Working Through an Example Ecommerce Budget for 2023

Part 4 of Setting Your Ecommerce Budget for 2023

This is part of a 5 part series on setting your ecommerce budget for 2023. For an easier to read all-in-one PDF of the entire series, download our Setting Your Ecommerce Budget for 2023 guide.

You can put together a very simple spreadsheet that performs these calculations for you, and then change the gross profit number you input to the spreadsheet to lower numbers to help you build out the three scenarios mentioned in ‘Budgeting Challenges for 2023’.

Let’s work through an example. If your company projects gross profit of $5 million in 2023 and you know your licensing & hosting costs will be $100,000, your starting point would look like the numbers below.

You would then look at each of these numbers and think through your list of projects for 2023 to determine if you want to change the gross profit percentage to decrease or increase your total budget or change the allocation between the different categories.

Once you have your final numbers in the format your company requires for submission to your financial team take the time to also put together a brief narrative summary of how you arrived at these numbers and what this budget will make possible for the company’s growth and success in 2023. Call out any items that you anticipate will increase revenue, decrease costs or increase the value of assets on the company’s balance sheet. These extra efforts will often help you win budget approval faster so you can get back to building and growing a great ecommerce experience for your customers.

Check back for the final post in this series, Managing Your Ecommerce Budget.