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How the Amazon Currency Converter Reels Your Business In and Holds It Back

With cross-border shopping set to hit $4 trillion by 2027, the global foreign exchange market now worth a staggering $2.4 quadrillion (yes, that’s an actual number! 😲), who can blame Amazon for using its Currency Converter to swoop in on such a massive opportunity?

Let’s dive into the details of the ACCS and uncover whether using it means you’re settling for less in your Amazon business.

Looking for an Amazon Currency Converter that won’t bleed your company dry? Discover how our Digital Wallet keeps cross-border payments simple and affordable. 

Amazon Currency Converter: What We’ll Cover

  • The Full Scoop on Amazon’s Currency Converter for Sellers
  • What’s the Amazon Currency Converter for Sellers and How Does It Work?
  • The Highs and Lows of Amazon Currency Conversion
  • 3 Hidden Ways Amazon’s Currency Converter is Hurting Your Growth
  • How to Choose a Currency Exchange Service that Works for Your Business (Not Against It!)
  • Don’t Be Afraid to Dodge Money-Sucking Currency Converters

The Full Scoop on Amazon’s Currency Converter for Sellers

Before the ACCS launched, receiving and changing currencies across territories was far from simple.

Amazon UK sellers had to open a bank account in the EU if they wished to operate in the Eurozone, they’d receive the funds in euros in Amazon Central and would then have to select an external provider to change their euros to British pounds. 🙄

Consequently, sellers’ profits were being eaten alive by both Amazon and whichever bank or currency exchange took a cut of the transaction.

This setup may have been a minor inconvenience for sellers residing in the Eurozone, but it caused substantial legal and financial problems further afield.

Something had to change — Amazon introduced its in-house currency conversion solution to make the process less admin intensive and more stress-free.

Or at least, that’s what we’d hoped would happen.

Tired of the Amazon Currency Converter demolishing your profits? Reclaim your cash with a seamless Digital Wallet.

What’s the Amazon Currency Converter and How Does It Work? 

Noticing increasing demand for international selling, Amazon jumped into fulfilling the need for business currency exchange with its solution, the Amazon Currency Converter for Sellers (ACCS). The ACCS service enables you to quickly switch your earnings into another currency and direct it to a bank account of your choice.

The Amazon Currency Converter for Sellers uses a volume-based scale for its fee structure called Volume Based Fees (VBF).

VBF charges you by the number of sales you’ve finalized over the past 12 months, called the Total Processed Volume (TPV).

Amazon has structured its currency conversion to reward best sellers by discounting fees as the sales volume increases. In other words, as your TPV increases, your fees decrease.

But there’s a catch. You won’t know the exact deal you’ll get until you head to the view exchange rate button on the payment summary page in your Sellers Central account.

Even more worryingly, the figure you see may differ from other providers’ rates because:

  • Amazon doesn’t give you wholesale exchange rates. They set their own, and there’s nothing you can do to influence it no matter how much you sell.
  • Amazon, like most providers, doesn’t offer the interbank rate, which is the fairest rate in the foreign exchange market and is used by the big banks in their transactions. However, Amazon is also notorious for shaving down more than a fair amount of the returned currency.

The ACCS fees start at a more palatable rate but hike up to eye-watering amounts.

Here’s a snippet of the Amazon Currency Converter for Sellers:

  • Tier 1: 0.75% fee for revenue equal to or over $10 million 
  • Tier 2: 1.00% fee for revenue equal to or over $1 million
  • Tier 3: 1.25% fee for revenue equal to or over $500,000
  • Tiers 4-6: 1.50% fee for revenue equal to or under $100,000

To put these figures into context, imagine you open an Amazon store and, with pure grit and sacrifice, get your revenue to $90,000. Amazon would take off $1,350 just for providing an automated service. Plus, there’s nothing to stop your bank from throwing their fees into the mix. Before you know it, charges are coming at your store from all angles. Not ideal!

The Highs and Lows of Amazon Currency Conversion 

It would be unfair and inaccurate to say the Amazon Currency Converter for Sellers is all bad — the ACCS comes with some tempting and even valuable perks.

However, some of the downsides may make you think twice about signing up for your business.

Here are a few pros and cons of the ACCS you should know about:

The Highs of the Amazon Currency Converter for Sellers 😄

  • Painless currency exchange across territories: ACCS offers a quick and convenient way to manage payouts. No more fussing with multiple bank accounts in different territories.
  • Seamless funds disbursements: Receiving cash from the countries you trade in becomes as smooth as butter. All it takes is a few clicks for funds to land in your seller’s account in your chosen currency.
  • Save time and energy:  The Amazon Currency Converter for Sellers gives you precious time to funnel into more critical tasks like marketing and sales.

The Lows of the Amazon Currency Converter for Sellers 😔

  • Steep fees: At first glance, the ACCS’ highest fees may not seem like much — but when you consider some foreign exchange providers don’t charge a fee and have fair exchange rates, you may think twice about signing up.
  • Ever-changing exchange rates are a pain: It’s impossible to know how much money you’ll make from foreign transactions, even though you have a set selling price and know your margins. A bad exchange rate can make a profitable product a no-go, flushing all your hard work and money down the toilet. 🚽
  • ACCS is a money-hungry monster disguised as a gift: While Amazon isn’t a bank, its ACCS service certainly looks and feels like one. The ACCS’s main purpose is to make money for Amazon under the guise of serving sellers. The uncertainty isn’t ideal, and sellers have little to no recourse once the transaction goes through.

3 Hidden Ways Amazon’s Currency Converter Is Hurting Your Growth

With these drawbacks comes the ultimate consequence: stunted growth.

Over time growth setbacks can prevent you from taking the calculated risks necessary to help your business excel, like taking on new territories and launching production variations.

Let’s explore some ways Amazon Currency Converter stops you from living your best eCommerce life:

1.   The ACCS siphons the main resource you need to grow: capital 

Sticking with the example we discussed earlier, £1,350 might not seem like much — but it’s enough to test a new product, start and optimize PPC campaigns, and engage in external marketing initiatives like influencer shoutouts. Giving this cash to Amazon can leave you with a painful opportunity cost that harms your margins and profits.

2.  Amazon gets even more of your money for nothing 

Amazon already charges you a subscription and referral fees for selling on their platform — which you can justify because you’re paying for access to their audience — but why should they get an extra 1.5% of your cash for a simple service? 👎🏼

3. The ACCS is inconspicuously risky 

The Amazon Currency Converter for Sellers has a sneaky clause in its terms and conditions:

“When using Amazon Currency Converter for Sellers, you bear the risk, if any, that the exchange rate at the time of sale of your products on the Amazon Site, or at the time when any refund, reimbursement, fee, or cost is incurred, differs from the Estimated Exchange Rate and/or the Applicable Exchange Rate.”

This means if you get a refund through your store for $21, but only get back $18.50 when you put it through the ACCS, Amazon won’t give you the difference. Ouch! The same logic applies to your Amazon sales, which can be a costly expense over time.

How to Choose a Currency Exchange Service that Works for Your Business 

When it comes to currency conversion, your choices boil down to three options:

  1. Accept Amazon’s eye-watering fees and fluctuating rates.
  2. Turn to traditional banks whose charges are sky-high, leaving you with some of the worst rates on the market.
  3. Find an excellent external Payment Service Provider (PSP).

We’ll hazard a guess and say that the third option sounds like the most appealing and feasible solution.

Amazon isn’t going to step up and give you the best rates anytime soon. You’ll have to go on the currency exchange treasure hunt alone. Here’s how to take the pain out of that experience.

The right PSP can be your trusted partner, allowing you to make power moves around the world without throwing resources away. 🙌

To give you the best footing, ensure your PSP is:

  • A multi-currency account: Your PSP should enable you to house various currencies in one account.
  • Equipped with transacting capabilities: The cross-border account from your PSP should let you send and receive funds.
  • Reasonably priced: Your PSP exchange rates shouldn’t make you want to run for the hills. Ensure their pricing is affordable and fair. To preserve your funds, try to find a PSP that doesn’t apply any charges.
  • Transparent and cut straight to the chase: The company should share its fees, exchange rate, and current interbank rate with you. No one wants costly surprises.

Dodge Money-Sucking Currency Converters 

If you aren’t budget-conscious, you have excellent margins, and you don’t mind Amazon taking yet another slice of your earnings, Amazon’s Currency Converter for Sellers is probably for you.

But it’s more likely you don’t fall into this category, especially if you want to grow your Amazon store.

Your options? Head to the digital streets to find an All-In-One Payments Platform & Global Collections Account as you take on the world.

Don’t let fear of the unknown thrust you into the arms of greedy banks or PSPs (or even back to Amazon). Take sufficient time to assess your business’s foreign exchange needs. Research the going PSP rates (the best don’t charge a fee), and keep a close eye on the inter-bank rate for the best deals.

And finally, don’t allow Amazon’s Currency Conversion fees to get in the way of progress. Choose to preserve your margins, profits, and time, by hunting down the best currency converter for your store today.

Need a reliable Currency Converter for your Amazon store? Cut straight to the chase with our Digital Wallet. 

What We Learned this Ecommerce Holiday Season: And How to Adjust for 2022

Whether your store has been around for decades or you’re closing off your first holiday season selling online, one thing’s for sure the current holiday market is unlike anything you’ve seen before. 

Not only is ecommerce growth finally slowing down from the initial Covid boost, but consumer buying behavior is shifting rapidly to cope with supply chain problems — the likes of which we’ve never seen before.

Ecommerce giants like Amazon and Shopify missed their Q3 targets despite achieving 46% year-on-year growth. Shoppers also took to the streets earlier than usual, with 61% of those surveyed by the National Retail Foundation saying they had already started buying gifts and 28% actually completing their holiday purchases when asked in November 2021.

So, you’re probably wondering:

“What are some lessons we can take from this one-of-a-kind holiday season? And how can it shape our strategy going forwards?”

We’re glad you asked. In this post, we’ll dive into the key takeaways from 2021’s rocky holiday ecommerce performance. We’ll also share some tips and tricks to help you adjust to the road ahead.

