The Ins and Outs of Marketplace Expansion

Posted on by Amanda Levine

Online retail is only getting bigger every year. Worldwide, e-commerce retail sales will reach an estimated $6.42 trillion in 2025, up 6.86% from total e-commerce retail sales in 2024 ($6.01 trillion).

If you own a successful eCommerce business, you may wonder about your next steps. The first place you may look is marketplace expansion, but this strategy is more complex than it may seem. 

There are different types of business expansion, and the strategy you choose depends on your niche and buyer demand.

What Is Market Expansion?

Marketplace expansion is the act of selling your items in a different market. Businesses reach this point when they fulfill all goals and needs in their current market and are looking to expand their business further.

Market expansion can accomplish numerous goals. For example, businesses have the opportunity to generate more revenue and brand awareness.

This strategy brings many rewards but also comes with its risks. When planning your strategy, businesses should identify the best opportunities and find the most reliable market expansion partner. 

Types of Marketplace Expansion

There are multiple directions a business can take during marketplace expansion. While marketplace expansion can vary due to niche and customer demand, most eCommerce stores use one or more of these strategies.

Retail

Retail is one of the first options for a market expansion strategy. Let’s say you sell your products on one marketplace, such as Amazon, you may decide to expand to Walmart. This is an easy way to increase sales, widen your reach, and take advantage of another platform’s benefits.

Before expanding to a different retail platform, ensure you never signed an exclusivity agreement with your current marketplace. If you never did, you’re free to sell your products elsewhere. It’s still best to conduct research before selling in a new marketplace to ensure your business remains competitive while still attracting your target audience. 

Product

There are a couple of ways to go about a product expansion. The most obvious answer is adding new products to your inventory. But brands can also embark on a product expansion strategy without adding anything new.

close-up of a woman applying hand cream

For some brands, a product expansion encompasses new ways of advertising their items. This can include highlighting different features of an existing product or adding new graphics. 

By changing a product’s advertising, you not only increase awareness but engage existing customers.

Another common market expansion example is revamping a current product. Some brands may even add additional perks to an existing product, such as better insurance or warranties.

Geographical

Many eCommerce businesses look to geographical expansion when they want to attract new customers and gain more sales. While the internet may help us connect to a global user base, logistics issues can cause hurdles when buying internationally. 

There are numerous resources for brands to sell their items in different countries, such as Amazon Global Selling. But before expanding internationally, businesses must sell in countries with both an opportunity and demand. 

Brands will also need to consider certain best practices, such as language, legislature, and advertising. Ecommerce companies must also look into logistics, such as supply chain management and local warehousing and shipping. A global accelerator service can help with all these tactics.

Vendor and Supplies

Marketplace expansion can also include working with new vendors, such as suppliers and wholesalers. 

This can result in market growth for various reasons, such as the ability to offer new products or increase supply chain efficiency with remote fulfillment. Working with new or varied suppliers can also produce better product quality or more variety.

warehouse racks with boxes

When Should You Expand Your eCommerce Business?

Even if your brand and products are successful, timing is everything regarding marketplace expansion. Here are signs that you’re ready to expand your eCommerce company.

You Have the Funding

Even if your business generates impressive sales, you shouldn’t expand your company unless you have the capital. 

Depending on your expansion type, you’ll need funds to create new products, reinvent existing ones, hire new employees, and for advertising/marketing. There’s also the risk that your strategy will fail, so having leftover funds will ensure you can keep your business afloat.

Businesses can always receive funds in the form of working capital, inventory funding, and more.

You’re Behind the Competition

If your competitors are launching in a new market, this is a good sign you should follow suit. For example, maybe you see your main competitor is expanding to a new country, so you can start putting an international seller plan together. 

When you don’t keep up with the competition, you risk getting left behind, so it’s vital to always keep up with your competitors.

Supply and Demand Impacts

If sales are increasing and your customers continue returning, this is a sign you need to invest in your product strategy. The way you approach this strategy depends on consumer demand. For example, if you’re expanding your product catalog, it’s a good time to find new suppliers.

