This is a guest post from Victoria Sullivan. Victoria is a Marketing Manager at Payability. She has over eight years of social media, copywriting and marketing experience. Prior to joining the Payability team, Victoria developed social media content and strategies for top technology brands such as Skype and Samsung. She holds a degree in Advertising from Syracuse University’s S.I. Newhouse School of Public Communications. She can often be found in a yoga class or working on her fashion blog.
Running an ecommerce business can be incredibly rewarding — but it’s also very risky. After all, you’re competing against millions of other sellers and, in some cases, the marketplace itself. Not only that, consumer demand, seller policies and so much more could change at the drop of a hat. If you’re not prepared, your business could suffer the consequences.
How to reduce eCommerce business risk
The good news is, there are ways to reduce risk in your business so you can continue selling (and growing) regardless of such changes or other external factors. Here are three of the most common:
Sell on Multiple Marketplaces
You’ve heard the saying: don’t put all your eggs in one basket. Never has this been more true in business — and especially eCommerce. In fact, many businesses diversify to minimize risk should there be an economic downturn. Not only that, diversifying can actually help your business grow. Let’s take a look…
When it comes to your eCommerce business, selling on only one marketplace means you are relying on — and trusting — that nothing will happen to that marketplace. But something could.
Say, for example, you sell a niche product only on Amazon but then the eCommerce giant decides to restrict that product from third party sellers. Or, worse case and highly unlikely, what if they decide to terminate their third party platform altogether.
If you spread your business across multiple marketplaces, you can be more nimble should something like this happen. Further, when you expand to multiple marketplaces, you simultaneously expand your reach to potential customers.
And if you think that selling across multiple marketplaces would make fulfillment difficult to track, don’t worry — you can centralize your inventory and streamline fulfillment so no orders slip through the cracks. Read more in our next tip…
Leave Fulfillment to the Experts
How you fulfill orders could make or break your business. For example, if you offer fast, free shipping, customers are likely to buy from your listing over a competitor who doesn’t. On the flip side, if you don’t offer a great shipping option for your customers or if you fail to live up to the one you do have (i.e. you send something later than promised), you risk getting negative feedback or having your account temporarily suspended — neither of which is good for your business.
It goes without saying that fast, free shipping will set your business apart. Not only that, as your business grows, keeping up with fulfillment can be a full-time job in itself. You’ll have to manage orders, pack and ship inventory, keep up with stock levels and more — all while juggling the rest of your business operations. This is why you may want to consider outsourcing fulfillment to a service like Deliverr.
Deliverr offers fast and affordable fulfillment services to sellers on Walmart, eBay, Amazon and Shopify, and allows you to add their respective shipping badges to your listings. So you’ll get competitive edge, be able to streamline fulfillment, and still delight customers in the process.
Accelerate Cash Flow
Cash flow is key to minimizing risk in your business. Surprises happen all the time, many of which require cash to overcome or leverage. For example, if demand suddenly spikes and you need to make a rush inventory order to avoid a stockout, you’ll need cash on hand to actually fund the order. Or if your supplier announces a flash sale on inventory that, if leveraged, would allow you to increase your margins, you’ll need cash to take advantage of the sale.
Whatever the case may be, accelerating cash flow will allow you to better manage and reduce risk so you can continue running — and growing — your business efficiently. But as it goes in ecommerce, cash flow is far from a reality. Payout delays often lead to cash flow challenges, inconsistent sales and staggered growth. But not for long thanks to services like Payability.
Payability is a financing company for marketplace sellers that offers daily cash flow options so you never have to risk stocking out or losing growth opportunities. In fact, sellers that use Payability see increased growth in their businesses — many growing 2.5x faster than their competitors.
So how does Payability work? They offer a variety of solutions depending on your specific needs:
- Payability Instant Advance: Payability buys a certain amount of your future receivables up front and at a discount, giving you a large lump sum of cash you can draw from daily/as you need.
- Payability Instant Access: Payability pays you your marketplace income one business day after making a sale, giving you daily deposits.
- Payability Seller Card: Access your income 24/7/365, including on weekends and holidays.
Not only are their solutions designed with you in mind, their process is as well. With a risk-free application process that looks at sales performance and account health (not credit), you could get approved and receive your funds as soon as tomorrow.
To learn more about Payability and to hear from marketplace sellers that have achieved accelerated growth from Instant Advance, Instant Access and the Seller Card, visit http://go.payability.com/Deliverr and receive a $200 sign on bonus.