The scoop on a rocky holiday season

  • Why was the 2021 holiday season so darn unpredictable?
  • 5 major shifts this holiday season (and how to stay ahead of them next year)
  • Rock the ecommerce holiday season like a total boss 😎

Did supply chain problems take you by surprise? Get the right working capital and stay ready with your inventory.

Why was the 2021 holiday season so darn unpredictable?

How did you feel leaving this ecommerce holiday season? Relieved? Excited? Anxious? 

If you’re thinking all of the above, welcome to the club. These are common emotions felt by ecommerce entrepreneurs in busy seasons like Q4. 

Only, this year the final quarter looked and felt completely different

Let’s take a look at some reasons why 2021’s ecommerce holiday season stood out from the rest.

COVID-19 disruptions plague global supply chain (yes, still)

Despite being nearly two years into the pandemic, problems created by COVID-19 are still causing significant challenges for ecommerce stores. 

From battling for manufacturing space to items sitting at ports for months as overwhelmed customs offices struggle to process goods — the pandemic has hit the global supply chain from end to end. And it all came to a head this holiday season.

Rising material, labor costs, and shortages cause prices to soar… and margins to slip 💸

Political moves like Brexit and massive workforce trends like “The Great Resignation” have not only led to shortages in staff and land transportation, but have also created a steep rise in labour and material costs. 

For example, truck drivers in the UK are commanding high rates for their services with some scooping a 40% pay rise

These costs add up and brands are left with the tough decision to either soak up the extra charges and lose margin, or pass on the costs to customers and potentially lose sales.

The freight industry creates a battle of the financially fittest

You don’t have to look far to notice how chaotic shipping times have impacted the availability of goods. 

Even giant supermarkets have had to find creative ways to mask their bare shelves. The soaring shipping costs have meant brands with deep pockets get first dibs on the limited space — for a premium, of course.

5 major shifts this holiday season (and how to stay ahead of them next year)

Clearly, it’s been a rocky year. But despite navigating uncharted territories, you’ve made it through to the other side. Nice work! 🎉 

To ensure your next ecommerce holiday season is a huge success, it’s important to learn lessons from the past and create a plan to dodge any future potholes in the road. 

Let’s explore some of the key shifts and learnings from this Q4, plus tips to get and stay ahead next year.

Consumer spending is on the up before key holidays

One exciting change ecommerce businesses have experienced during 2021’s Q4 is shoppers are buying more online.

However, consumers are opting to buy goods before key holidays like Black Friday and Cyber Monday, even choosing to forgo the infamous discounts if it means they can get their products on time. 

These changes in purchase times give ecommerce businesses the chance to scale faster instead of waiting for key holidays. Shoppers spent a jaw-dropping $109.8 billion from November 1st to 29th. More specifically, Black Friday sales fell by 1.3% from $9 billion in 2020 to $8.9 billion in 2021.

How to prepare your store for increased buying activity:

  • Create and monitor sales forecasts to understand the demand for your products. Use the information to inform your initial purchase and restocking decisions. 📈
  • Use pre-orders and early buyer discounts to capture early sales, then funnel the cash generated into production for the orders and other stock purchases.
  • Always have a plan B for securing stock like getting goods on consignment from other brands or buying locally. 
  • Consider offering discounts to shoppers on their current or future orders in exchange for a longer wait to receive their order. This workaround can help buy your store time without decreasing customer happiness.
  • Be transparent and keep shoppers updated on your stock availability. Set up notifications on your product pages, provide information on how long it takes to restock and delivery time estimates.

Optimization across devices is growing in importance

Gone are the days where shoppers bought only from desktops. 

Modern shoppers shop on the go. Device optimization has a direct impact on customer satisfaction and we’ve seen device shopping diversification increase even more during the holidays in 2021. 

Of the $109 billion sales secured from November 1st to 29th, $63 billion were pulled in from desktops and other devices while $46 billion came from mobile

The desktop conversion rate even hit 6.4% and 3.4% on mobile on November 29th.

How to prep your store for device optimization

  • Optimize your website for desktop, mobile, and tablet, using heatmaps to determine how people use your sales channels and what features work best for a quick and easy shopping experience.
  • Ask shoppers what they love and loathe about shopping on your site from different devices and use their feedback to tweak your designs.
  • Stay committed to a seamless shopping experience on any device. Make device optimization an ongoing task in your business. Hire conversion rate optimization and user experience experts to implement changes that boost sales and customer satisfaction.
  • Take notes from winning brands in industries different from yours. Assess how these businesses are optimizing their sales channels by device type and look for ways to weave these features and strategies into your store.

Inventory inaccuracy pushed some consumers in-store

Supply chain issues have rocked inventory availability and faced with frustrating stockouts, some shoppers have taken matters into their own hands by taking their product hunts in store.

If they don’t get inventory on track, ecommerce sellers could lose out on sales to their brick-and-mortar competitors. In fact, nearly 47% of US consumers intended to shop in-store this holiday season, an 8% jump from the winter holidays in 2020. Not only that, 65% of consumers wanted to shop in-store to reclaim old-school benefits of brick-and-mortar shopping like being able to view, touch, and experience products before buying.

How to prepare for customers drifting towards the high street:

 

  • Improve your product imagery and videos to help shoppers better understand your product quality and features.
  • Don’t forget to reassure customers of your inventory availability and cut-off times so they can shop confidently in your store.
  • Host holiday pop-ups and showcase your holiday gifts to give shoppers the chance to touch and see your collection in the flesh.
  • Offer free and easy returns to remove any anxieties your customers have about purchasing items before seeing them in person. 📦

Consumers experienced the effect of supply chain issues

Stockouts became the norm in some industries during the pandemic. And unfortunately, some brands were yet to regain their “in-stock” status on many core products in time for the holidays. 

This limited stock availability combined with shipping delays made the items in retailers’ warehouses even more scarce, causing them to limit discounts. As a response, some shoppers have become less confident about securing goods at competitive prices.

For example, out-of-stock messages rose by 250% compared to pre-pandemic figures and 325% compared to the holiday period in 2019. 

In October 2021, shoppers got over 2 billion out-of-stock messages. Not only that, product catalogue size for retailers over Cyber Week dropped 6% in the US and 5% globally compared to last year.

Needless to say, shoppers are rightfully skeptical of the supply chain and in the ability of their favorite stores to have the products they want when they want them.

How to prep your store for waning customer confidence in the supply chain:

  • Start your Q4 prep early between July and early August instead of the traditional 3-month logistics timeline. Also, work with suppliers to create 3 months’ worth of backup stock for the holiday season.
  • Get flexible ecommerce funding like a working capital line of credit so you can make large stock orders upfront without disrupting your cash flow. From there, track your store’s customer feedback and key performance indicators with a smart ecommerce analytics tool to ensure you’re delivering the best service possible.
  • Bring in items that are small and light with high margins so you can offer attractive discounts no matter what happens in the global supply chain.
  • Negotiate and secure freight space and fulfillment fees early so your goods aren’t delayed once produced and remain profitable.

Rock the ecommerce holiday season like a total boss 😎

The ecommerce holiday season was anything but easy last year — but it still offers brands the chance to increase their customer base, explode sales, and kickstart new growth levels.

But to secure these perks, you’ll need to put your thinking cap on. 

Anticipate problems in key areas like raw material sourcing, production, shipping, warehousing, and delivery. Create a robust plan to tackle each potential risk so you can go into the next holiday season confident about how you’ll stay in stock, wow your shoppers, and grow your sales.

Taking a proactive approach to increasing your holiday ecommerce sales will mean getting out of your comfort zone and facing challenging scenarios head-on. But the payoff will be huge. As your competitors battle stockouts, delays, and the customer complaints that come with them — you can wave their customers over to your store and continue growing your business.

Your best year yet awaits. Get ready for success with SellersFunding.

Launch on Amazon Live with Rebaid Influencer Campaigns

by Brendon Fields

When most brands think about influencers, million dollar post by Kylie Jenner or Kim Kardashian come to mind. For that reason many brand owners are quick to dismiss Influencer marketing as an expensive, inaccessible and an opaque industry. But that couldn’t be further from reality.

When paired with the right influencer, cost can be low and the ROI high. Consumers trust recommendations from influencers they are familiar with, resulting in far higher conversion rates than would be generated through other marketing methods. Successful influencer campaigns are often attributed to brands “leveling up” with record sales and broader brand recognition almost overnight.

There are many platforms where influencers post content. B2B business often find Linkedin or YouTube to be best, while consumer product businesses typically generate the strong results from Instagram or Tik Tok. But for the purpose of this article we will specifically focus on the newest and potentially most lucrative influencer marketing channel!

Amazon Live

For brands that sell on Amazon, there is no better influencer marketing opportunity than Amazon Live. A top initiative of Amazon, Amazon Live is a live streaming video platform that allows highly followed influencers to share and demo products for their audience. Since this video platform is hosted directly on Amazon, viewers can purchase items featured in these videos in a single click.

For readers in the U.S. who are familiar with QVC or HSN (Home Shopping Network) television channels, Amazon Live is the equivalent, but with some major advantages. Unlike QVC or HSN where viewers need to call a phone number, find their purse or wallet, then wait a week or longer to receive the product, on Amazon Live shopper can purchase with a single click and receive their item in 2 days. This makes Amazon Live a compelling shopping network.

How Much Does it Cost?

Getting your product(s) featured on Amazon Live may seem like a daunting or costly endeavor but neither are true. With the help of platforms like Rebaid, sellers are able to get their product(s) featured on Amazon Live for as little as $250. For this modest price, Amazon Live influencers will typically feature your product for a 3 minute segment, providing a demo and sharing the features they enjoy most.

Entry level influencers in the $250 price range typically generate 60,000 – 75,000 views per live broadcast. This means your product will generate a CPI (cost per impression) of less than $0.01 per shopper view. Compare this against a typical PPC campaign and you could expect to spend thousand of dollars for an equivalent number of impressions!

But it get’s even better. Not all impressions are the same. When a shopper sees your Sponsored placement at the top of the search results, it’s often overlooked by shoppers as just what it is, a paid placement. On the other hand, when a shopper views an influencers live stream they are far more inclined to view and purchase your item, based on the trust placed in the influencers recommendation.