Need to Scale Your Business

Your marketplace expansion may not always be about making more money, keeping up with the competition, or satisfying consumers. Marketplace expansion offers many benefits, including the ability to scale your business model. 

If you’re concerned about your current strategy, investing in a scalable supply chain solution or changing your retail marketplace makes sense.

Tips When Creating a Marketplace Expansion Strategy

If you think marketplace expansion is right for you, you’ll first need to ensure your strategy is successful.

Analyze the Competition

Before choosing the best marketplace expansion strategy, conduct research to see what your competitors are doing. 

Determine their marketplace strategy and if they’re generating results. If they’re attracting a larger audience and generating more sales than you, it’s best to implement their tactics into your strategy. 

This will not only improve your chances of increased brand awareness and revenue, but will also make you a more competitive business. 

Conduct Market Research

In addition to analyzing the competition, you’ll want to know what your customers want. 

Research your market and what they’re demanding from you. This can offer several tactics: you can think of a new product idea, expand your retail platform, try cross-border eCommerce, or improve your current inventory. 

Customer research not only ensures marketplace expansion success, but you can make better business decisions and avoid any potential losses. 

Invest in Marketing and Advertising

Marketing and advertising is a key factor in generating more online sales. The right marketing and advertising strategies can also help ease you into your marketplace expansion. 

For example, let’s say your business expanded your inventory. You can promote this on social media to engage your current audience and attract new buyers. 

Certain expansion tactics, such as selling on a new marketplace, will require a marketing overhaul. For example, if you were selling on Amazon and are now also selling on Walmart, you’ll need to apply Walmart SEO tactics to your listings.

Take Advantage of Various Marketplaces

An easy way to accomplish different expansion techniques is by taking advantage of different marketplaces. While Amazon is a major player, they’re not your only option. Some other platforms you can sell on include:

All of these platforms let you take full control of your listings. You can write your own product descriptions and upload media. Many marketplaces also offer tools where you can manage your inventory and listings.

Create a Successful Marketplace Expansion Strategy

As a successful online retail brand, it may be difficult to know your next move. Marketplace expansion is usually the answer for most businesses. 

You can expand your business by retail platform, inventory, product development, geographical location, and even by vendors. 

Before creating your expansion strategy, analyze the competition, conduct market research, invest in marketing and advertising, and look into different retail platforms.

How to obtain financing for your Skincare brand

Posted on by Amanda Levine

Skin care brands often pursue financing as a means of growth. With the beauty industry booming, we’re here to support your dream while improving the lives of your customers. Here’s what you should know about financing for skin care brands. 

What are the common financing options available for skin care brands?

Skin care businesses can come in many forms. From online storefronts run out of one’s home to nationwide retail corporations. Here at Kickfurther we focus on small businesses so we will tailor our best advice to what we know and do best. Small businesses can encounter a unique set of challenges when it comes to financing, and for that matter, operations in general. As a small business owner you know how important creative solutions are. When it comes to inventory we have an innovative solution to make funding affordable. but you may need financing for other activities too. 

Do you do more than skin care? Learn more about the umbrella of beauty business inventory financing. Plus, you can access the types of financing listed above as they are not exclusive to skin care businesses. 

Benefits of financing for skin care brands

Skin care businesses boast relatively low cost of goods sold, creating opportunity to have a high ROI per unit. However, as with most CPG brands (consumer packaged goods) there’s a lag between sales and accounts receivable. The downstream impact of this is a cash flow battle. How do you keep up with operations and stocking inventory without dipping too low (or negative) on cash? How do you invest more in growth while keeping up with the current state? One way to accomplish this and more is to utilize financing. In a nutshell here are some high level benefits of financing for skin care brands.

  • Invest more in marketing, packaging, and other activities that will grow your brand 
  • Increase staff so you can provide better customer service 
  • Stock more inventory to keep up with growing sales
  • Perform more research and development to better meet the needs of consumers 
  • Expand your business 

The common theme of all of these benefits is the opportunity to grow. You’re an expert at glowing skin, share that passion with the world and reflect the same glow on your business. 

