With this hack, online retailers have a better overview of their finances

Online retailers beware! With this financial hack, you'll be one step ahead of the competition.

With this hack, online retailers have a better overview of their finances

Business Insider: Establishing simple payment methods for customers in online retail that also relieve store operators? With this trick, that’s no longer a problem.

What matters in e-commerce

Online shopping has become an important part of our lives. The hottest pair of shoes, the latest smartphone or a little something for their loved ones – more and more people are shifting their shopping from stationary to digital retail. Especially now in times of Corona. According to a recent study, almost 30 percent of respondents store online at least once a month. Just as many even once a week.

A boon for all online retailers? Yes and no. Because in the net, the really big fish decide where things go. With their technologies, they have a lasting impact on users’ buying behavior and dominate the market. To keep up, smaller stores must always be vigilant. One of the most important aspects of shopping for both parties: the financial settlement. Why it has special significance and how online retailers can score here.

Everything revolves around finances

What is important for a successful customer journey in e-commerce? To speed! Customers who buy online do so mainly because it is more convenient and faster. Of course, online stores should then also fulfill these attributes in their entirety. The page must load smoothly, registration must take just a few clicks, and the checkout process must not end in a jumble of forms. If all of this is successful, the final factor of any shopping experience is payment.

Regardless of the sums involved, users must feel secure and be able to select the right payment method without complications. With too many hurdles, many buyers are not afraid to simply switch to another platform that sells similar or even identical products.

Easy payment – for both sides

Payment processing should be closely monitored by online merchants. And in the best case scenario, the process is not only straightforward for customers, but also does not create unnecessary work in the background.

What to watch out for:

  • Accounts Receivable Management: All payment transactions must be monitored and recorded in accounts receivable.
  • Receivables management: It must be clear which receivables are still outstanding and when which claims must be asserted.
  • Security: The collection and processing of customer data must always meet the highest security standards.
  • Internationality if required: If the store operates internationally, different tax rates and conversion rates must be taken into account. Sounds complicated? It is. Many online retailers therefore do not collect this data on their own, but get experts on their side who can keep an eye on everything without any problems.

The magic word: Payment Clearing

As the term implies, payment clearing is primarily about untangling the thicket of transactions. Online merchants who use the service provided by outsourcing service provider nexnet can clearly see which payments are received and when, and whether all details are correct. All transactions of the most common payment service providers – whether fintech or traditional bank – are recorded down to the individual transaction level.

When merchants and their stores look across the pond, all conversion rates are processed for them on a daily basis and debited with the appropriate tax rates.

Thanks to payment clearing, the monthly statement is also created by nexnet and transferred to the general ledger – so the data is not only error-free, but also transferred automatically.

All advantages at a glance:

  • Payment monitoring at individual transaction level
  • Certified accounting for the complete end customer business for all PSP used
  • Audited monthly financial statements (SOX Compliance)
  • Voucher management for value and goods vouchers
  • Internationally applicable
  • Integrated receivables management and collection
  • Experience from 20 years in the mass transaction business
  • Industry-independent (e-commerce, digital goods, mobility, retail)

The hack for secure accounting

Few online retailers also think directly about finances when fulfilling their business dream. Yet they are the pillars of any successful business. If the operators of online stores manage to satisfy their customers with simple and secure processes, there is usually an equally beneficial system for themselves behind it.

In order to avoid falling into a trap in the jungle of options, nexnet provides support with payment clearing. This gives dealers more time to focus on the core of their business.