Online selling is one of the best source of income for people, but there are several factors which we need to know.
One of it is accounts, You need to track your inventory, Sale, return and refund.
It becomes very difficult for seller to keep a track on how the sales is going and what is the profit he is making out of the business. With the below calculation yes you can know the perfect amount which your are making as your profit.
After lots of experiment and calculation, Below I will show you how.
Now you purchased 10 sarees worth 210 each so the total purchase is 2100
Now when this saree is sold what you need to do is simple
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Please be sure that each websites accounts should be maintained separately.
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In the accounts book you need to mention as below
Date of selling -- Quantity -- Amount -- CR/DR
28/3/2016 10 2100 DR
You can see I have mentioned the purchase amount here on selling yes why to check what is your exact profit amount.
Now the next step you see you have 3 sarees which has been returned that is RTO so what you will do here is
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In the accounts book you need to mention as below
Date of selling -- Quantity -- Amount -- CR/DR
28/3/2016 10 2100 DR
30/3/2016 3 630 CR
Why credit as you received the saree back so now you can sell the saree again and earn.
Now similarly you will receive orders regularly and what you need to do is simple, add on the entries, Now after a few days like you receive transfer from the company of your sale amount,
I can say here your minimum expectation for transfer amount should be 1470 which will cover your purchase amount, if you receive more amount from it that means you are making profit, Or else you are incurring loss in your business.
Similarly when you have to go for personal shipping you can make it sure how this thing will more below is the entry
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In the accounts book you need to mention as below
Date of selling -- Quantity -- Amount -- CR/DR -- Remark
28/3/2016 10 2100 DR Sold
28/3/2016 1 60 DR Shipping Cost
30/3/2016 3 630 CR Return
15/4/2016 1570 CR Transfer Received
Now you see that you have earned a profit of 100 by selling 7 sarees, well this can help you to judge that how to increase your profit margin or whether to decrease your profit margin,
I hope the article was helpful for you people, Do let us know if you have any questions related to the article.
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