How do I determine the amount of financing needed for my skincare brand?

Determining how much financing needed can be a complicated metric, as nothing will likely ever seem like enough. The idea of more cash can inspire a whole revolution of ways to grow your business that you’ve only dreamed of becoming possible. With that being said, we recommend strategizing exactly how the funds will be used. From there it can be easier to define the appropriate amount. You should also consider how the funds are to be repaid as this can support what you can afford to borrow. When you think about how much money to borrow you want to think long-term and in growth mode, but you always want to ensure you don’t take on more than you can handle. 

Can I obtain financing if my skin care brand is a startup or in the early stages?

Small businesses, particularly in the startup or infant stages, can struggle to obtain financing. Most lenders and even alternative sources will want skin care businesses to meet a set of minimum requirements. If you have established sales, which you may as a startup or new business, you can have a better chance at qualifying. At Kickfurther we work with skin care companies that have a minimum of $200,000 or more in trailing 12 months revenue. This does not mean you need to be in business for 12 months though, but rather we will review a 12 month snapshot – whatever that consists of. We consider net sales which we define as gross sales minus returns. fees, allowances and discounts. 

Are there specific financing options available for eco-friendly or sustainable skincare brands?

A round of applause for skin care brands prioritizing the environment and health of humans. While some sources may be more enticed to lend to a brand with relatable values, you can access the same financing options as other skin care brands. Alternatively there may be grants available that focus on skin care brands that are eco-friendly and or sustainable. 

How can I increase my chances of securing financing for my skincare brand?

To increase your chance of securing financing, work with the right partner. Before applying, invest the time into understanding the requirements you’ll need to meet to qualify. Preparing for financing is equally as important as choosing the right financing option. 

What are the potential challenges or obstacles when trying to secure financing for a skincare brand?

There are two main potential challenges:

  1. Meeting the requirements
  2. The cost

At Kickfurther we aim to help you around both of these challenges for inventory financing. With our creative funding solution, you can say so long to the complicated traditional business loan application process and tap into that creative side of yours. Create an online profile that allows our community of backers to buy into your mission with you. In financing, there is a way for both parties to win. At Kickfurther, our funding solutions are up to 30% cheaper than comparable options. 

Are there any alternative financing options specifically tailored for skin care brands?

Alternative financing options seem to be a lifeline for small businesses, including skin care brands. From crowdfunding to Kickstarter, you’ve probably heard of plenty alternatives. As a business owner though, you’re busy – we get it. There’s a lot to be aware of with alternative means of financing. If traditional methods of financing aren’t playing on your team, consider our alternative for inventory funding. It’s straightforward and designed by small business owners for small business owners. No double edged sword here. 

Our value proposition is simple. . .

  • No immediate repayments. You control repayment. Don’t pay until your product sells.
  • Non-dilutive. Maintain equity in your business, we know how hard you worked for it. We are here to work with you, not against you. 
  • Not a debt. Because you have enough financial strain, this is not a loan. 
  • Upfront capital. Pay suppliers faster with upfront capital, there when you need it! 

How Kickfurther can help

Kickfurther funds up to 100% of your inventory costs on flexible payment terms that you customize and control. With Kickfurther, you can fund your entire order(s) each time you need more inventory and put your existing capital to work growing your business without adding debt or giving up equity.

Why Kickfurther?

  • No immediate repayments: You don’t pay back until your new inventory order begins selling. You set your repayment schedule based on what works best for your cash flow.
  • Non-dilutive: Kickfurther doesn’t take equity in exchange for funding.
  • Not a debt: Kickfurther is not a loan, so it does not put debt on your books. Debt financing options can sometimes further constrain your working capital and access to capital, or even lower your business’s valuation if you are looking at venture capital or a sale.
  • Quick access: You need capital when your supplier payments are due. Kickfurther can fund your entire order(s) each time you need more inventory.

Kickfurther puts you in control of your business while delivering the costliest asset for most CPG brands. And by funding your largest expense (inventory), you can free up existing capital to grow your business wherever you need it – product development, advertising, adding headcount, etc.