So in short, Amazon Live placements are far less expensive, and far higher converting than PPC. But almost no sellers are familiar with this program, so this is the time to act.

How Rebaid Works

While Influencers are great at creating content, they are not always easy to connect with. Finding an influencer that is a good fit for your product, is within your budget and available to produce content is not always easy. For brands familiar with and interested in Influencer marketing, the actual process of connecting with and negotiating a rate with an influencer is often what prevents them from moving forward.

That’s where Rebaid can help. Founded in 2019, Rebaid quickly became one of the largest promotions platforms for Amazon sellers, facilitating discount and rebate promotions for thousands of brands. Recognizing the shifting landscape of product launches, and compelling opportunity of Amazon Live, Rebaid built the first ever influencer program supporting this new platform.

Sellers who are interested in getting a placement on Amazon Live can simply sign up for a Rebaid Seller account and start an influencer campaign by entering basic information about your product category and goals. Based on the information entered, brand can see all Amazon Live influencers that match with their criteria, select the influencer that is the best fit and book a placement with them instantly.

Rebaid leverages existing relationships with the top Amazon Live influencers to seamlessly facilitate placement of your product on an Amazon Livestream segment, without the hassle of trying to build the relationship on your own. Moreover, Rebaid pre-buys placements in bulk resulting in lower cost than you as a brand owner would receive if contacting these influencers directly for a one-off placement.

After you book a placement with an Amazon Live influencer on Rebaid, you will be sent instructions on where to send a sample unit to be featured in the live broadcast. Typically turnaround times from booking to the video going live are 2-3 weeks, in part dependent on how quickly you ship the sample unit to the influencer.

Early Mover Advantage

There is undoubtably an early mover advantage with program, just as has been the case with now established programs on Amazon. When Amazon Sponsored Products was unveiled in 2016, CPC costs were commonly between $0.03 and $0.05 with ACoS under 5%. Those ad rates would be impossible to achieve for even the most well optimized PPC campaigns today. But early adopters of this program reaped tremendous rewards from their early start. The same thing is likely to happen with Amazon Live.

With entry level placements starting at just $250 and an average of 70,000 views on videos created by influencers in the price range, there is almost no scenario where you do not at least recoup your investment. But in the mid or strong results scenario brands may achieve ROI’s 10-20X their investment. Moreover these campaigns are scalable, with mega influencers within Rebaid’s network with millions of followers on Amazon Live.

Summary

There have been many evolutions of Amazon’s marketplace in the last decade, and with each change opportunities arose for brands that took early advantage. Amazon Live represents not just the latest evolution of Amazon’s marketplace, but amongst the largest. With Rebaid’s new influencer program, the barrier to entry is eliminated and the cost to explore this new opportunity is less than most brands daily PPC budget. So create your first campaign today and take advantage of this profitable, scalable growth opportunity.

What to Sell On Valentine’s Day? 6 Swoon-worthy Ideas for Online Retailers

Whether you’re a hopeless romantic or a proud solo flyer, it’s hard to find something not to like about ecommerce on the day of love, a.k.a. Valentine’s Day. ❤️

This is a day where people all over the world share what’s in their hearts and pockets, creating an opportunity for online retailers to secure huge paydays. In the US, for example, ecommerce online spending was tipped to hit $22 billion in 2021 and across the pond just 25% of British people said they weren’t planning to join in on the V-Day fun.

So, what’s the secret to Valentine’s Day selling success? 

It all comes down to what you sell and how. We’ve curated some proven pointers to help you decide what to sell on Valentine’s Day, plus top tips to help position your store to win. 

The scoop on Valentine’s Day selling

  • Why it pays to think outside the box on Valentine’s Day
  • What to Sell on Valentine’s Day: 6 product ideas shoppers won’t forget 
  • How to make your offers the next Valentine’s Day best-sellers
  • The right way to do Valentine’s Day in ecommerce

Need extra cash flow to prep for big shopping days? SellersFunding can help.

Beyond Dropshipping Chocolate: Why it pays to think outside the box on Valentine’s Day

Valentine’s Day is a great time to flex your creative muscles and craft offers that’ll blow shoppers away. But sometimes, discovering what to sell on Valentine’s Day is easier said than done, especially if you’re feeling a little fried from the recent Q4 rush

To get you motivated to explore new and creative product ideas, let’s zoom in on some of the reasons you need to really let your brand shine on Valentine’s Day:

Stand out from the crowd

From clothing stores to insurance brokers, the market is chock-full with brands trying to get a piece of the V-Day pie. To beat the competition in your niche, you’ll need something special up your sleeve. An eye-catching product that’s different from the rest can help you rise above the noise and boost your Valentine’s Day sales.

Reach new audiences

To keep fresh leads flowing through your store, it’s important to test new audiences. A great way to find profitable customer segments is to shake up your product line. This tactic really comes to life on days like Valentine’s Day, as shoppers are expecting newness. Plus, you’ll have more eyes on your latest creations than on a typical day. When your product offers are done correctly, you’ll not only have a bumper V-Day but you’ll also have new fans you can nurture sales relationships with later on.

Boost your store’s profitability

When your brand is one of only a few selling an item, you’re in the power seat. You can charge a premium, and with some clever marketing, claim the lion’s share of sales. With higher purchase volumes, you can also negotiate better rates with your suppliers, increasing your brand’s profit margins. But the best part is, you can use these profits to take the pressure off your cash flow as you prepare for future holidays like Mother’s Day and Easter.

Is your store’s growth keeping you up at night? Discover how SellersFunding can help make scaling easy.

What to Sell on Valentine’s Day: 6 product ideas shoppers won’t forget  

If you want to shake up your Valentine’s Day collection but are struggling to come up with head-turning offers, we’ve got you covered! 

Let’s get into some product ideas and hacks you can use to wow shoppers and win more sales this Valentine’s Day:

1. Goodies with a personalized twist

Whether you sell robes or flowers, personalization goes a long way in making shoppers and their loved ones feel special. But you don’t have to stop at names and initials. 

You can create a whole new vibe in your products by allowing customers to add with things like:

  • Fun memories
  • Inside jokes
  • Favorite scents, colors, and fabrics
  • What they love about their partner

2. Offer ‘lucky dip’ items 

To add a surprise element to shoppers’ gifts, why not offer add-on ‘lucky dip’ products covering different genres like comedy and romance? 

Tie this lucky dip in with the chance for buyers to win back their order if they share your brand on social media. Not only will this super fun ‘marketing hack’ increase your average order value, you’ll also keep the fun alive in your store to keep shoppers coming back.

3. Revive classic holiday offers with a Valentine’s Day twist

Want to ramp up excitement and sales for your Valentine’s Day drops? 

Get some nostalgia going in your store. Put a romantic spin on top-performing offers and products from other holidays

For example, if you have a popular Advent calendar, you could offer a Valentine’s Calendar stocked with treats. You could even step your Valentine’s Day calendar up by allowing shoppers to choose what they put inside it, using items from your store.

4. Keep the mood light with novelty gifts

Valentine’s Day may be for couples, but that’s not to say you can’t have a little fun. 

Create products with funny slogans, jokes, or meanings centred around love and relationships for shoppers that prefer a giggle over serious gifts. 

Also, don’t forget about your customers that are rocking the single life on Valentine’s Day. Create fun products to celebrate their status and shout them out on social media to win some extra sales.

5. Limited edition creations using your existing products 

If you have a top-performing product, now is the time to create a Valentine’s Day variation to encourage your customers (and lurkers!) to buy. 

For example:

  • If you sell wine and spirits, you could infuse them with some select fruits to create a memorable product.
  • If you have a pet store why not create Valentine’s Day treats for your shoppers’ pets.
  • Sell trainers? Create candy versions of your top-performing designs.

6. One-time bundles with related brands

Most of your Valentine’s Day customers will be paired up, so why not take a page out of their book? 

Find a Valentine’s Day partner or influencer to create exclusive offers for your business. 

For example, if you run an artificial floral shop, you could link up with a pottery and vase store to create jaw-dropping flower and plant displays. 

Working with businesses that compliment your products is not only good for your business, but it also helps your customers too.

When you partner up for exclusive offers, your shoppers can:

  • Explore new products
  • Save time on finding products to buy
  • Save cash through promotional bundles

Now that you’ve got the creative juices flowing on what products and offers to sell on Valentine’s Day, it’s a good idea to brush up on how to promote your offerings in the run up to this important event.

How to make your offers the next Valentine’s Day best-sellers

Start early to create an exciting build-up

To build anticipation for your Valentine’s Day drops, it’s important to start your prep early so you have enough time to market your products and optimize your ad campaigns. 

Here are some ways to get shoppers excited for your Valentine’s Day collection:

  • Drop hints about your upcoming releases.
  • Ask shoppers to guess what your next product will be.
  • Spread the word with scroll-stopping content, competitions, and influencer campaigns on social media.

Create dropshipping relationships to ease cash demands 🤝🏼

While Valentine’s Day is a big money-maker, it can also be a huge cash drain. To avoid overstretching your cash flow, join up with dropshipping companies so you can carry more products without committing heaps of capital. 

Stick to local providers to keep your shipping times short and don’t be afraid to ask retail and wholesale companies if they’d be willing to dropship items for your brand. 

For example, if you want to start dropshipping cupcakes you could work with a local bakery to get goods to customers.

Show some love on your website and social media

To get shoppers excited for your Valentine’s Day gifts and promos, you’ll need to make your website and social channels reflect the upcoming extravaganza. 

To really spread the love on social media, be sure to:

  • Tweak your listings with red banners, hearts, and feel-good messages.
  • Tie in updates with countdowns and polls to get shoppers engaged.
  • Share sneak peeks of your products being made.

Provide shipping deadlines and meet them no matter what 

Your buyers will be eager to impress their significant others on Valentine’s Day. 

So it’s crucial that your shipping carriers remain on top form. You also want to make sure you inform shoppers on cut off dates for customizations, order amendments, and anything else that might be needed to ensure on-time delivery.

