Cash Flow Management for eCommerce Sellers: Marketplace Payouts, Payment Terms, and Odoo Accounting

Cash flow is the leading cause of eCommerce business failure, not profitability. A business can be profitable on paper while running out of cash because marketplace payouts, supplier payments, and operational costs operate on different timelines.

Understanding and managing these timing gaps is essential for sustainable growth. Odoo's accounting module, combined with marketplace settlement data, gives you the visibility needed to stay cash-positive.

The eCommerce Cash Flow Problem

Traditional retail has a simple cash cycle: customer pays → you receive money immediately. eCommerce introduces multiple delays:

Marketplace Payout Timelines

| Marketplace | Typical Payout Schedule | Holdback Risk | |---|---|---| | Amazon | 14-day rolling cycle | 7-day reserve for new sellers | | eBay | Daily or weekly (Managed Payments) | Rolling reserves possible | | Shopify (Payments) | 2-3 business days | Chargebacks withheld | | Walmart | 14-day cycle | Performance-based reserves | | Shopee | 3-7 days after delivery confirmation | COD delays longer | | Noon | 14-30 days | Country-specific schedules |

This means you might ship products today, pay for inventory 30 days ago, and not receive payment for another 14 days. That gap requires working capital.

The Cash Conversion Cycle

For eCommerce businesses, the cash conversion cycle looks like:

1. Day 0 — Pay supplier for inventory
2. Day 15-45 — Inventory arrives and is received into warehouse
3. Day 45-90 — Product sells (average days to sell varies by category)
4. Day 50-104 — Marketplace confirms delivery and begins payout cycle
5. Day 64-118 — Cash received from marketplace

The gap between Day 0 (cash out) and Day 64-118 (cash in) is your cash conversion cycle. For many eCommerce businesses, this is 60-120 days.

Marketplace Settlement Reconciliation

Why Reconciliation is Critical

Marketplace payouts are not straightforward deposits. Each payout includes:

• Product revenue (what the customer paid)
• Marketplace fees (referral fees, fulfillment fees, closing fees)
• Shipping credits and charges
• Promotional discounts (funded by you or the marketplace)
• Returns and refunds (deducted from future payouts)
• Advertising costs (PPC spend deducted at source)
• Tax collected (passed through or withheld)
• Reserve adjustments (held back for anticipated returns)

A single Amazon settlement can contain thousands of line items across these categories.

Odoo Settlement Import

The ECOSIRE marketplace modules import settlement data directly into Odoo:

1. Settlement file retrieved from marketplace API
2. Line items parsed and categorized by type
3. Revenue recognized against original sales orders
4. Fees mapped to appropriate expense accounts
5. Bank deposit matched to settlement total
6. Discrepancies flagged for investigation

This automated reconciliation replaces hours of spreadsheet work per marketplace per payout cycle.

Setting Up Odoo for Cash Flow Visibility

Chart of Accounts Structure

Organize your chart of accounts to reflect eCommerce-specific cash flows:

Revenue Accounts:

• Sales Revenue — Amazon
• Sales Revenue — eBay
• Sales Revenue — Shopify
• Sales Revenue — Walmart
• Sales Revenue — Other Marketplaces

Expense Accounts (Marketplace Fees):

• Amazon Referral Fees
• Amazon FBA Fees
• eBay Final Value Fees
• Shipping Costs — Outbound
• Shipping Costs — Returns
• Marketplace Advertising Spend

Asset Accounts:

• Marketplace Receivables — Amazon
• Marketplace Receivables — eBay
• Marketplace Receivables — Other
• Inventory in Transit

Cash Flow Forecasting in Odoo

Build a rolling 13-week cash flow forecast using Odoo data:

Cash Inflows:

• Pending marketplace settlements (from imported orders not yet paid out)
• Expected sales based on historical trends
• Scheduled customer payments (B2B/wholesale invoices)

Cash Outflows:

• Open purchase orders (supplier payments due)
• Payroll schedule
• Rent and fixed costs
• Advertising budgets
• Tax payments due
• Marketplace subscription fees

Automated Alerts

Configure Odoo alerts for cash flow risk:

• Low balance warning — Alert when bank balance drops below threshold
• Large payout delay — Flag if expected settlement is more than 3 days late
• High reserve holdback — Alert if marketplace reserves exceed normal percentage
• Supplier payment due — Remind before supplier payment deadlines

Managing Growth Without Running Out of Cash

Inventory Investment Optimization

Inventory is the largest cash consumer for eCommerce businesses. Optimize with Odoo:

• ABC analysis — Focus cash on A-items (high revenue, fast turn); minimize C-items
• Reorder point tuning — Reduce safety stock to minimum levels while maintaining service levels
• Supplier payment terms — Negotiate Net-30 or Net-60 to reduce cash cycle
• Dropship strategy — Use dropshipping for slow-moving products to eliminate inventory investment

Seasonal Cash Planning

eCommerce is seasonal. Plan cash reserves for:

| Period | Cash Need | Why | |---|---|---| | Aug-Sep | High | Pre-purchase inventory for Q4 holiday season | | Oct-Nov | Very High | Peak inventory + increased ad spend | | Dec | Moderate | Sales revenue offsets; payout delays still apply | | Jan-Feb | High | Returns processing + lower revenue + payouts from Dec sales |

Financing Options

When cash flow timing creates gaps:

• Marketplace lending — Amazon Lending, eBay Working Capital, Shopify Capital
• Revenue-based financing — Based on historical marketplace sales data
• Supplier credit — Extended payment terms from reliable suppliers
• Line of credit — Traditional banking with marketplace revenue as collateral

Key Metrics to Monitor

Track these in your Odoo dashboard:

| Metric | Target | Formula | |---|---|---| | Cash Conversion Cycle | Under 60 days | DIO + DSO - DPO | | Inventory Turnover | >6x/year | COGS / Average Inventory | | Current Ratio | >1.5 | Current Assets / Current Liabilities | | Marketplace Receivable Days | Under 21 days | Pending settlements / daily revenue | | Operating Cash Flow | Positive | Net cash from operations |

Where:

• DIO = Days Inventory Outstanding
• DSO = Days Sales Outstanding
• DPO = Days Payable Outstanding

Common Cash Flow Mistakes

1. Confusing revenue with cash — A $100K sales month means nothing if $70K is locked in marketplace reserves
2. Ignoring marketplace fees in forecasting — Fees consume 15-30% of gross revenue
3. Over-investing in inventory — Tying up cash in 6+ months of inventory kills flexibility
4. Not tracking by channel — One profitable channel can subsidize another that is cash-negative
5. Growing faster than cash supports — Revenue growth without proportional cash flow creates crises

Next Steps

Cash flow visibility is the foundation of sustainable eCommerce growth. With Odoo's accounting module and automated marketplace settlement reconciliation, you can move from reactive cash management to proactive forecasting. Explore our Odoo accounting services or contact us for a cash flow optimization consultation.