How to Protect Your Amazon Listings from Hijackers, Search Suppression, and More

Posted on by Amanda Levine

Selling on Amazon is hard enough even if everything goes smoothly. But what if it doesn’t?

A competitor might jump on your listing with a counterfeit product and gain a bunch of negative reviews…that reflect poorly on the real item, too. Amazon could mistakenly flag your item as an adult product, making it ineligible for advertising. Or an innocent but ignorant competitor could try to optimize the listing details but make them much, much worse. If the listing is too sloppy or inaccurate, it might even get search suppressed or deactivated by Amazon, compounding the problem. Or, you might have a crazy week, forget to restock one of your SKUs, and lose sales as a result.

What can you do about all these issues? Aren’t they just part of doing business on Amazon? Sort of, but it’s important to be aware of them as soon as they happen so you can resolve them quickly. Let’s talk about a few different categories of issues and how to protect your Amazon listings from them.

Protect Your Search Rank and Visibility

The vast majority of Amazon purchases are made because a buyer searches for a keyword and finds a listing near the top of the search results that meets their criteria. So, your listing needs to stay optimized and be easy to see in search results.

Search suppression makes your listing invisible in search results, resulting in lost sales. Amazon suppresses listings for a variety of reasons, such as images or text that violate their listing requirements, missing information, titles that are too long, and more. To see whether any of your listings are suppressed, go to the Manage Inventory page in Seller Central and click on “Search Suppressed and Inactive Listings,” if it’s there. (If it’s not there, congratulations! You have no search suppressed or inactive listings right now!)

On that page, you will see the reason for suppression and be able to fix it. Check back 24 hours later to see whether the listings have disappeared from the page, or have another problem to fix. (Sometimes a listing is suppressed for several reasons at once.)

Similarly, products that Amazon has flagged as “adult” on the back end will not be shown in regular search results for non-adult products. They will also be ineligible for advertising. So, if your product is not an adult product, you’ll want to make sure it’s not flagged as one! 

Sometimes, this happens when Amazon’s algorithms misinterpret a keyword or something else in the listing. Sadly, Amazon doesn’t notify you when they flag a product as “adult,” so you’ll have to keep a close eye out for other clues. If you find that sales have tanked or you can’t advertise a product anymore, check the listing for any words or keywords that could be misinterpreted as adult.

Protect Your Buy Box and Inventory Levels

If a buyer lands on your listing via a search, they might still run into a problem if your listing is inactive or the Featured Offer (Buy Box) is suppressed.

A suppressed Buy Box happens when the “Add to cart” and “Buy now” buttons are removed from the listing and replaced by smaller text that says “See all buying options.” Amazon does this when none of the sellers’ offers for this product are eligible to be the Featured Offer. This can happen even when you are the only seller on the listing. But most purchases are made through the Buy Box, and shoppers don’t find “See all buying options” quite as appealing as “Buy now,” so a suppressed Buy Box can hurt your sales.

To get the Buy Box back, you’ll need to check that everything about your listing is compliant, your Account Health metrics are good, your estimated shipping speed is accurate, and your price is competitive (meaning it aligns with similar products on Amazon and your product on non-Amazon websites).

If the Buy Box is replaced with a message that says “This product is unavailable,” or something similar, your listing is now inactive. Amazon can deactivate a listing for some of the same reasons that would cause it to be search-suppressed. So again, make sure every detail is fully compliant with Amazon’s listing guidelines. Also, the listing will be deactivated if the product is out of stock. Keep an eye on dwindling inventory and restock in time to capture all the sales!

Protect Your Listings from Hijacking and Counterfeits

A well-selling product is a magnet for black-hat sellers, who may counterfeit the item or hijack the listing.

A counterfeit product is a knockoff, usually of much lower quality and priced lower. Manufacturers sometimes create a lookalike and sell it as an additional offer on the same listing, winning the Buy Box with their lower price and capturing the majority of sales.

