Fractional FD for Fast-Growing E-Commerce

Scale profitably. Protect cash. Build investor-grade reporting — without hiring a full-time Finance Director.

Fast growth in e-commerce is exhilarating, but it’s also where finance mistakes get expensive. One month you’re celebrating record sales; the next you’re juggling stock-outs, ad spend volatility, returns spikes, marketplace payouts, and working-capital pressure. Add international VAT, multi-currency settlements, and warehouse costs — and suddenly the numbers look “busy” rather than clear.

A Fractional Finance Director (FD) gives you senior financial leadership part-time, tailored to your stage of growth. FD Capital connects e-commerce founders and leadership teams with experienced FDs who understand online retail economics, performance marketing, and the operational realities of scaling a modern commerce business.

If you’re looking for a strategic finance partner who can improve profitability, strengthen cash flow, professionalise reporting, and support fundraising or exit planning, a Fractional FD may be the most practical next step.

Why fast-growing e-commerce businesses hire a Fractional FD

E-commerce finance is different. Traditional finance leaders can be brilliant, but without real e-commerce pattern recognition they can misread what matters most — contribution margin vs. revenue, payback periods, cohort performance, stock turn, and the compounding impact of marketing efficiency.

A Fractional FD brings:

• Strategic financial leadership without a full-time overhead.
• Hands-on improvement to forecasting, reporting, controls, and decision support.
• E-commerce-specific commercial insight across channels, margins, and working capital.
• Confidence for investors, lenders, and boards through clear KPIs and disciplined financial management.

Whether you’re DTC, marketplace-led, omnichannel, subscription, or hybrid, the right Fractional FD helps you make better decisions faster — and avoid the common “scale-up traps”.

Common pain points we solve (and what they really mean)

If any of these feel familiar, you’re not alone. They’re typical symptoms of a business that has outgrown founder-led finance or bookkeeper-only reporting.

1) Revenue is rising, but cash is tight

Growth can be cash-hungry. Inventory lead times, ad spend, warehousing, and returns mean you can be profitable on paper while cash disappears.

A Fractional FD will:

• Build a 13-week cash flow forecast that becomes your weekly operating rhythm.
• Map working-capital drivers (stock purchases, payment terms, settlement delays, VAT, returns).
• Set cash controls and approval flows so spending aligns to priorities.

2) Marketing spend feels like a black box

When paid media scales, the financial questions change. “Did we grow?” becomes “Did we grow profitably, and is it repeatable?”

A Fractional FD helps you:

• Agree the right profitability lens (contribution margin, CM2/CM3, variable vs. fixed costs).
• Track CAC, LTV, payback, blended vs. channel ROAS, and cohort retention.
• Decide when to push spend, when to pause, and what “good” looks like by channel.

3) You don’t trust the numbers quickly enough

If month-end takes too long, or reporting changes each time you look at it, leadership decisions happen on intuition rather than insight.

A Fractional FD will:

• Tighten the month-end close and create consistent management accounts.
• Create dashboards with e-commerce KPIs that leaders actually use.
• Improve data quality between platforms (Shopify, Amazon, payment gateways, ERP, 3PL, subscriptions).

4) Stock is either too high or too low

Inventory is a strategic asset and a financial risk. A single mis-forecast can lock cash for months.

A Fractional FD supports:

• Stock modelling based on sales velocity, lead times, and seasonality.
• Stock turn and sell-through analysis by SKU/category.
• Decisions on promotions, clearance, and reorder points.

5) VAT, compliance, and international expansion feel overwhelming

Scaling into new geographies adds complexity — VAT, duties, marketplace rules, and multi-currency exposures.

A Fractional FD will:

• Ensure compliance processes are in place and responsibilities are clear.
• Create a finance roadmap for new territories so growth doesn’t create hidden liabilities.

6) Fundraising conversations are getting real

Investors want more than a story. They want numbers that explain why growth is capital-efficient and sustainable.

A Fractional FD will:

• Build an investor-ready model and narrative.
• Produce a data pack and KPI set that stands up to scrutiny.
• Support due diligence, Q&A, and negotiation.

What a Fractional FD actually does in an e-commerce scale-up

A Finance Director’s role is to make sure the company’s financial decisions are aligned with strategy — and that the business has the visibility and controls to execute.

In fast-growing e-commerce, the Fractional FD becomes your finance “co-pilot” across five themes:

1) Profitability and unit economics

Revenue is only the start. The FD will help you understand and optimise the economic engine.

Typical outputs include:

• A clear contribution margin framework (and agreement on cost classification).
• Gross margin analysis by product, channel, customer type, and geography.
• Returns, shipping, and payment costs visibility — and actions to reduce leakage.
• Pricing and promotion governance so discounts don’t destroy margin.

