For anyone paying attention, you could say Deluxy was destined for success from day one.
As a premium online wedding gift store, Deluxy's unique products stand out from the crowd on Amazon, with popular items like cute matching aprons and sleek wine carriers for newlyweds and engaged couples.
But it’s how they chose to scale their business that makes Deluxy extra special.
Since its launch in 2019, the premium wedding gift boutique wasted no time building their brand authority and ranking on Amazon.
The result? A huge competitive advantage.
In just two years, Deluxy went from fresh on the scene to a formidable player on Amazon, with high sales, thousands of stellar product reviews, and an active tribe of raving fans.
A strong position for a new brand. But by 2020, their success had caught up with them.
The Challenge: Dealing with Amazon's Volatile Inventory Limits and Payouts
With Christmas fast approaching, the Deluxy team needed to load up on stock to capitalise on growing product demand and secure their bumper Q4 sales.
But there was just one problem: Not enough cash flow.
Thanks to Amazon’s notorious payout pitfalls, Deluxy hit a financial tight spot that threatened to slow down their momentum.
Here are some of the issues they faced:
- Unpredictable Amazon payouts put a strain on cash flow.
- Capital constraints made it difficult to invest in inventory.
- Not enough cash flow to fund new projects while keeping the business afloat.
- Amazon's inventory limit changes led to increased warehousing and fulfillment costs.
"Since we get paid every 14 days, our cash was tied up, especially considering the amount we hold in reserve. So, it put stress on our cash flow. We've also been getting used to the inventory limits and restrictions that Amazon has imposed on sellers. We started working with a 3PL and opened up our own warehouse."
All of these things demanded increased capital, and fast.
Faced with a difficult situation during one of the most critical times on the eCommerce calendar, Deluxy decided it was time to call in reinforcements.
The Solution: A Lightning-Fast Ecommerce Funding Solution
To turn their cash flow around, Deluxy’s co-founder began hunting for a suitable eCommerce funding provider.
"We had to place a lot of orders for Q4 last year, and that's when I started looking for funding to be able to purchase all of the inventory."
Deluxy’s team tried traditional funding options like a credit line and an SBA loan — but they soon realised the slow application process meant they could never be long-term funding solutions.
Then they found SellersFunding.
SellersFunding's Daily Advance was just what Deluxy needed to get fast payments and overcome their Amazon-related hurdles.
"SellersFunding gives quick access to cash. You don't need to remember to pay every month or do a wire transfer. It's automatic. Plus, it’s really fast. The money gets deposited into the account the next day."
The Daily Advance Difference
Daily Advance sellers see an average 75% increase in growth. This is huge, and you don't want to miss out. Keep reading about Daily Advance to find out how it can help you increase sales
Fees from 0.25 to 2%
Up to 90% advance rate
Up to 2% Cash Back
on Business Card
No credit score impact
Available in USD, CAD,
GBP, EUR for US, Canadian
and UK companies
The Results: Unstoppable Growth and Stress-Free Investing
Since Deluxy found its perfect match with SellersFunding, the Amazon store has soared to new heights.
No longer dependent on Amazon disbursements, they can now confidently plan their future investments.
Here are just some of the wins Deluxy has scored with a little help from SellersFunding:
- Expanded product range
- Stayed sufficiently stocked
- Sourced new products
- Increased market share
Deluxy's partnership with SellersFunding also means they can take on new opportunities stress-free, without having to worry about where cash will come from, whether they'll get enough capital in time, or if Amazon will throw any other surprises their way.
Switching over to SellersFunding helped Deluxy stabilise its cash flow, stay in stock and invest in new products. And from here, the future is nothing if not bright and profitable.
"Thanks to SellersFunding, we've been able to continue scaling while keeping all of our products in stock.”