it? I work with ecommerce sellers to take control of their numbers and make smarter, more profitable decisions. 

Let’s talk if you’re ready to get your cash flow under control.