And remember, fast and reliable carriers will be your store’s best friend during any peak shopping day or season. 📦 

Communicate with your shippers to set expectations and send reminders to shoppers to ensure they remember to get their presents fast. Giving everyone a healthy ‘heads up’ will help avoid confusion and costly errors on both sides.

Get flexible ecommerce funding

Key events like Mother’s Day are around the corner. To support your Valentine’s Day sales while keeping enough cash on hand to prep for upcoming events, you may need to line up some extra cash flow.

Look for a flexible ecommerce funding provider to bring stability and a little extra wiggle room to your cash flow. For big events like Valentine’s Day, you could look at a working capital solution or revenue advance to access your incoming sales (regardless of Amazon’s rigid payout schedule).

The right way to do Valentine’s Day in ecommerce

Valentine’s Day is an exciting and profitable holiday for ecommerce brands. With the right setup, you can explode your brand’s sales and reach for long-lasting impact. 

But like any big shopping day, prepping for V-Day takes work.

To avoid costs getting out of control and stay on track towards a healthy ROI this Valentine’s Day, you’ll need to be intentional about your products and offers. Partner with other established brands, test new offers, and watch the clock to ensure your orders make it to customers in time.

Make these bold moves and you’ll have a store that stands out on Valentine’s Day with plenty of swoon-worthy results worth bragging about.

If cash flow concerns are holding your Valentine’s Day plans back, we’ve got good news. SellersFunding can help you access fair and flexible working capital. Find out how.

Chinese New Year Is Almost Here. Is Your Store Ready?

We’ll let you in on a not-so-secret secret. If you sell online, Chinese New Year is a fantastic opportunity.

Why? Well, not only is the Chinese New Year the biggest holiday in China, but the Chinese ecommerce market is the biggest in the world — and it’s no coincidence.

China-based shoppers love to shop online and are flocking to ecommerce stores at an increasing rate. In fact, 782 million people purchased online in 2020 and 62% of shoppers said they were going to increase their online spend for 2021’s Chinese New Year.

Of course, while the wins can be high on the buy side — the supply side isn’t without its issues when Chinese New Year comes around.

But fear not! In this post, we’ll reveal why Chinese New Year is one of the hottest opportunities for ecommerce stores. We’ll also share how you can capture more sales and dodge operational disasters to make this Chinese New Year your biggest and brightest yet.

The scoop on Chinese New Year

  • Why the best time to prepare for Chinese New Year is right now
  • How to win during Chinese New Year: Ecommerce edition
  • The blueprint for a profitable Chinese New Year

Let Chinese New Year be an opportunity, not a setback. Discover how SellersFunding can help you get ahead.

Why the best time to prepare for Chinese New Year is right now

Chinese New Year, or “Chunjie” as it’s affectionately known, is on its way and there’s no time like the present to get ready for it. 

But if you’re just recovering from Q4 and eyeing up key celebrations like Valentine’s Day, you’ve probably got a lot on your plate.

Before we dive into the practical tips to help you ace the Chinese New Year holiday both on the sales and supply side, let’s take a minute to explore some of the reasons why this is one holiday you definitely want to be ready for.

Beat the last-minute supply chain crunch

From buying raw materials to getting your goods shipped before the last vessel sets off, speed is the main motto in the run-up to Chinese New Year. 

You’ll need to get your orders with suppliers and vendors early to avoid price hikes and delays for things like:

  • Production
  • Storage
  • Shipping

Plan how you’ll get and stay in stock

Some suppliers shut down their operations for an entire month. That’s right, that’s an entire month without access to goods, even if you run short. 😨 

And to make matters even tighter, the cut-off date for securing goods can be much earlier than the Chinese New Year, making it easy to get caught out. 

To avoid costly stockouts, you’ll need a plan that:

  • Accounts for the increased holiday sales online.
  • Gets you enough inventory to cover the time your suppliers are away.
  • Covers how long it takes to get goods made and shipped to your warehouse.

Reach a wider market 🌏

When Chinese New Year rolls around, so does the potential to reach shoppers outside of China who also celebrate this occasion. 

Consumers throughout South East Asia like the Philippines, South Korea, Malaysia, Singapore, plus communities around the globe all celebrate Chunjie. 

When you get prepared for Chinese New Year, you gain access to markets and people you may not be serving in your business. With the right formula for boosting sales, brand awareness, and customer acquisition, you can scale your sales big time.

CNY 2022 is going to be huge. Make your store roar this Tiger Year with SellersFunding.

How to win during Chinese New Year: Ecommerce edition

With so much cash up for grabs, you need to position your brand to shine — not only on the sales side but the supply side too. 

Let’s dive into the steps to take to ensure this Chinese New Year is a hit with your customers (and bank account).

Start your prep early


This first step may seem simple, but you’d be surprised how easy it is to fall behind on your Chinese New Year prep.

When you’re going full steam ahead on your new year goals and still crunching the numbers from Q4, time flies by fast. So start your Chinese New Year early. 

A three to four month headstart should cover you but if you’ve missed this slot, don’t sweat it. Just get started with your prep as early as possible then schedule preparations early for the following year’s celebrations.

Optimize your supply chain

To ensure your store runs like clockwork when demand spikes, it’s important to get your supply chain up to scratch.

Look for ways to improve your output from design to delivery so that you’re not only more profitable and efficient, but you also leave a lasting impression on your new Chinese New Year shoppers. 

Here are some key business tasks and areas to get ready for the Chinese New Year rush:

  • Inventory forecasting: Create a sales forecast to understand your store’s demand levels, including any key holidays you’ll celebrate in Q1 too. 📈
  • Manufacturing: Lock in your production slots with your suppliers and create a timeline with a buffer to absorb any delays. Also, refill your backup stock and set up accounts with local suppliers to create three-layered defense against stockouts.
  • Shipping: It’s common for shipping companies to hike their prices as demand increases and space becomes more limited. Get outbound shipments to the port at least two weeks before Chinese New Year and use a reliable freight forwarder.
  • 3PL and warehousing: Communicate with your warehouse to drip feed stock to your 3PL provider to reduce storage costs. Also, make your 3PL aware that you’ll be participating in the Chinese New Year celebration so they can ramp up your services in time.
  • Marketing: Make your marketing team aware of the upcoming celebration and design campaigns to attract shoppers. For example, you could blend pay per click advertising with influencer marketing and email marketing to get more eyes on your products in new territories fast. Also, keep an eye on your inventory availability and marketing-generated leads to ensure they align.

Analyze shopping trends to uncover potential products and promos

Whether it’s bundling existing items or a fresh drop, Chinese New Year is a great time to release new products. To ensure your offers get the best response, study buying trends in the territories where you intend to market.

For example, luxury goods are popular in China, so if you can create a high-end, limited-time product, now’s your chance. Also, analyze your competitors’ past and present offers so you know what to beat and can craft an irresistible offer.🔍

Ask yourself:

  • What products are popular in the market right now?
  • What items are rising stars in our niche at the moment?
  • What marketing channels and types work well with our target market during the festivities?
  • Which offers were successful for our competitors last year? This year?
  • Are there any promotions our competitors are running now we can adapt for bigger results?
  • How can we tie traditional Chinese New Year gifts into our offerings?  

Decorate your store highlighting Chinese culture and traditions

Share helpful content and educate your audience in other territories on things like the 15-day schedule for the Chinese New Year celebrations. Note what animal the year is and share what this represents. 

For example, 2022 is the year of the Tiger.🐯 

The belief is those born during the Tiger year are confident, assertive, and natural born leaders. Why not take a moment to shout out the people that fall into this demographic and drop daily gems on the Year of the Tiger to engage shoppers?

The color red is also a signal of good luck and prosperity in China, and many give gifts using a small red envelope.

Plus, the red lantern is the most popular and crucial symbol for Chinese New Year. So, spruce up your marketing to engage shoppers and spark joy and excitement among them through things like:

  • Red banners and decorations on your website and social media.
  • Well wishes in Mandarin, Cantonese, and English.
  • Free gifts in red envelopes.
  • Use red packaging, or details. 🎁

Get funding to cover high expenses

All the stock and back-office preparation is great for getting ahead of the Chinese New Year mayhem and crushing your sales goals, but it can also get costly.

Depending on how far into the future you need to cover inventory and your estimated demand, you could see costs double or even quadruple.

But don’t panic, you don’t have to foot the entire bill out of your pocket. Flexible ecommerce funding can help reinforce your cash flow so your store can manage all the planned (and unplanned) expenses that crop up.

For holiday seasons, working capital usually works best. You can withdraw from your assigned cash pot as much or as little as you’d like.

The blueprint for a profitable Chinese New Year

Chinese new year offers a fantastic opportunity for your brand to forge deeper connections with customers, expand its reach, and level up your supply chain.

But competition is stiff during Chunjie, so precise planning and execution are critical to get ahead and win over shoppers. 

You’ll need to understand what your target is looking for then add more value. Create unmissable products and promotions and seal the deal with an ultra-sleek delivery to ‘wow’ your visitors.

The clock is ticking, so don’t sleep on this huge opportunity. Start drafting how you’ll nail your product line, marketing, and supply chain for a successful Chinese New Year.

Chinese New Year could be the spark that lights up your ecommerce store. Find out how SellersFunding can help you go in with a bang.

5 Tips to Supercharge Your Amazon FBA Business for Retail Holidays

While some people may be saddened by the end of Q4, Amazon FBA business owners are busy gearing up for the next big retail holiday.

Even though the Cyber Five takes place during Q4, there are several other retail holidays throughout the year to plan for beginning with Chinese New Year, and then heading into Mother’s Day, Amazon Prime Day, and Back to School, to name a few.

Q4 in 2021 was unlike previous years, and as Amazon FBA business owners navigated the added challenges with logistics and inventory, it only prepared them for what’s to come in 2022.

This article will outline the top 5 ways to supercharge your Amazon FBA business before any retail holiday rush starts and after it ends.


Let’s dive in!

#1 Inventory, Inventory, Inventory, and more Inventory

PRE holiday

By far, the biggest challenge right now is inventory and how you ship your inventory- logistics. Hopefully, you’ve considered the challenges with inventory you may have faced earlier in the year and planned as early as possible. 

