Why Cash Will Always Be King (Especially in eCommerce)

You’ve probably heard the phrase a hundred times: “Cash is king.”

In eCommerce, it’s more than a cliché.

Because you can have great products, a killer ad strategy, even strong sales – and still run out of money. Why? Because what matters most isn’t profit on paper, or sales in Shopify. It’s cash in the bank.

Here’s why cash is, and always will be, king:

1. Profit is Theory. Cash is Reality.

You might be “profitable” based on your P&L, but if your cash is tied up in inventory, stuck in slow-paying marketplaces, or burned through on overhead, you’re in trouble.

Cash is what pays staff, orders inventory, and covers ad spend. Not profit. Not projections. Cash.

2. You Can’t Spend Margin Until You Collect It

You sold $50,000 worth of stock? Great. But if your ad platforms took their money yesterday, your 3PL took it today, and your customers won’t actually pay for another 7 days (or worse, Klarna/Afterpay delays it longer)… that’s a cash flow gap.

A strong cash position gives you time, options, and power. A weak one forces desperate decisions.

3. Growth Consumes Cash—Fast

Most eCommerce founders don’t realise this until they feel it:

• More sales = more stock to buy
• More customers = more support, packaging, systems, etc
• More traffic = more upfront ad spend

Every stage of growth pulls cash out of the business before the return comes in. If you’re not managing that cycle tightly, growth will choke you.

4. Investors, Banks & Buyers All Look at Cash First

If you ever want to raise capital, get a loan, or exit, the very first question they’ll ask is:

“Show me your cash flow.”

They care about how resilient your business is – not just your revenue chart. Because revenue is a promise. Cash is proof.

How a CFO Helps You Stay Cash-Strong

A fractional CFO does more than review your statements. They help you:

• Forecast future cash needs (so you’re never caught off guard)
• Shorten the cash conversion cycle
• Plan inventory buys strategically
• Model different growth scenarios based on actual liquidity

Final Word

Cash is the fuel of your business.
Run out – even with strong sales – and the engine dies.

So yes, revenue is great. Profit is important. But cash will always be king.
The smartest founders know this, and they manage it like their business depends on it.