1. Conduct a cash flow analysis and forecast
The first step to improving your eCommerce cash flow is to make an accurate forecast of your liquidity. In other words, forecast the cash inflows and outflows your business will have in the coming months, depending on your orders, from your accounts receivables and accounts payable, and other revenues and expenses expected in a specific time frame.
In general, the forecast is done on a monthly basis, although it can also be done on a weekly, quarterly or annual basis, depending on the needs of each business. This analysis will allow you to know how much money your eCommerce will have in the next months and what actions can be taken to improve your cash flow.
However, you should keep in mind that cash forecasting is based on an estimate of future cash inflows and outflows, so you should adjust it periodically for real utility, following your historical data and basing it on present and future needs.
When the time to make the analysis and forecast for the coming month, take into account whether your business is highly seasonal. For example, an eCommerce specialising in Christmas decorations or if you are expecting a sales peak in the next months, with Black Friday for example.