Monitor your ASIN level limitations, activate a robust 3PL plan, and prepare your freight forwarding needs as early as possible. Remember that Amazon fulfillment centers may also experience backlogs which may further delay the check-in process. Inventory planning and delivery will be everything.

POST holiday

Logistical impacts are being forecasted to be felt well into the new year. While your pre holiday inventory planning is critical, you’ll want to take a close look at what excess inventory you’re holding post holiday. It may be time to ask yourself difficult questions, such as if your products are meeting demands and profitable.

#2 Increased Marketing Strategies

PRE holiday

Any holiday rush isn’t the time to decrease spend on marketing. With the largest holidays jammed into Q4, it’s important to focus on multiple marketing efforts to ensure your product and brand get the attention they deserve.

Luckily for Amazon FBA business owners, a few on and off Amazon tricks can help sellers elevate their marketing plans ahead of the holiday rush.

TikTok – If you’re a brand owner, sites like Tiktok offer massive marketing opportunities with little associated costs. Whether you choose to create a branded product-based account or have influencers support your brand, Tiktok is a great way to vamp up your marketing ability amid the most highly competitive time of year.

Content Sites – Yes, back to blogging and building content authority. While these niche websites are for content marketing monetization, they can also be used to help gain credibility, authority, and SEO ranking for your Amazon FBA business. Traffic online will be at all-time highs during most holiday rushes, and since Amazon prefers traffic from multiple avenues, content sites are a great option to leverage. Be sure to get started well ahead of the holiday.

Amazon Posts – We keep saying it, but not enough sellers take advantage of the free marketing space Amazon posts offer. Like Instagram, Amazon FBA business owners can create engaging and compelling posts to capture Amazon shoppers’ attention. Like other social sites, customers can follow your brand, making Amazon Posts a clear frontrunner in your Amazon FBA marketing plan.

Pay close attention to content trends just ahead of the holiday, and make an implementation plan so you can wow your shoppers on and off the Amazon marketplace. Your Amazon FBA marketing funnel should be an evolution and a powerhouse that exemplifies its biggest strengths during the most significant time of the year. 

POST holiday

During the rush of the holiday, sellers may opt to increase Amazon pay-per-click advertising spends to gain more visibility while more shoppers are on the site. Following the holiday, you’ll want to review your ppc data to discover which campaigns were effective and those that were not. You may need to pause specific holiday keyword campaigns and re-target new campaigns at the start of the new year.

#4 Evaluate Your Pricing

PRE holiday

Pricing on Amazon can be ultra-competitive, especially at crucial times of the year. You want to be flexible with your price plan but also understand your margins. 

Use coupons and promotions that make sense for your business, and monitor your listing more closely at high traffic times like Black Friday, or Chinese New Year. These high traffic times can see an increase in unknown sellers winning control of your listing’s Buy Box. 

Adding a small bonus gift or surprise freebie during holidays can increase customer satisfaction if the quality is maintained. Decide if such offers are within your margins and strategize to increase perceived value and garner more attention outside of competitor products.

Amazon pricing should be strategic, avoid making rash pricing decisions that could negatively impact your business.

POST holiday

Start by reviewing your numbers and creating a list of takeaways to improve your pricing strategy better. Did you have coupons listed at critical times, did you notice you lost the buy box to other sellers, or were you priced right for your offer and market?

The goal of pricing is to stay competitive but be profitable, so calculating your floor price is always a good idea ahead and following the holiday.

#4 Wisely Control Your Cashflow

PRE holiday

Remember those inventory problems we mentioned earlier? Well, cash flow can help Amazon FBA sellers navigate stressful inventory crises and better logistical planning.

Solutions such as working capital, daily payouts, and a digital wallet are great options to help alleviate cash flow, but there may be a hidden gem that sellers often overlook.

Amazon FBA reimbursements are a great way to recover funds to increase your liquidity, especially during peak times and added challenges.

FBA reimbursements are reimbursements owed to sellers by Amazon for discrepancies.  Discrepancies can range in type from overcharges in FBA fees, lost, damaged, disposed, or destroyed inventory.


Performing an Amazon audit will outline the discrepancies on an account, so the next step is filing the Amazon claim. Amazon claims can be filed at any time to recover Amazon FBA reimbursements, so just ahead of the holiday is a great time to get started.

Gaining a solid grasp on your cash flow ahead of the holiday is essential so that sellers can use their money to implement strategic holiday planning and execution.

POST holiday

Monitoring cash flow in your Amazon FBA business is always a good idea, but following the holiday, you may want to evaluate if there are any high-interest loans or credit cards that are hurting your bottom line. 

Opt for Amazon-specific funding or accelerated payouts if those are an option to stay on top of your cash flow. 

Keep a keen eye on those foreign transactions and make the switch to a funding provider that can meet the demands of your Amazon FBA business. Sellers often think the only option is to negotiate with banks, but that is simply not the case.

#5 Optimize Your Digital Shelf

PRE holiday

Ah, but what is the digital shelf, you’re wondering? Well, in this case, it’s your Amazon listing. While Amazon listing optimization should be effectively managed throughout the year, it should become a solid focal of the holiday.

In the months leading up to the holiday, you’ll want to review your competitor listings and stay on top of holiday-specific trends. Are your images compelling, and do they stand out from the other private label brands?

It’s also an excellent time to perform a listing evaluation and review your keywords along with backend search terms.

Another great tip is to add some holiday-specific creative assets to your Amazon storefront and your A+ content. Does your video have a holiday theme or seasonal touch? These are just a few ways to optimize your Amazon listing for the holiday.

POST holiday

You’ll want to remove and replace creative assets that were seasonal or holiday-focused. If you added any special bonuses to your product offer for only the month of Dec, you’d want to ensure your listing post holiday reflects the correct offer.

Take some time to review customer reviews and feedback and take notes on things you may be able to address in the new year.

Final Thoughts

These times may be a little unique, but as Amazon FBA business owners, you’re an innovative and determined group of savvy ecommerce business people. Hopefully, you found this guide helpful and can test out some of these tips.

 

Get ahead of inventory and logistics with help from SellersFunding.

To our valued Sellers Funding followers! Get $1000 free in FBA Reimbursements!

Amazon Second Chance: Is Amazon’s New Environmental Ecommerce Drive Even Worth A First Chance?

Amazon may be the biggest ecommerce retailer on the block, but it gets a bad rap for its sustainability credentials (or lack thereof). 

Despite a rocky start, the ecommerce giant knows a good business play when it sees one — and with the rise of environmentally-minded consumers, investing in a new sustainable selling program was a no-brainer. 

Enter, Amazon Second Chance. 

This little-known program allows you to recycle, repair, and return devices — sometimes trading in your old electronics for gift cards. And there’s also great news for sellers looking for new ways to earn cash: Amazon Renewed — an online marketplace dedicated solely to selling refurbished electronics.

But do Amazon’s latest attempts to reduce e-waste present new opportunities for your business? And if so, how can you get involved?

In this ultimate guide to Amazon Second Chance, we’ll dish the goods on the new sustainability-focused program and let you know if it’s a suitable space for you to trade in, recycle, or sell pre-loved electronics and smart home devices. 

The Scoop on Amazon Second Chance

  • All about Amazon Second Chance 
  • Amazon Second Chance: Options for ecommerce sellers
  • Amazon Renewed: The lowdown
  • What are the benefits of selling on Amazon Second Chance? 
  • What is the downside of selling through Amazon Second Chance?
  • Amazon Second Chance: Wrapping it up

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All about Amazon Second Chance

In a nutshell, Amazon Second Chance features tons of pre-owned, refurbished electronics and smart home devices that customers have returned. These devices are Amazon certified, which means they are guaranteed to work, look brand-spankin’ new, and each one comes with a limited warranty. 

Here’s how to get involved: 

  1. Trade in pre-loved items: Amazon Second Chance is the perfect way to get rid of electronics lying around your house, while earning back a bit of what you spent on them. Plus, the list of eligible items for trade-in is pretty substantial. 

Categories for trading include: 

  • Kindle devices and other e-Readers
  • Tablets
  • Streaming media players
  • Bluetooth speakers and headphones
  • Echo and Alexa
  • Home security devices
  • Wireless routers
  • Smartphones
  • Gaming devices, consoles and controllers  
  • Computers and laptops 
  1. Recycle old devices and packaging: Most local recycling centers won’t accept old electronics, so it’s hard to know what to do with them. Especially as electronics contain many harmful chemicals like lead and lithium that you definitely don’t want seeping out into the earth. Amazon Second Chance is the perfect alternative.
  2. What’s old is new again: You can shop bargain bin prices when you hit up the Amazon pre-owned market. Here you’ll find deals on pre-owned, refurbished electronic devices certified by Amazon. Each product comes with a warranty and live customer support free for 90-days post-purchase to help you get to know your products. 
  1. Recycle Amazon packaging: Amazon Second Chance also allows you to recycle specific types of Amazon packaging. So, if those blue and white envelopes and boxes spill out every time you open your closet — this program is perfect for you. 

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Amazon Second Chance: Options for ecommerce sellers

Amazon comes up with new ways for sellers to make money all the time — and Amazon Second Chance is no exception. Their innovative Amazon Renewed program allows sellers to offer gently used electronic goods — and help boost their sustainability credentials at the same time.   

You can sell three types of products through Amazon Renewed:

  1. Refurbished — used products that were returned because they were faulty or the customer no longer wanted them. 
  1. Pre-owned — products that are used but in better condition than a refurbished product. 
  1. Open-box — unused products in a returned open package. 

Amazon Renewed: The lowdown

Who can sell on Amazon Renewed?

As with all things Amazon, there are a few hoops to jump through before you can sell on Amazon Renewed.

Let’s break it down: 

  • Amazon explicitly states that only sellers who maintain a high quality and performance bar can sell through Amazon Renewed. So, if you already sell pre-owned, refurbished electronic goods and you’ve got a great Amazon IPI, it may be worth applying.  
  • As a qualified Amazon Renewed Seller, you must be willing to have devices professionally inspected, tested and cleaned, so they look brand new and work like a charm before you repackage and sell them. 