2) Cash flow and working capital

Many e-commerce businesses fail from cash stress, not lack of demand.

A Fractional FD delivers:

• Rolling cash forecasts and cash dashboards.
• Stock funding plans (including seasonality scenarios).
• Supplier terms and payment scheduling.
• Options analysis: invoice finance, revolving credit, trade finance, or equity.

3) Forecasting and planning

When you scale, you need a plan that can change without breaking.

A Fractional FD will:

• Introduce light-weight FP&A processes appropriate for your size.
• Create driver-based forecasts (orders, AOV, conversion rate, repeat rate, CAC).
• Build scenarios (“Base / Stretch / Downside”) and link them to actions.

4) Systems, processes, and controls

Good controls are not bureaucracy — they are a growth enabler.

A Fractional FD can:

• Improve your finance stack (Xero/QuickBooks, A2X, inventory tools, ERP, BI).
• Design purchase approvals, payment runs, and reconciliations.
• Reduce reliance on spreadsheets and create single sources of truth.

5) Leadership, board, and investor support

A strong FD improves how leadership makes decisions.

They will:

• Present financial performance in a way that founders and teams can act on.
• Support board meetings and investor updates.
• Mentor internal finance staff and build capability.

The FD Capital approach

FD Capital is a specialist finance recruitment and advisory boutique. We focus on senior finance roles and understand the difference between a generic finance leader and a commercially-minded e-commerce FD.

When you engage us for Fractional FD support, our aim is simple: match you with an FD who fits your stage, model, and pace — and can deliver measurable impact quickly.

How we match you

We look beyond CVs. In e-commerce, the “right” FD depends on what is driving growth and where risk sits.

We consider:

• Your channel mix (DTC, marketplaces, wholesale, omnichannel).
• Your fulfilment model (in-house, 3PL, dropship, international warehouses).
• Your data stack and reporting maturity.
• Your growth constraints (cash, margin, operations, tech, people).
• Your goals over the next 6–18 months (profitability, expansion, fundraising, exit).

Engagement models

Fractional does not mean “light touch”. It means right-sized commitment.

Common patterns include:

• 1–2 days per week during scale-up, fundraising, or transformation.
• 2–4 days per month for oversight, board support, and KPI cadence.
• Short, intensive projects (forecasting rebuild, cash turnaround, fundraising prep).

The best structure is the one that gives you the leadership you need without unnecessary cost.

What you can expect in the first 30–60 days

A strong Fractional FD creates momentum early. While each business is different, most engagements follow a familiar shape.

Days 1–10: Understand the engine

• Review current management accounts, cash position, and close process.
• Map the business model: channels, margins, fulfilment, returns, and cost base.
• Diagnose the biggest risks (cash, stock, margin, compliance, reporting).
• Agree priorities with the CEO and leadership team.

Days 10–30: Build clarity and control

• Implement or refresh a 13-week cash forecast.
• Define KPI reporting and contribution margin structure.
• Improve visibility on marketing efficiency and unit economics.
• Identify “quick wins” on margin leakage and cost control.

Days 30–60: Put a scalable finance rhythm in place

• Introduce a planning cadence (weekly cash, monthly performance, quarterly forecast).
• Strengthen processes: approvals, reconciliations, supplier terms, stock planning.
• Support hiring decisions (finance manager, analyst, bookkeeper) if needed.
• Start building the investor/lender pack if fundraising is on the horizon.

The goal is not to create paperwork. The goal is to create decision-grade numbers and a finance function that can keep up with growth.

Key e-commerce metrics your Fractional FD will focus on

Every business has its own KPI set, but fast-growing e-commerce typically needs visibility across four layers.

Commercial performance

• Orders, revenue, AOV, conversion rate
• Repeat purchase rate, subscription churn (if applicable)
• Customer cohorts and retention

Unit economics

• Gross margin by product/channel
• Contribution margin and variable cost structure
• Returns rate and returns cost
• Shipping cost per order and packaging costs

Marketing efficiency

• CAC and blended CAC
• LTV and payback period
• Channel ROAS and incrementality assumptions
• Budget vs. performance by channel/campaign

Cash and working capital

• Stock cover and stock turn
• Cash conversion cycle
• Settlement timing (marketplaces, gateways)
• VAT liabilities and timing

A Fractional FD helps you choose the metrics that drive decisions — and ensures your team trusts them.

Who we work with

Our Fractional FD service is a strong fit for:

• Founder-led e-commerce brands moving from “scrappy growth” to disciplined scaling.
• Multi-channel retailers where DTC, marketplaces, wholesale, and international sales create complexity.
• **PE-backed or VC