A practical breakdown of why many e-commerce sellers finish Q4 with strong sales but weak cash flow. This piece explains how tariffs reshaped margin math, why storage fees and returns distort year-end profitability, and how comparison-based financial analysis reveals what products truly make money. It also explores inventory aging, landed costs, and turnover ratios—and why sellers who track these metrics enter 2026 with more control, liquidity, and resilience.
Key Takeaways
- Sales growth can hide cash flow problems. Profitability must be evaluated beyond revenue spikes.
- Tariffs forced margin recalculations. Sellers had to rethink pricing, sourcing, and category strategies.
- Storage fees triple in Q4. Improper allocation can turn profitable months into losses.
- Returns distort financial reporting. Assigning returns to order dates provides a clearer picture of Q4.
- Inventory age is a cash signal. Slow-moving stock drains liquidity and limits flexibility.
- Landed cost accuracy matters. Shipping, tariffs, and overhead must be included to see true margins.
- Comparison reporting reveals the truth. Promotions, ads, and events should be judged by net profit, not sales.
- Winning sellers know their break-even instantly. Clear books enable confident decisions in volatile markets.
