2020 has been a turning point: some businesses surged ahead, while others failed.
What makes an eCommerce store actually succeed — no matter what?
We examined the data, investigated patterns, and have shared these valuable insights with you.
Hop onto our joint webinar with Payoneer as we pool our exclusive data-driven insights and forecasts together to show you how to build and maintain a resilient eCommerce business. We cover everything, from funding to logistics, of a dream store that can weather any storm ahead.
Overcoming Your Toughest eCommerce Cash Flow Challenges
Cash flow is a global challenge to all entrepreneurs.
- 61% of businesses revealed that they have struggled with cash flow
- 42% experienced challenges in the 12 months prior to the report
- 29% of newly established businesses fail because they have run out of cash
Despite these hardships, eCommerce continues to thrive with an estimated potential of over $4.8 trillion to be spent globally on eCommerce platforms by 2021.
Financial challenges faced by online sellers
Challenge #1: The Long Wait for Your Cash
Delays between the point of sale and the marketplace payout of your earnings can cause difficulties to cover inventory, marketing and delivery costs.
Challenge #2: Buying Inventory and Waiting for Cash to Buy More Inventory
A reliable cash flow is crucial for grabbing opportunities, for example – getting more inventory at a discounted bulk price and being prepared ahead for peak seasons.
Solving the Cash Problem
- Analyzing sales channels and optimizing the amount of inventory you buy and sell at any given time. Paying upfront for products that have shorter sales cycles and forecast the best time to experiment with newer products that may have longer sales cycles.
- Budgeting properly – looking at your balance sheet and P&L and making sure that you’ve included every expense (inventory, seller fees, advertising, payroll, office supplies, etc.). Then determine what is a necessary cost, fixed cost, and what you might be able to spend less on.
- External financing – additional working capital can help you cover your cash flow gaps and grow your business.
Payoneer’s Capital Advance
Payoneer’s Capital Advance program offers cash boosts for your business (up to $500,000) based on the performance of your online store.
- Instant funds, with no credit checks or collateral
- A convenient gradual settlement from your future marketplace receivables, while leaving you with cash to maintain your business between payout dates.
- One low, fixed fee with no additional costs, because there’s nothing worse than the surprise fees and hidden costs that can really impact your bottom line.
How to build a resilient fulfillment network
Build in redundancies:
- Diversification is important across your entire business
- Example: Going multi-channel to expand your revenue streams protects you from being at the mercy of any one channel
- Utilize marketplace partners in combination with backups
- Example: Many FBA merchants use Deliverr for FBM to ensure no stock outs
- Ensure nationwide coverage across every channel you sell on
Utilize a unified channel partner for multi-channel coverage
We integrate with all of your online sales channels, exchanging inventory and order data in real-time so you can offer fast shipping everywhere you sell.
Sell from a single pool of inventory with Deliverr to maximize inventory efficiency.