When it comes to selling online, having enough funds on hand is almost as important as having enough energy to get to the seventh hakafa on Simchas Torah.

Even the best online sellers experience decreases in sales and supply-chain complications which can impact cash flow, but sometimes the need for more funds is driven by opportunity. 

So, what are some of the financial challenges faced by online sellers, and how can you overcome them to increase your chances of hatzlacha? Let’s dive right in.

Challenge #1: Delays in Marketplace Payouts

Whether you’re selling on Amazon, Walmart, or one of the many other marketplaces out there, most cash flow problems result from delays between the point of sale and the marketplace payout of your earnings.

Even though the sale itself happens quickly, with some orders being purchased, shipped, and delivered in the span of only a day or two, it can take much longer to see the funds hit your bank account. Meanwhile, as you wait for your profits, you still must cover your inventory, marketing, fees, and logistics costs.

Challenge #2: Inventory Demands to Expand Your Business

Another common reason for cash flow issues is the inventory struggle. Unless you’re drop-shipping, you need to buy your inventory in order to have products to sell. If you can get that inventory at a discounted bulk price, you’ll want to do that, and a steady and reliable cash flow is crucial to take advantage of those opportunities.

This sounds easy enough in theory, but when you remember the delays between the sale and the payout from the marketplace, this challenge can be a difficult one, especially for new sellers. Even after all the profits land in your account, there’s a limit to how much growth you can achieve.

Let’s use Eli as an example:

Eli has been selling clothing online for years and specializes in children’s clothes. Eli knows that he will sell a lot more in August and September as parents get new clothes before the school year approaches, but he can only buy as much inventory as his profits will allow.

If Eli wanted to try and take advantage of a supplier deal on shofars and kittels to prepare for Rosh Hashana in September as well, he’ll need more funds and because of marketplace payout delays he will not get those funds until it is too late. Everything is delayed, including his earnings, and now he needs to get more of the right inventory ­­– that’s the cash flow problem.

The same is true no matter what you are selling, from toys and clothing, to electronics and other goods. So, how can sellers like Eli (and you!) grab the opportunity of an upcoming peak consumer spending season and cash in on potential sales?

Solving the Cash Flow Problem

To solve the cash flow challenge and enable online sellers like you to take advantage of potential growth opportunities, Payoneer is offering the Yeshiva World community a new approach to easing their cash flow – the Capital Advance program.

Payoneer’s Capital Advance can help you grow your business by offering short-term cash boosts that can help with day-to-day needs and inventory costs. As your accepted Capital Advance offers are settled, you can become eligible to receive larger cash injections to really kick business growth into gear.

Although the size of the offers you may receive will depend on your online store’s sales performance, all working capital offers include three great features that make Capital Advance the ideal cash flow management solution:

1.     Instant funds with no credit checks
Payoneer extends working capital offers based on your marketplace sales history and you can get the funds in your Payoneer account with just a few clicks.

2.     Gradual settlement from marketplace sales
Once you accept the offer, Payoneer will collect a portion of your future marketplace sales. After an offer is completely settled, a new offer will follow it, subject to eligibility requirements.

3.     One low, fixed fee
There’s nothing worse than the surprise fees, hidden costs, and interest that are often associated with bank loans which can really impact your bottom line. With Payoneer, there’s no interest and you’ll only be charged one fee which you’ll see before you accept the offer.

So if you are looking to grow your eCommerce business, click here to learn more about working capital.