Enhancing Financial Performance: The Crucial Role of Working Capital Management in E- Commerce Retail Sector

Enhancing Financial Performance: The Crucial Role of Working Capital Management in E- Commerce Retail Sector

1.       Shalu (MBA) 2. Dr. Harshit Sinha (Principal)

NIMS UNIVERSITY, JAIPUR

ABSTRACT
The rapid expansion of ecommerce stores has changed the competitive landscape, requiring new ways to maintain financial health. This study examines the critical role of working capital manag ement (WCM) in financial development in the ecommerce retail industry. Implementing WCM i nvolves monitoring existing assets and liabilities to ensure adequate capacity and efficiency. By analyzing key components such as inventory management, accounts receivable, and payroll, this study demonstrates how effectively WCM can increase revenue, reduce operating costs, and incr ease revenue. Case studies of ecommerce companies revealed best practices and the impact of te chnology solutions on WCM. Findings show that companies that maintain effective WCM are ab le to withstand business fluctuations and sustain longterm growth. This article highlights the imp ortance of integrating financial strategies and strategies into business management to improve fin ancial performance in e-commerce.