Is your e-commerce brand struggling with cash flow? Try these 6 steps to improve cash flow for your e-comm brand.

As the CEO of an e-commerce supplement brand, you wear a lot of hats. You're juggling inventory, managing marketing campaigns, and keeping your customers happy. But amidst the chaos, there’s one thing that can make or break your business: cash flow.

Without strong cash flow, growth stalls, opportunities slip through your fingers, and sleepless nights become the norm. But here’s the good news—managing cash flow doesn’t have to feel overwhelming. By focusing on the right strategies, you can create breathing room in your finances and set the stage for sustainable growth.

Here are six essential strategies that can help you take control of your cash flow and get back to focusing on scaling your business.

1. Get Your Books in Order

First things first: you need accurate financial data. Without it, you’re flying blind. Strong bookkeeping and accounting practices give you the clarity to see where your money is going, spot potential leaks, and make smarter decisions.

Imagine trying to navigate a cross-country road trip without a map or GPS. That’s what running a business without clean books looks like. Poor accounting doesn’t just lead to mistakes—it also makes it harder to identify patterns, like seasonal revenue dips or areas where costs are ballooning.

Quick Wins:

• Use accounting software like QuickBooks or Xero to automate your processes.

• Regularly review your cash flow statement, which shows when money is coming in and going out, and your profit & loss report, which reveals your bottom-line profitability.

• Partner with an accountant or fractional CFO who understands e-commerce (and supplements!) to optimize your margins and uncover hidden opportunities for savings or reinvestment.

This isn’t just about compliance; it’s about giving yourself the tools to make confident, informed decisions that drive growth. This is something we do at Freedom Sun, so if you're interested in learning more, you can book a growth session with us today.

2. Stop Letting Inventory Drain Your Cash

Inventory can be a cash flow killer. Overstocking ties up capital in products that sit on your shelves, while understocking risks losing sales to competitors. Plus, supplements often have expiration dates, which means sitting on too much stock could lead to waste—and wasted money.

Striking the right balance between having enough product to meet demand without overstocking is critical. It’s not just about freeing up cash; it’s also about creating a more efficient operation.

What to Do:

• Use demand forecasting tools to predict sales based on seasonal trends, historical performance, and even emerging industry trends (like a surge in demand for immunity-boosting supplements).

• Implement just-in-time (JIT) inventory practices to avoid tying up cash in unnecessary stock.

• Identify slow sellers and move them quickly through bundling with bestsellers, offering discounts, or running clearance campaigns.

Every dollar stuck in inventory is a dollar you can’t use to grow your business—make sure your inventory is working for you, not against you.

3. Negotiate Like a Pro with Your Suppliers

You’re likely spending a significant portion of your budget on raw materials or finished products. But have you ever revisited your supplier agreements to see if you’re leaving money on the table? Many CEOs don’t, assuming their terms are fixed—but suppliers are often more flexible than you think.

The goal here is to secure better payment terms or lower costs without compromising on quality. Even small changes can have a significant impact on your cash flow.

Pro Tips:

• Ask for extended payment terms, like net-60 instead of net-30, to give yourself more time to generate revenue before paying invoices.

• Consider ordering in bulk for your best-selling products to secure volume discounts—just make sure you’re not overcommitting to inventory you can’t sell quickly.

• Don’t hesitate to shop around or leverage multiple suppliers to negotiate better rates. Sometimes, the mere mention of looking elsewhere can lead to better deals.

Negotiating isn’t just about saving money; it’s about giving yourself breathing room in your budget so you can focus on growth.

4. Build Predictable Revenue with Subscriptions

Want to make cash flow predictable? Turn one-time customers into subscribers. The supplement industry is perfect for subscription models because customers often need regular replenishment. This creates a win-win situation: your customers get the convenience of automatic deliveries, and you get a steady, reliable stream of income.

Ideas to Get Started:

• Create subscription bundles that include complementary products, like pairing protein powder with vitamins or pre-workout supplements.

• Offer discounted subscriptions as a reward for loyalty, such as 10% off for monthly deliveries.

• Use email marketing to highlight the value of your subscription program—think less hassle, consistent supply, and exclusive perks for subscribers.

Subscription revenue isn’t just about cash flow—it’s also about customer retention. The longer customers stay subscribed, the higher their lifetime value (LTV), which strengthens your financial stability.

5. Cut Costs on Customer Acquisition

Let’s talk about marketing. If your ad spend feels like a black hole with little return, it’s time to rethink your customer acquisition strategy. Paid ads are often a necessity in e-commerce, but relying solely on them can quickly drain your cash flow.

How to Adjust:

• Double down on organic marketing channels like SEO, content marketing, and influencer collaborations. These might take longer to show results but can be much more cost-effective in the long run.

• Set up retargeting campaigns to bring back people who have already shown interest in your brand (like website visitors or cart abandoners). Retargeting ads are often cheaper and convert better than cold traffic.

• Create a referral program to turn happy customers into brand ambassadors. Offer discounts or rewards for referrals—it’s a low-cost way to acquire high-quality leads.

By reducing your customer acquisition cost (CAC), you free up cash to reinvest in other areas of your business, like new product development or hiring.

6. Get Smart About Pricing

Pricing isn’t just about covering your costs—it’s a strategic tool for managing cash flow. Small changes in pricing structure can create significant increases in revenue, especially when paired with tactics to boost your average order value (AOV).

Strategies to Try:

• Use tiered pricing to encourage larger purchases, such as offering discounts for orders over a certain amount.

• Introduce premium products with higher margins to upsell your loyal customers. For example, if your base supplement is $29, create a premium version with additional benefits priced at $49.

• Test limited-time offers or scarcity promotions to create urgency and drive immediate sales, especially during slow periods.

Pricing isn’t a “set it and forget it” process. Continuously test and refine to ensure you’re maximizing both revenue and customer satisfaction.

Here’s the Bottom Line

As a busy CEO, you don’t have time for cash flow surprises. By focusing on strong financial practices, efficient inventory management, better supplier negotiations, predictable subscription revenue, leaner marketing costs, and smart pricing, you’ll free up cash to reinvest in your business.

No more guesswork. No more scrambling to cover expenses. Just a clear path to growth and stability.

Ready to take charge of your cash flow? Let’s connect and create a tailored plan that fits your supplement brand’s unique needs.