If you notice a new competitor who looks suspicious, try a test buy to see whether they got some of your real product or created a fake. If the item is fake, you can open a case with Amazon to have the seller removed. You’ll need to document how you know the product is counterfeit, including photos, to support your case.

If you are the brand owner of the product and the competitor is also using your logo or other intellectual property, you can report copyright infringement or trademark violations to Amazon as well. In addition, you can send a formal cease-and-desist letter to the other seller, and finally, if necessary, you can seek legal help.

Hijacking is a little different. A hijacker attempts to change the listing details, possibly to make them non-compliant with Amazon’s policies and trigger a search suppression or adult flag so that buyers are forced to choose a different listing (the hijacker’s). Or, the hijacker might try to convert the listing completely over to a new product they are selling, while keeping the positive reviews you worked so hard to gain.

Of course, these actions are not allowed by Amazon either. If another seller updates a listing with information that’s inaccurate about the product, gather supporting evidence—e.g., screenshots from the manufacturer’s website—and submit a case.

If you own your brand, make sure you are enrolled in Amazon Brand Registry, which allows you to keep control of the content of your listing and makes it easier to report intellectual property violations.

Protect Your Product’s Reputation

As mentioned, a counterfeit product could lead to a bunch of negative reviews on your listing. But so can ordinary issues that really are your fault—no offense!—unless you resolve them and keep buyers as happy as possible.

Make sure your listing is clear and precise, so buyers know what they’re receiving and aren’t surprised. Make sure your restocking process is organized to minimize mistakes—whether shipping the wrong product yourself or mislabeling items that are headed to FBA. Make sure your customer service is excellent, so you’re ready to turn things around as soon as your buyer expresses dissatisfaction.

Once the majority of your buyers are as happy as possible, you can safely ask them to leave reviews on the products they purchased and feedback on their shopping experience, using the Request a Review button by each order in Seller Central, or a tool that automates the message. Having plenty of positive feedback and reviews will ensure that the occasional negative doesn’t destroy your reputation as a seller.

If you have Brand Registry, you can even contact buyers who leave a negative review, offering a refund or replacement.

And if you notice too many negative reviews that look suspicious, this might be another way that a hijacker or competitor is attacking your listing.

Get Notified and Fix Issues Quickly

If it sounds overwhelming to monitor all these possible issues 24/7, you’re not alone. It’s a lot to manage, but software can help you by automatically monitoring all your listings day and night and notifying you right away when there are any changes. 

SellerPulse by eComEngine alerts you when a new offer appears on your listing, images or other listing details are changed, Amazon flags a product as “adult,” the Buy Box gets suppressed, the item goes out of stock, and more. Plus, you can add a review monitoring package to get alerts about new product reviews. With a 14-day free trial and a five-minute setup process, you have nothing to lose by trying it out today!

The Pros And Cons Of Leasing Vs Purchasing Warehouse Space

Posted on by Amanda Levine

Ensuring you have a functional and stable place to run your business is important. Most business owners at some point, will compare leasing versus buying warehouse space. While buying warehouse space offers your business another asset that will likely appreciate in value, there’s always a downside to consider too. Stay tuned as we compare leasing versus buying warehouse space. 

The Pros of Leasing Warehouse Space

Leases are often easier to qualify for than loans to purchase. While selection may be limited for warehouses for leases and warehouses for purchase, when you lease you risk losing the space you depend on. Moving an entire warehouse is a huge chore. However, there are upsides to leasing too, such as not being responsible for maintenance and repairs and not having to fork over a lump sum of cash for a down payment. Here are some of the pros of leasing warehouse space. 

Lower upfront costs:

  • When you lease a warehouse you typically have to provide a down payment, but this is usually much less than a down payment for a loan to purchase a warehouse.

Flexibility:

  • When you lease a warehouse, you have the flexibility to move locations as you choose. While you may have to break your lease, you will not have to worry about what to do with the space you leave behind.

Tax Benefits:

  • Leasing can offer many tax benefits, just as owning a warehouse can. Lease payments and other related expenses can be tax deductible. Consult your tax specialist for specifics on the tax benefits you are eligible for if you lease a warehouse. 