Amazon Renewed sellers get access to exclusive selling tools as well as a global marketplace that allows you to expand your store beyond your local reach. But, like anything else sold on Amazon, this program has its drawbacks. A major one is the strict criteria to qualify. Let’s take a look. 

What are the qualifications to sell on Amazon Renewed? 

Once your products meet the strict performance platform requirements, you have to follow a pretty aggressive plan of action to get your online store approved. 

Here are some of the requirements to get selling on Amazon Renewed:

  • Provide invoices of at least $50,000 for refurbished products (the same you want to sell on Amazon) sold in the past 90 days from the date of the submission.
  • As an existing Amazon seller, you must also have an order defect rate (ODR) of 0.8% or less in the past 90 days, or your application will be rejected.
  • You must also provide a warranty of at least 90 days for all refurbished items you want to sell.
  • Further rules apply to selling Apple products, so be sure to do your homework. 

What can you sell on Amazon Renewed?

As a seller, you can offer refurbished, pre-owned and open-box products in these categories. Just don’t forget — when you list an item, you must indicate that it’s refurbished and not new:

  • Automotive Parts
  • Cameras
  • Headphones & Audio
  • Home Appliances
  • Home & Industrial Tools
  • Kitchen Appliances
  • Laptops & Computers
  • Musical Instruments
  • Outdoors & Sports
  • Office Equipment
  • Smartphones
  • Tablets
  • Television Sets
  • Video Game Consoles
  • Watches

How do you set up a refurbished product shop on Amazon? 

The first step is to become a registered Amazon seller (if you aren’t already). Once you register, it’s important to make sure you have enough inventory to begin selling on Amazon Renewed. 

If you don’t already have inventory built up, look for products that are:

  • High demand, low competition: Your aim is to sell hundreds of products each month without needing to fight off tons of competition, so look for niche products that fill a gap in the market. (Psst! Google is your best friend when seeking niches.) 
  • Don’t compete with Amazon: Look for products that don’t compete directly with Amazon products or private label sellers — your products may get denied if you do so. 
  • Price competitively: Check out the current Amazon Buy Box prices and aim for a price within 2% of what you see. 

What are the benefits of selling through Amazon Second Chance?  

Amazon Second Chance may have a tough application process, but it’s 100% worth the effort. 

Here’s why: 

  • Amazon’s high standards and rigorous application process means far fewer competitors make it through the doors. This opens up the perfect opportunity to move returned electronic products that you may not sell elsewhere. 
  • Amazon Renewed gives you the opportunity to reach a different demographic than those you find on standard ecommerce platforms. Shoppers who seek products through Amazon Second Chance are savvy, looking for bargain prices, and are more likely to return in the future for more discounted devices. 
  • A 90-day guarantee backs Amazon Renewed products, making purchases more appealing to customers. Amazon protects sellers with a full disclaimer, setting consumer expectations to anticipate a not-quite-perfect product condition.

What is the downside of selling through Amazon Second Chance?

There are obviously a ton of benefits to Amazon Renewed, but that doesn’t necessarily mean it’s right for every online retailer. 

Here’s why: 

  • Depending on the type of customer you serve, selling ‘renewed’ or ‘refurbished’ products may hurt your brand’s image — especially if you usually deliver luxury or premium items. 
  • Your products will also appear in searches with new products, which means you’re not just competing with other pre-owned devices. When you create a listing, it’s crucial to make it crystal clear exactly what you’re selling to not confuse your products with something new. 
  • Pricing is another key factor when selling refurbished electronics. If you price too low, arbitrage sellers may pick up your products and turn around to sell them at a higher price on competing ecommerce sites. That’s why it’s important to keep your eye on the Buy Box for your product and stay close to that price. 

Amazon Second Chance: Wrapping it up 

Amazon Second Chance is a great way to get more involved with the recycling economy.

And for sellers, Amazon Renewed is an excellent opportunity for the right business model — especially if you’re looking to expand your second-hand electronics store and open new doors for your business. 

Though the program guidelines are stringent, once your application’s accepted you can gain access to a new market of Amazon enthusiasts looking for pre-loved electronics. And with fulfillment on your side, you can expand your business to a bigger global market with less competition. It’s win-win.

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Ready to Go Global? How to Take Your Shopify International in 9 Simple Steps

When it comes to making a global ecommerce impact, no other platform compares to Shopify

The ecommerce giant has ruled the ecommerce roost for a while now, but thanks to Covid it’s reached new heights — according to stats reported in late March 2021, Shopify is now home to over 1M businesses and raked in close to $1 billion in Q1. 

So, what does this mean for your growing ecommerce store?

Shopify may just be the perfect platform to help you reach new cross-border audiences and position your store for a global takeover. 

Of course, expanding to other countries isn’t without challenges. But that’s where we come in. 

In this ultimate guide to Shopify international selling, we’ll dig into the details and dish out how to take your ecommerce store across borders in nine simple steps. 

The scoop on going global with Shopify international 

  • Step 1. Do your Shopify international homework
  • Step 2. Consider friendly local payment option for Shopify international shoppers
  • Step 3. Get on the same page as the locals 
  • Step 4. Get crystal-clear about delivery times 
  • Step 5. Get to know your shipping costs
  • Step 6. Set up your return plan 
  • Step 7. Consider customer service based on time zones
  • Step 8. Dial-in your international ads 
  • Step 9. Study the local culture
  • Time to take action with your Shopify International business 

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Step 1. Do your Shopify international homework

As a growing ecommerce brand, you already understand the importance of targeted marketing. The same, customer-centric philosophy applies when you take your Shopify store international. 

Simple, right? Well… not quite.

Every regional market has its own unique purchasing habits — for example the types of store layouts certain audiences expect or the online browsing patterns of different consumers in different cultures. So, before you leap into a new market, it’s essential to investigate your options and choose just one new market to dive into first. Get it right, then move on to conquer the next. 

If you don’t have international sales yet, identify the markets that would ideally match your store. Start by thinking about markets that are relatively close to you, are easy to ship to, and have similar purchase habits. 

Then, ask yourself the following questions: 

  • Is there a demand for my products in this market?
  • What’s the competition like in this market?
  • Is English a primary language, or will I need to cater for a different language?
  • What additional costs do I need to consider that are particular to this region?

Step 2. Consider friendly local payment options for Shopify international shoppers

If you’ve been selling in the US, you’ll be used to asking shoppers to pull out a credit or debit card to make an online purchase. But for many countries, that’s not how things are done. Often, international shoppers use secure banking transfer systems or other more common payment methods in their regions.

To make international payments simple, here’s what to do:

  • If your store uses Shopify Payments, set up payments familiar to your target regions to provide a hyper-localized shopping feel for customers. 
  • Remember, Shopify offers more than 130 currencies, allowing customers to convert pricing to a currency of their choice. When they’re ready to check out, Shopify does the conversion for you but pays out in US dollars. 

Step 3. Get on the same page as the locals 

How likely are you to purchase from a Shopify international store in another language? Yeah, neither are your customers. In fact, 42% of Europeans never purchase from a store in a language other than their own. 

To avoid customers running your sales pages through Google translate each time they shop, it’s important to support the local language. 

But the buck doesn’t stop there — because Google isn’t fooled when it comes to countries that share your language either. When shoppers search for their favorite product, Google only shows them content most relevant to them — and that includes geographic proximity. 

The answer? International domains

By setting up domains specific to the region you’re targeting, you can provide a more personalized experience that includes content in local languages and pricing in local currencies. For example, let’s say your standard US domain is mystoreonline.com. You could set up shop in France by using mystoreonline.fr or fr.mystoreonline.com.

Step 4. Get crystal-clear about international delivery times 

If you ship from the US to Canada, it probably takes a little longer than shipping locally. But shipping to the other side of the world? You’ve got a whole new set of standards to deal with. 

Here’s how to ace international shipping:

  • Update your shipping information frequently to be as accurate as possible. 
  • Find out what carriers you will use, what issues may arise with customs, and whether your customers will have to pay additional fees like VAT taxes when they pick up their merch. 
  • Set reasonable expectations with your customers to make sure you spend less time managing customer service complaints — and also gain the advantage of customers who purchase from you multiple times. 

Step 5. Get to know your shipping costs

With great international selling, comes great additional shipping costs.

These costs are known as ‘landed costs’ — the total amount you pay to deliver a product to an international address. 

Landed costs include shipping costs, taxes, insurance, and duties or customs fees. Get to know these inside-out because they’ll impact how much your customers pay and will affect your conversion rates. 

For example, if you quote a manageable $13.50 shipping fee for an international sale, you may not account for the $20 duty fee added to the order. Your customer is in for a rude awakening if their package gets caught up in customs.  

So, before you expand, get familiar with the rules and regulations of specific counties. These rules may help determine which countries to start selling in, and will help prevent any future mishaps if you miscalculate the actual cost for your customer. 

Step 6. Set up your return plan 

Returns are stressful enough, but when you go global with Shopify, you’ll have a whole new set of requirements to think about. 

To avoid missing the returns beat, home in on regional legislation around international returns, and do some digging around typical return behavior for the countries you target. 

Despite the drawbacks, when you have a standard return policy that’s visible and easy to understand, you’re far more likely to capture sales. Though returns are inevitable, you’ll reduce the likelihood of having items sent back if you do the following:

  • Create clear images with good lighting from multiple angles.
  • For wearable items, use handy apps to provide virtual wardrobes and fitting tools.
  • Double-check packaging to ensure everything is boxed and packaged well.
  • Get a thorough grasp of third party fulfilment policies.
  • Stay in touch with customers about their satisfaction and experience.

Step 7. Consider customer service based on time zones

Believe it or not, if you start small, managing customer service in different time zones should be a cinch. 

To offer solid customer service across all your selling markets, take time to:

  • Get to know the local time zones in the regions you plan to expand. The last thing you want is frustrated customers who can’t get anyone to log onto chat for five more hours. 
  • Look into hiring a virtual assistant to handle customer care in your off hours — there’s no sense in working around the clock as a business owner. For larger companies, check out ways to partner with customer service agencies based on your size, budget and needs. 

Step 8. Dial-in your international ads 

Social media is a great way to connect with customers all over the world — and if you’re already running local ads on social, all you need to do is to get them segmented and dialed in for local markets. 

