It’s the busiest time of the year for ecommerce businesses, especially Amazon sellers. Black Friday and Cyber Monday require heavy cash investment for inventory and PPC campaigns. If your Amazon business sells products in highly competitive spaces, the competition can deplete your cash reserves quickly. But as every Amazon seller knows, Cyber Monday is not the finish line. The coming days seem calm on the surface, but it’s just an extension of the frenetic holiday pace. When Monday concludes, you’ll need more inventory and more marketing campaigns to prepare for one last push to close out Q4.
So, where do you find the cash? Here are three reasons why now is the perfect time to secure funding for your Amazon business.
There’s no time to wait for your sales.
With funding for Amazon sellers, you can access cash quickly to stock up on inventory and run seasonal campaigns. Your Black Friday and Cyber Monday sales might cover these costs, but you won’t see that money hit your account right away—and there’s no time to waste. Instead, find an ecommerce funding option to provide a necessary infusion of cash immediately. This way, you can get the funds to continue the Q4 momentum for your Amazon business.
Many Amazon sellers hit all their targets and sell their inventory at the start of the holiday push, but cannot sustain momentum due to cash flow issues. Not only are they leaving revenue on the table, but it hurts their listings. It’s a missed opportunity that carries into the start of Q1. The worst part is that it’s not due to lack of performance—it’s entirely due to cash flow management. With ecommerce funding, you’ll fill those inventory and marketing gaps, and continue to maximize sales through the end of the year.
Position yourself to start next year strong.
We mentioned it briefly already, but Q1 is often a casualty of your Q4 investments and cash crunches. With the right funding offer, you not only get the cash you need now, but also position yourself for success in the New Year. It allows you to maintain strong inventory levels and secure the best PPC campaigns for Q1. This is especially important if you have products that are sold year-round and need to be constantly promoted.
If you’re stuck in the cycle of waiting for sales payouts before you can reinvest, it’s nearly impossible to carry momentum through the end of the holiday season.
Take advantage of lower funding rates.
By using ecommerce funding, you can take advantage of lower rates than traditional bank loans. And with the right funding product, you’ll receive a much more flexible cash runway than credit cards provide. The cost of capital associated with these funds can be much lower than traditional financing options, which will save you money in the long run. They are also more accessible to Amazon sellers than traditional lending products.
Be careful though—research different offerings and be sure to understand the total cost of the funding product. You should also be aware that different ecommerce funding products extend your cash flow by varying amounts. If, for example, a daily cash advance can’t fully support your opportunities for the remainder of the year, there’s not much sense in paying the fee for it.
Best of luck over the next week to Amazon sellers, but remember to keep thinking forward and plan to replenish your cash as quickly as possible. There are plenty more opportunities to finish the year strong and position your business for Q1!