The Cons of Leasing Warehouse Space

Higher monthly costs:

  • Lease payments may be higher than loan payments. Alternatively, if you pay cash for a warehouse you purchase, you will deplete valuable cash flow. While you may pay more to lease, and never recoup that money spent, there are usually lower upfront costs associated with securing the lease. 

Less control:

  • With a lease, you have a landlord to report to. You may be restricted from making modifications to the warehouse that would benefit your business. Additionally, you don’t have a say over when the lease is over or when rent increases. While you may be able to negotiate terms with the landlord, ultimately, it’s up to them what is allowed. 

Uncertainty:

  • Business ownership comes along with plenty of uncertainty. Therefore, when avoidable, you may want to avoid more of it. Leasing a warehouse can present uncertainties such as the lease being ended suddenly. 

The Pros of Purchasing Warehouse Space

Investing in a warehouse you own can come with a huge upside. It can give your business activities a whole new avenue; real estate. Rather than paying money every month to a landlord, you can pay it toward a warehouse or investment that you own. From more stability to an asset you can liquidate, there are pros and cons associated with purchasing a warehouse space. 

Ownership:

  • Owning real estate is a worthy investment in most cases. When you own a warehouse, you can confidently build it out just as you want it, knowing that no one can make you move. You can also enjoy a monthly payment that will only fluctuate in the case you have a variable interest rate. 

Long-term stability:

  • When you own your warehouse space you can build with confidence. There’s no short-term lease agreement or threat of losing the space when you own it. As a result, you can invest more in building it out exactly how you want it and operate with more confidence. 

Potential for equity growth:

  • Real estate can present the opportunity for a solid ROI. When it’s time to sell the warehouse or free up cash flow, you can hopefully profit. Alternatively, if you need to borrow money while you own the warehouse, you can leverage the equity in the warehouse. Having equity in assets can also make your business look more appealing on paper. 

The Cons of Purchasing Warehouse Space

Higher upfront costs: 

  • Purchasing a warehouse usually means taking out a loan. If you take out a loan, you will likely need a significant down payment to qualify. Additionally, if you pay cash you can carve out a lump of cash that you may need down the road to grow your business or simply just maintain healthy cash flow. 

Less flexibility:

  • When you own a warehouse space, it’s harder to move to a new space when you decide the current space isn’t enough or you’ve outgrown it. 

Tax implications:

  • Just as leasing can come with tax benefits, owning a warehouse can too. Taxes can be more complicated if you own a warehouse. In either case, you should consult your accountant to determine the tax perspective of owning versus leasing a warehouse. 

Closing thoughts

The decision to lease versus own a warehouse is one to take seriously. Consider upfront and monthly costs as well as what locations are available. Investing time to find just the right space, whether you lease or buy can help set you up for success long term. If you choose to purchase or rent, there are upfront and long-term costs associated, both of which can impact your cash flow. Inventory financing is one way to help offset cash flow challenges while ensuring you have enough inventory to grow your business and turn a profit to cover that warehouse you worked so hard to get. 

How Kickfurther can help

Kickfurther offers businesses a unique funding solution that’s flexible and affordable. Fund up to 100% of your inventory at Kickfurther with no immediate repayment. 

No immediate repayments: You don’t pay back until your new inventory order begins selling. You set your repayment schedule based on what works best for your cash flow.

Non-dilutive: Kickfurther doesn’t take equity in exchange for funding.

Not a debt: Kickfurther is not a loan, so it does not put debt on your books. Debt financing options can sometimes further constrain your working capital and access to capital, or even lower your business’s valuation if you are looking at venture capital or a sale.

Quick access: You need capital when your supplier payments are due. Kickfurther can fund your entire order(s) each time you need more inventory.

Kickfurther puts you in control of your business while delivering the costliest asset for most CPG brands. By funding your largest expense (inventory), you can free up existing capital to grow your business wherever you need it – product development, advertising, adding headcount, etc. As a result, you can have more capital to put toward owning your warehouse if you choose. 