Here’s how run ads that will convert in any market:

  • Create new custom audiences that match the regions you plan to target. 
  • Spend some upfront time researching audiences in your new markets. Chances are you’ll discover they have different interests, behavior, and shopping habits. 
  • Consider which language your new audience prefers to view ads in, what currency you need to use for your ads, and any cultural nuances that will increase your chance of connecting (think: images, styling and messaging). 

Step 9. Study the local culture 

If you’ve ever traveled abroad, you know cultural differences are real — drilling down on these is everything when it comes to international sales. 

To make sure you hit the local culture in the right way, follow these three tips:

  • Make sure your brand messaging is culturally sensitive. Remember, things that are acceptable in the US could be taboo in other regions.
  • Take time to study any significant social or political events that may affect the language you use. 
  • Learn about customs, traditions and what’s acceptable culturally — especially when it comes to specific products, images, and messaging. 

Time to take action with your Shopify International business 

Congrats! Now that your plan’s in place, you’re ready for the upfront work it takes to get your Shopify store into new markets. 🎉

Remember it’s best to start with one new market at a time and stay close to home in the beginning — then, when you have your shipping, fulfillment and fees nailed, you can start looking into broader markets. 

Like any new business venture, you’ll face some challenges. But stay focused and before you know it, you’ll be sure to scale your global ecommerce store in no time. 

To learn more about Shopify and the newest developments in ecommerce, sign up for our free newsletter. You’ll get the whole scoop, with no spam.

How Much Is Your Amazon Business Worth?

‘How much is my online store worth?’

If you’ve ever asked this question, you’re not alone. 

Selling your store can have huge emotional and financial implications, so it’s important to keep an accurate and up-to-date estimate of exactly how much your business is worth. The problem is, without the right tools, assessing your store’s value is a complex task.

But it doesn’t have to be.

Our tool, Sellers Signals (or ‘Signals’ as it’s affectionately known), provides in-depth performance analytics in one central spot. Specially tailored for ecommerce sellers, Signals helps you gain clarity on your Amazon store’s overall health and value in a matter of minutes.

In this article, we’ll explain why an accurate business valuation is crucial and go into detail on how Sellers Signals can help you uncover your store’s value, fast.

The scoop on knowing what your store is worth

  • Why it pays to have a reliable business valuation for your Amazon store
  • Valuing your store and optimizing its value (with a little help from Signals 😉)
  • The best way to get a valuation for your growing Amazon store

Don’t want to waste hours manually calculating your Amazon store’s value? Let Sellers Signals work it out for you.

Why it pays to have a reliable business valuation for your Amazon store

Here are just a few of the top reasons why an accurate business valuation is crucial to building a futureproof ecommerce company:

  • Ecommerce is constantly changing: The ecommerce landscape is evolving fast — which means so are the trends that impact your store’s value. A real-time business valuation will ensure you are always in line with the market.
  • Valuations are a door opener: One of the most important things you can share with a potential buyer is a business valuation that shows your store is a great investment. Investors want to know how you are performing financially before they dig into the everyday workings of your store.
  • Manual valuations = costly errors: When you use manual tools for processes like these, it’s easy for errors to appear. A well-built business valuation reduces the margin of error, so you can say goodbye to inaccurate valuations that cost you money.
  • Get your store on (and off) the market faster: As a busy seller, you already have multiple tasks on your plate. You may find yourself having to rush your valuation, or even shelving the idea altogether. On the other hand, with a purpose-built tool to do the groundwork for you, you can save time and get an estimate of your valuation quicker.
  • Gain confidence and clarity: With an accurate and up-to-date business valuation at your fingertips, you can wave goodbye to the guesswork and gain the confidence and clarity that you’re on the right track. 👌🏽

Whether or not your end goal is to sell your business, your valuation should be your north star metric. This number summarizes your store’s performance and success of your business.

Valuing your store (with a little help from Signals 😉)

Assessing your Amazon store’s value is a complex task — and a basic Excel sheet just won’t cut it.

To get the job done accurately and efficiently, there’s really only one option: 

A digital business valuation tool that keeps you updated in real time.

Get a sense of your Amazon store’s value with Signals’ Business Valuation report

Sellers Signals combines SellersFunding’s proprietary models and expertise with your store’s data and manual inputs to give you an accurate estimate of your valuation.

Once your store is connected to Signals, we will automatically calculate your valuation using your marketplace data. Signals’ models combine your historical Gross and Net Sales with our forecasts for both metrics to provide you with a valuation range – a minimum and maximum value for your store. 

Through this report, you can quickly get a sense of your store’s value and track its evolution over time. Additionally, you can break down your valuation by currency (if you sell in multiple countries) and consolidate all your sales in USD to get a full picture.

Since this calculation only considers data we pull from your marketplace, it does not take into account variables such as Cost of Goods Sold (COGS) and Seller Discretionary Earnings (SDE), which are very important for the valuation. To complement the report, Signals has created a new tool to collect all the inputs that are missing in order to calculate a more accurate valuation. 

Signals’ New Valuation Tool 

Our new tool is for users who want to get a quick, real-time estimate of their valuation. The tool consists of a simple questionnaire that asks you for information about your store, mainly focused on financials, operations, and products. With these inputs, we will give you a new valuation range, which is solely based on your answers. You can easily access this tool inside the report, and review and update your inputs anytime.

In case you’re interested in selling your business and/or getting an offer for it, you can use the tool to share your intentions and asking price. We will help you navigate this journey by:

  • Understanding your needs and guiding you in the right direction
  • Explaining how you can maximize your valuation using Signals
  • Connecting you with potential buyers

Want to discover your Amazon store’s value? Use Signals to get an estimate, fast

“Being able to see how my company grows month by month, it’s huge. When I had another Amazon business, I couldn’t tell how much it was worth. Having this is a motivator and a north-star for my business” – Thiago Goncalves, Ceci Brands, Sellers Signals User

Optimizing your store’s value (with a little help from Signals 😉)

To maximize your valuation, you need to optimize your store’s performance. To do this successfully, you must clearly understand what is affecting it. 

Signals provides you a complete and organized view of your store so you understand how you are performing and make smarter, data-driven decisions that are going to boost your performance.

With easy-to-use reports, you can track your store’s key metrics and get valuable insights on how to improve them. By improving your performance, you will positively impact your store’s value.

Let’s explore how you can gain a clear picture of your store’s performance using Signals and how it can affect your valuation.

A hassle-free Profit and Loss Statement

A great way to highlight your store’s success is by showing a strong profitability and cash flow. 

That’s exactly where your Profit and Loss (P&L) statement enters the picture.

Your P&L gives you an in-depth look of your profits by breaking down your results into these 3 metrics:

  1. Gross Sales
  2. Net Sales
  3. Cashflow

Track your store’s success with Signals’ Profitability dashboard

From the moment you hit the P&L tab, Signals greets you with a detailed breakdown of your store’s current P&L statement without needing to do calculations yourself. You can also look through your store’s P&L for the last 12 months to uncover when your store performs the best, as well as any slow periods or key seasonality factors.

Now you can instantly compare your gross and net sales to keep your finger on the pulse of your store’s profitability (even when working with multiple currencies!).

Sales forecasts to predict future growth

No one can know the future, but with an accurate sales forecast, you can get pretty close. 

Sales forecasts help maintain optimal inventory levels and avoid costly overstocks and stockouts, so you can keep your store profitable and boost your valuation. 

If you are interested in selling your business, potential buyers and investors pay close attention to your sales forecasts, so this is one to keep an eye on from day one.

Assess your store’s scalability with Signals’ sales forecast report 

Whether you need to know how many sales you’ve got over a week, month, quarter, or year — Signals has you covered. Signals builds well-rounded sales predictions by using your previous sales data in its forecasting models — allowing you to easily gauge whether your sales are on the right track and set realistic expectations for any given time period.

Straightforward customer feedback to optimise your store

Customer opinions are vital for success — especially when you sell on marketplaces like Amazon where customer feedback can impact sales and ranking.

It might not be immediately obvious, but tracking customer feedback can come with huge rewards. Not only does it highlight your successes, it also shows where you can improve to secure even more sales and loyal customers. 

Plus, great customer feedback is a simple way to show potential buyers the value of your store and increase your chances of getting a premium multiple.

Easily track customer feedback

With Signals user feedback report, you can see what your customers really think, in just a few clicks. Analyse your positive vs. negative reviews each month and compare them to specific time periods or milestones. Plus, Signals enables you to predict your performance at the beginning of each month so you can estimate how much feedback your store can expect to collect.

Product performance analysis for a profitable portfolio

You’ve invested time and money into building your product portfolio. But do you know if they are performing well?

A product performance analysis gives insight into your portfolio by tracking all your ASINs in detail. But be prepared — monitoring your products manually can be a major undertaking.

Fortunately, there’s a solution for that too. 😉

Assess your portfolio’s profitability with Signals’ Products report

Every store has its winning products, slow movers, and rising stars. But when you have a high volume of products in your portfolio, it’s easy for some to go unnoticed. 

With the Signals’ Products report, you can reduce the chances of missing key product performance data by assessing your store, ASIN by ASIN.

Here are a few ways Signals can help you assess and prove the value of your product portfolio: 

  • Check your sales breakdown by product to identify your best (or hero) ASINs. Get a quick snapshot of the products that drive your sales so you can allocate your resources efficiently.
  • Get a full breakdown on the your products’ KPIs to ensure profitability:
  • Orders – The number of orders sold per product
  • Units – The number of units sold per product
  • Returns  – The number of units returned per product
  • Gross Sales – Your top-line sales per product
  • Ads Spent – Your advertising expenses per product
  • Net Sales – Your product sales minus refunds & chargebacks, Amazon fees, and advertising fees
  • Net Sales % – Your net sales divided by gross sales. It represents the % of total sales left after covering refunds & chargebacks, Amazon fees, and advertising fees.
  • Margin per unit – Your net sales divided by units sold (excluding returns)
  • Integrate your Amazon Ads accounts to view the performance of your campaigns. Get a funnel breakdown of your store’s impressions, clicks, and conversions to generate a 360-degree view on your products’ ads performance
  • See the real breakdown of your Advertising Cost of Sales (ACOS), Cost Per Click (CPC), and Return On Ad Spend (ROAS) and their impact on product success
  • Reveal your best-selling, trending and lagging products with Signals’ Products Impression Rank
  • Check out the product summary for a full breakdown on your Total Advertising Cost of Sales to show how many sales your ads brought in over the last 30 days

One simple metric that summarises the health of your store

The health of your store is a reflection of its value.

