Parker

Remember when every serious online business needed an engineering team or a CTO? Those days are long gone. Thanks to platforms like Shopify, the technical barriers to entry in e-commerce have all but disappeared. But what fascinates me is that while you don't need engineering teams anymore, you still need a solid finance team to build a successful brand. Why? Because financial management in e-commerce is still incredibly complex. As a founder, you're constantly grappling with questions like: • Am I actually making a profit? • Does scaling this new product make economic sense? • How do my customer acquisition costs stack up against competitors? These aren't just academic exercises. They're the difference between scaling to eight figures and shutting down shop. Most passionate product creators don't have a finance background. And many can't afford (or don't need) a full-time CFO. That's why we're building towards a future where your CFO would be AI-powered. Imagine having CFO-level insights without the CFO price tag: • Clear cash flow visibility • Holistic view of business health • Granular profitability analysis • Industry-wide benchmarking We're not saying businesses should fire their CFOs tomorrow. Instead, we're aiming to empower more businesses to succeed by democratizing financial expertise. Just as Shopify transformed the technical side of e-commerce, we believe AI will revolutionize the financial side. What do you think? Is AI the future of e-commerce finance? Or will human CFOs always be necessary?

Parker's long-term vision in 72 characters: Shopify gave brands a dev team Parker gives brands a finance team

Why settle for average when you can bank smarter? Parker’s integrated platform gives you: - Up to 4.5% APY - No transaction fees - Low rates - Millions in FDIC insurance All without the hassle 💡💳

Ever wonder why your P&L looks great, but your bank account doesn't? We dive deep into the cash flow vs. profitability paradox in our latest blog. Discover why ecommerce brands can be profitable on paper, yet cash-strapped in reality. Learn more here: https://lnkd.in/gGHiunYR

Looking for financial tools that truly support e-commerce growth? Parker’s unique features are built for businesses like yours! 📈🚀

I'm seeing something that breaks my heart. Good, fast-growing e-commerce brands with solid margins are sinking. Why? Merchant cash advances (MCAs). MCAs sound great on the surface: "We'll give you way more money than a traditional loan! And you just pay us back with a small cut of your daily revenue." But here's what they don't tell you: 1. That "small cut" is often 20-35% of your DAILY revenue. 2. The actual interest rates are multiples of a normal loan. 3. It comes straight off the top before you pay for inventory, ads, or anything else. I see so many solid brands with MCA loans taking 30%+ of their revenue. Every. Single. Day. They can't grow. They can barely operate. Here's the math: - 25-35% to the MCA - 25-30% for inventory - 20-25% for marketing What's left? Nothing. You're barely breaking even on a good day. And if sales dip? You're screwed. I know that the appeal—fast money is tempting. Especially when traditional banks don't get e-commerce. But MCAs are often a trap. They're being pushed hard by PayPal, Shopify Capital, and others. Because they're insanely profitable... for THEM. Not you. If you're exploring MCA loans, please: 1. Run the numbers carefully 2. Read ALL the fine print 3. Talk to a financial advisor who gets e-commerce There are good funding options out there. But you have to be smart about it.

The secret to e-commerce profitability: Keep COGS at 30% - Negotiate with suppliers - Diversify manufacturers - Optimize shipping and logistics - Establish efficient supply chain early Lower COGS = higher margins. Small improvements have outsized impact on profitability.

Are your financials showing the true value of your business? Learn why understanding the difference between cash and accrual P&Ls is so important for your business growth!

What does the perfect ecommerce P&L look like? Our Head of Underwriting breaks down the ideal expense ratios: ✔️ 30% COGS ✔️ 30% Marketing ✔️ 30% Fulfillment ✔️ 10% Owner comp Is your P&L aligned? Find out here: https://lnkd.in/euXAhk6e

I just got off a call with a $1.3M credit limit client who is absolutely crushing it: - $25M ARR. - 10% net margins. - Growing 20-25% YoY. Here are 3 questions he asked about the data patterns we're seeing in Parker's 1000+ brand dataset: 1. Where do we see most businesses going wrong? What causes the most instability? - Not having a firm grasp on unit economics. - No clear path to profitability. - Growth at all cost mentality. Excessive debt is another quick way to sink your business. 2. What do people usually include in COGS? People are all over the place with their COGS. There's really no set standard. Also worth noting that this client "over includes" things in their COGs, which our risk team loves. 3. How quickly should ecom brands recover their customer acquisition costs (CAC)? The key is to aim for the shortest payback period possible. This varies, but here's what we're seeing: - Best performers: 3-6 months - Average: 6-12 months - Struggling: 12+ months Faster CAC recovery means better cash flow, more fuel for growth, and reduced risk in a volatile market. Aim for that 3-6 month range if possible. Whenever we get questions like these from our customers, I realize how much un-tapped data we're sitting on. That's why one of our main content initiatives this quarter is to analyze more customer data and share valuable insights, benchmarks, and patterns we uncover with the broader ecom community. Ecom owners and operators on LinkedIn — help me out: What's your biggest financial challenge right now? Drop it in the comments - let's learn from each other.