How to plan your cash flow when your eCommerce business is seasonal

Posted on by Amanda Levine

Inventory financing, an important component of cash flow management for seasonal eCommerce businesses, allows for inventory stock up in advance of high-demand periods.  Cash flow planning and eCommerce financing are indispensable tools for eCommerce seasonality, providing the financial stability and flexibility needed to navigate successfully through the seasonal highs and lows. Kickfurther, the first online inventory financing platform, caters to the cash flow and inventory financing needs of seasonal eCommerce businesses. furnishing them with the capital to purchase inventory, ensuring a dependable cash flow, and distributing the risk among a supportive community of backers.

Importance of planning of cash flow for seasonal eCommerce businesses

Cash flow planning is essential for the survival and prosperity of seasonal eCommerce businesses. It enables them to navigate the challenges of seasonality, optimize resource allocation, and maintain financial stability throughout the year, ultimately leading to sustained growth.  Cash flow planning is important for seasonal eCommerce businesses for the following reasons:

  1. Managing Seasonal Variability: Seasonal eCommerce businesses experience significant fluctuations in sales and revenue throughout the year. Effective cash flow planning helps them anticipate these peaks and valleys, ensuring they have sufficient liquidity to cover expenses during slower periods and capitalize on high-demand seasons.
  2. Inventory Management: Seasonal  Businesses need to stock up on inventory well in advance of their peak season and know how to handle seasonal products on eCommerce. Cash flow planning enables them to allocate funds for inventory purchases and negotiate favorable terms with suppliers.
  3. Marketing and Advertising: Marketing and promotional activities play a crucial role in driving seasonal sales. Cash flow planning allows businesses to allocate resources for marketing campaigns, advertising, and promotions to maximize their reach and impact during peak seasons.
  4. Staffing and Labor Costs: Seasonal businesses may need to hire additional staff during busy periods. Cash flow planning helps them budget for labor costs, including salaries, wages, and temporary personnel, ensuring they have the workforce needed to meet customer demand.
  5. Operational Expenses: Beyond inventory and labor, seasonal eCommerce businesses have ongoing operational expenses such as rent, utilities, insurance, and technology costs. Cash flow planning helps them allocate funds for these fixed and variable expenses throughout the year.
  6. Loan and Credit Management: Some seasonal businesses may need to secure loans or lines of credit to bridge cash flow gaps during slower seasons. Effective planning helps them determine when and how to access credit and manage repayment schedules.
  7. Supplier Relationships: Maintaining good relationships with suppliers is essential for securing timely deliveries and favorable terms. Cash flow planning allows businesses to honor payment agreements and negotiate mutually beneficial terms with suppliers.
  8. Debt Repayment: If a seasonal business has existing debt obligations, cash flow planning ensures they can meet debt repayment schedules without straining their finances during low-demand periods.
  9. Emergency Funds: Unexpected expenses or disruptions can occur at any time. Cash flow planning enables businesses to set aside emergency funds or establish lines of credit to address unforeseen challenges without jeopardizing operations.
  10. Strategic Growth: By effectively managing cash flow, seasonal eCommerce businesses can reinvest profits into strategic growth initiatives. This may include expanding product offerings, entering new markets, or improving customer experiences to drive long-term success.
  11. Tax Obligations: Seasonal businesses must account for their tax obligations, including income tax, sales tax, and payroll tax. Cash flow planning helps them set aside funds for tax payments and avoid penalties or interest charges.
  12. Profitability Assessment: Regular cash flow analysis allows businesses to assess their profitability during peak and off-peak seasons. This insight helps them make informed decisions about pricing, product offerings, and cost management.

How to plan your cash flow when your business is seasonal.

Seasonal eCommerce businesses can proactively plan their cash flow, ensuring they have the financial stability and flexibility to thrive during peak seasons while effectively navigating the challenges of slow periods. Here are a few best practices: 

Identify the peak and slow seasons for your business.

  • Understanding when your business experiences high and low demand is the first step in seasonal cash flow planning. By pinpointing these periods, you can allocate resources, adjust inventory levels, and plan marketing campaigns accordingly.