You could spend hours compiling financials, customer feedback, and awards — but imagine if you only needed one score to sum it up.

With Signals, it can be as easy as assigning your store a classic letter grade.

Quickly analyse your store’s health with the Visinger Score

Signals’ proprietary algorithm, the Visinger Score, uses key information on your Amazon store’s behaviour to analyse your overall performance, without compromising on accuracy. 

The Visinger Score ranges from 0-1000 with 5 categories ranging from Low to Excellent, with a corresponding letter grade from A to E. You can even check how your Visinger score has changed over time to see if your store is on an upward or downward trend.

The simplest path to boosting the value of your growing ecommerce business

As the ecommerce world changes and develops, there’s no doubt your store will too. 

To stay ahead of the game, it’s important to keep track of your store’s current performance and what you need to work on to increase and optimize it.

A powerful analytical tool like Signals is key to getting a complete blueprint of your store and making game-changing decisions that will drive your valuation upwards.

On top of that, Signals gives access to valuable resources and expertise that can take your business to next level:

Financial Solutions

A suite of funding, payment, and cash-management products tailored for sellers like you. Check if you’re eligible to receive any of them and apply directly through Signals.

Partners & Influencers

Tap into our vetted network of ecommerce service providers and influencers to find the expertise you need to address your growth challenges. Access exclusive deals as a Signals user. 

Need help valuing & optimizing your Amazon business? Let Sellers Signals do the heavy lifting.

How Does the Supply Chain Crisis Impact Your Cash Flow?(+ What to Do About It)

If there’s anything ecommerce owners have learned during these rocky past two years of selling in the pandemic, it’s that your inventory and supply chain logistics can make or break your profitability.

Sellers of all shapes and sizes are reporting reduced margins and cash flow due to increasing pressure on the supply chain. Yet 43% of small businesses don’t track their inventory, and more than 32% of ecommerce businesses cite “running out of cash” as one of the main reasons their business closed.

If you’re ready to put a stop to the supply chain madness and reclaim your profits, you’re in the right place.

We’ll reveal why inventory and supply chain logistics are bona fide revenue levers for your brand, and share actionable tips to help get your profits back on track — no matter what the future of the supply chain holds.

The scoop on supply chain meets cash flow

  • The impact of the supply chain crisis on seller cash flow
  • Supply chain logistics done right: The cash flow edition
  • Better cash flow means fewer supply chain headaches

Supply chain disruptions and long lead times can leave a big dent in your margins. Find out how SellersFunding can help stabilize your cash flow and get your inventory back on track.

The impact of the supply chain crisis on seller cash flow

When you’re scaling a growing brand, your biggest concerns tend to be getting products through the door — and selling them.

Forecast. Order. Sell. Rinse and repeat. 

But if recent history has shown us anything, it’s that the supply chain post-pandemic makes this process way more complicated than it used to be. 

In today’s unpredictable ecommerce climate — marred by chronic delays, costly disruptions, and spiralling lead times — aligning your supply chain logistics to your cash availability is crucial.

Let’s dig into some of the ways cash flow affects your supply chain, and vice versa.

Stock and freight costs can dry up your cash flow

It’s no secret that once you pay for products and shipping services, not only does your available cash take a hit — the capital is trapped in these goods until you can sell them. 

And with products stuck at ports all over the globe, the gap between purchasing inventory and selling it is getting bigger and more expensive by the second.

Considering most stores take 60 to 90 days to go from purchase order to stock on shelves, you could have a long wait before you see any return from these items.

And even if you’re in a niche where a 90-day wait seems doable, when you’ve got this scenario happening across multiple products simultaneously, it’s easy to find yourself in a cash flow crunch.

Fragmented supply chains + costly delays = waning margins

Whether your supply chain is disjointed due to a lack of product availability or additional safety restrictions, supply chain disruptions can only mean three things for your store money, time, and brand cred down the drain.

Not only does your store incur a huge opportunity cost due to stockouts, customers may come to view your brand as unreliable and switch completely if you can’t consistently provide what they need.

Look no further than the countless brands who have lost an astounding $4 trillion due to issues like the US-China trade dispute, Suez canal incident, and the resulting sharp rise in freight costs.

No matter which way you cut it, these disruptions can wreak havoc on your sales and cash flow. Without the financial resources to overcome these issues and get inventory back on track, your revenues could soon unravel.

Make supply chain your competitive advantage

The good news? It’s not all doom and gloom.

With supply chain issues being so widespread, those retailers who manage to get ahead of these challenges can also get one giant leap ahead of the competition.

By improving your inventory forecasts, getting a better grip on long lead times, and synchronizing your sales with your inventory availability — you can reduce stockouts and boost both your cash flow and margins.

Plus, you’ll save time and money, which you can pass down to customers through discounts and offers that build increased loyalty for your store at a time when many other brands are dropping the ball.

We know how easy it is for inventory and cash flow to become misaligned. Find out how SellersFunding can help you get back in sync.

Supply chain logistics done right: The cash flow edition

Once you understand why optimizing your supply chain ops is such an important sales issue, there’s no turning back. 

The next step is to take a firm hold of your inventory to streamline your supply chain and increase cash availability. 

Here are some of the steps you’ll need to take:

Drop the spreadsheets

Still using manual processes like spreadsheets and emails to track your inventory? We get it. 

It can be tough to let go of the tools that helped you in the early days of your store’s growth journey. But once you hit the $1 to $2 million mark, your store’s inventory and supply chain operation will involve many more moving parts — adding complexity to your business that manual tools simply can’t keep up with.

To unlock capital from your supply chain, let technology help. Look for an inventory and supply chain management system that can:

  • Produce accurate inventory forecasts
  • Unify your supply chain from end-to-end
  • Track stock levels and sales performance
  • Automate updating inventory levels, reordering, and alerts
  • Let you know in real-time when there’s an issue with your supply chain

Audit your inventory for cash-killing products

Deadstock and overstocks hold your capital hostage and create additional losses through things like long-term storage fees. 

To lighten your store’s cost load and improve your overall margins, sift through your data to uncover poor-performing or slow-moving products. Then look for ways to liquidate them. 

For example, you could:

  • Offer the product as a free or low-ticket add-on when shoppers spend a certain amount in store.
  • Open an outlet store on a high-traffic channel like Amazon or eBay.
  • Sell the slow-moving items in pallet loads to other stores or liquidators.
  • Host a mega sale with giveaways to attract attention.

If after all your selling efforts you still can’t shift the goods, consider writing off a portion of those products.

Zoom in on your costs 🕵️

As your business grows, it’s easy for redundant or unsuitable goods and services to become hidden in plain sight.

But these charges can add up. 

Make sure you’re getting the best value possible from each of your suppliers, 3PLs, and other supply chain stakeholders — and don’t be afraid to shop around for better deals. Look for any overlapping areas where you may have already paid for solutions that solve the same problem or task.

Some common areas where you may be able to reduce expenses include:

  • Manufacturing and suppliers
  • Product testing
  • Freight (sea, land, air)
  • Carriers and 3PLs
  • Warehousing
  • Packaging supplies
  • Accounting
  • Admin tools

Stagger production and launches to preserve more cash

Sometimes it’s not your supply chain, it’s how you’re managing your launches and restocks that affects your capital levels. Too many product drops could dwindle your cash flow, but so could too few replenishments.

To balance out supply and demand in your online shop:

  • Figure out what sells fast in your store. 
  • Align these disbursements with your stock ordering dates.
  • Negotiate with your suppliers and freight forwarder to have smaller orders sent out to you after your initial stockpile is shipped. 
  • Use discounted presales to launch new products, raise capital, and buy time to fit the order into your production cycle — without creating cash flow problems.

With the right approach to your production and launch schedule, you may be able to organically generate the cash you need to keep goods in transit while maintaining optimal cash on hand.

Actively look for ways to futureproof your store’s inventory

If there’s anything we’ve learned from the great supply chain crisis, it’s that the more productive and efficient your business is, the more money it’ll make and keep

Because like or not, your inventory has a massive impact on your cash flow. And the opposite is also true.

To get ahead of the game with your store’s inventory and supply chain operations, ask yourself these questions:

  • How can we use our supply chain to improve profitability? (For example, sending top-sellers to key in-territory warehouses for faster shipping.)
  • How can we shorten the time it takes to learn crucial supply chain tasks in our business? (E.g., manufacturing, packing for Amazon warehouse, etc.)
  • How can we improve the connection between all the points in our supply chain?
  • How can we increase ROI at every stage of our supply chain?
  • What actions can we take to make continuous improvements to our inventory and supply chain operations?

Better cash flow means fewer supply chain headaches

If you’re one of the thousands of sellers impacted by the truly historical supply chain disruptions brought on by the pandemic, know that you’re not alone.

Trying to solve the Rubik’s cube of staying in-stock year-round in the face of these unprecedented challenges can feel like a full-time job, in addition to all the other work you’re doing to grow your brand. 

Luckily, flexible funding can help bridge the gap between your next stock order and your next payout, so you can continue to scale without the supply chain and cash flow headaches.

With the SellersFunding Daily Advance, you can get up to 90% of your daily marketplace payouts, starting at just 0.5% of the advanced amount. Or, if a more long-term solution is what’s needed, Working Capital funding gives sellers access to up to $5 million with flexible withdrawals and terms up to 12 months.

Because your inventory and cash flow both play a crucial role in your success, but aligning the two can be a challenging task. And unfortunately, this is one issue that probably isn’t going away anytime soon.

Don’t let supply chain issues take the wheel. Get started on your inventory and cash flow strategy today and watch your ecommerce store thrive.

Cash levels not where they should be? Learn more about how SellersFunding can help.