How Working Capital Can Help Speed Up Your Amazon Sales Cycle with Payoneer
Ever wondered how you can speed up your sales cycle with Amazon? Our friends at Payoneer, the global service that enables millions of businesses and professionals to connect and grow globally through our cross-border payments platform, have proposed the best ways for you to maximise your sales using working capital.
Speed Up Your Amazon Sales Cycle
While you launch and grow your Amazon business, along the way, you may come across some financial challenges and realize that you don’t always have enough cash on hand to manage your store.
Like other entrepreneurs, online sellers need to understand the importance of having enough funds. When running an eCommerce store on Amazon, it’s vital that you have enough resources to purchase more inventory, increase marketing efforts and have enough cash during slow sale periods.
Luckily, with the help of working capital, Amazon sellers like you can quickly and easily take care of all the operations mentioned, by scattering these payments over the course of a few months.
Here’s how capital advance can help you pay for more inventory, boost more marketing initiatives, solve durations of short cash flow, and ultimately help you sell faster and of course, sell more.
Buy More Inventory
As an online seller, ordering inventory for your store can be challenging and unless you’re drop-shipping, you’ll need to purchase your stock in order to sell products. However, if you find yourself without many funds, this could leave you in trouble.
The reality is, the more inventory you own, the more marketplaces you’ll be able to sell on and the more opportunities you have to expand your business. If you want to stay afloat and keep up with the already tight competition, you’ll need a significant amount of inventory to do so. Furthermore, without enough cash, you’ll have trouble paying suppliers or grabbing opportunities to purchase inventory at special prices.
Fortunately, with working capital, you’ll be able to better manage your inventory and avoid the risk of damaging your Amazon ranking, ultimately helping you increase your sales.
Increase Marketing Efforts
Want to step up your advertising game? As an Amazon seller, marketing and advertising costs can be a real pain but working capital can help relieve that pain by allowing you to allocate more budget towards advertising and marketing efforts.
There are over 500 million products sold just on Amazon.com alone, so it’s no surprise your products are not in front of your customer’s eyes enough. With so many sellers on the market, you need to do whatever you can to make sure your store appears on the first few pages of search results. Otherwise, customers may never discover your items, leading to a loss in revenue.
Amazon Sponsored Ads (sponsored products, sponsored brands and sponsored display) allows you to run ads on both search results and product pages. And with capital advance, you’ll be able to pay for those advertising costs, helping you reach a wider audience and boost sales.
Now that you’ve understood that in order to sell quicker and sell more, you need to stock up on inventory and push marketing efforts, here’s how to solve the cash flow issue.
Solve the Issue of Short Cash Flow
Did you know? 82% of small businesses fail due to poor cash flow management and lack of cash. To make sure your Amazon business doesn’t become another statistic, here’s how to solve the cash flow issue.
- Examine sales channels – When you properly analyze your sales channels, you’ll be able to optimize the amount of inventory you buy and sell at any given time. Paying upfront for products that have shorter sales cycles can help speed up cash in, allowing you to estimate the best time to experiment with newer products that may have longer sales cycles.
- Plan ahead of time – Forecasting your cash flow, and budgeting will help you organize your finances and give you peace of mind. Taking a look at your balance sheet and PnL and making sure that you’ve included all expenses (such as inventory, seller fees, advertising, payroll, office supplies, etc.) will help you to determine what is a necessary and fixed cost and what you might be able to spend less on.
- Use external funds – Once you have taken a thorough look at your expenses, you may find that there is a need for external financing.
Speed Up Your Amazon Sales Cycle with Payoneer’s Capital Advance
To help you sell more and sell quicker, Payoneer, a leading cross-border payments platform, can offer working capital to help you grow your business. With Payoneer’s Capital Advance, you can receive working capital funds within minutes and give your business the extra boost it needs with up to $750K instantly along with a one attractive fixed fee and convenient gradual settlement plan, leaving enough funds to manage daily expenses.
You’ll start with Capital Advance Express and if eligible, you’ll get access to Payoneer’s top-tier Grow offers, which are large cash injections for your business.
What are you waiting for? Get the boost your Amazon business needs today!