Forecast the 12 months.

  • Create a detailed 12-month cash flow forecast that includes revenue projections, expenses, and expected cash flow fluctuations. This forward-looking approach allows you to anticipate cash flow gaps and take proactive measures.

Diversify your income streams.

  • Explore opportunities to generate income beyond your primary seasonal business. For example, if you operate a summer-oriented business, consider offering complementary products or services during the off-season to maintain a consistent cash flow.

Forecast your cash flow.

  • Develop a cash flow forecast that outlines your expected income and expenses on a month-by-month basis. This tool helps you visualize your financial future, identify potential challenges, and plan for necessary adjustments.

Manage your inventory.

  • Efficiently manage your inventory to avoid overstocking or understocking during peak and slow seasons. Negotiate favorable terms with suppliers, implement just-in-time inventory practices, and consider seasonal storage options to control costs.

Control your expenses.

  • Evaluate your fixed and variable expenses to identify areas where cost savings are possible. Implement cost-control measures, negotiate with vendors, and consider streamlining operations to maintain healthy cash flow.

Get financial help if needed.

  • In anticipation of cash flow challenges, explore financing options such as lines of credit, business loans, or working capital loans. These financial tools can provide a safety net during slow seasons and support business growth during peak times.

Closing Thoughts

Proper cash flow planning ensures that businesses have the financial stability to operate smoothly during slow periods, covering essential expenses. It also enables strategic allocation of capital, whether for seizing opportunities during peak seasons or diversifying product offerings to generate income during slower months. This enhances competitiveness leading to higher customer satisfaction and repeat business. Cash flow planning can strengthen relationships with suppliers because timely payments and consistent orders lead to favorable terms and pricing. For businesses that want to achieve growth, cash flow management and e-commerce financing are important for assessing the financial feasibility of expansion strategies.

How Kickfurther can help

Kickfurther is the world’s first online inventory financing platform that enables companies to access funds from a community of backers that they are unable to acquire through traditional sources. We connect brands to a community of buyers who help fund the inventory on consignment and give them the flexibility to pay back the funds as they receive cash from their sales. This alleviates the cash-flow pinch that lenders can cause without customized repayment schedules, allowing your brand to scale quickly without impeding your ability to maintain inventory or financial flexibility. 

Kickfurther addresses the cash flow and inventory financing needs of seasonal eCommerce businesses by providing businesses with the necessary capital to purchase inventory, offering predictable cash flow, and sharing the risk with a supportive community of backers, all of which contribute to smoother operations and better financial stability throughout the year. This is especially valuable for seasonal eCommerce businesses that need to stock up on inventory before their peak seasons meet customer demand. With Kickfurther you can quickly access millions in funding at one flat cost.

Why Kickfurther? 

No immediate repayments: You don’t pay back until your new inventory order begins selling. You set your repayment schedule based on what works best for your cash flow.

Non-dilutive: Kickfurther doesn’t take equity in exchange for funding.

Not a debt: Kickfurther is not a loan, so it does not put debt on your books. Debt financing options can sometimes further constrain your working capital and access to capital, or even lower your business’s valuation if you are looking at venture capital or a sale.

Quick access: You need capital when your supplier payments are due. Kickfurther can fund your entire order(s) each time you need more inventory.

Kickfurther puts you in control of your business while delivering the costliest asset for most brands. Using Kickfurther to fund  your inventory, you can free up existing capital to grow your business wherever you need it.

Ready to accelerate your eCommerce growth with eCommerce financing solutions from Kickfurther? Here’s how you get you started:

  • Create a free business account
  • Complete your online application 
  • Review a potential deal with one of our account reps to get funded in minutes

5 Ways You Can Benefit From AI in Ecommerce

Posted on by Amanda Levine

AI is changing the world of eCommerce, but that’s not all it’s revolutionizing. When leveraged properly, AI is a powerful tool that can boost sales and customer retention, while delivering customers an improved shopping experience. With advanced capability, you will want to work with an AI expert to properly implement and support AI technology. To free up cash flow to invest in AI technology and prepare for an increase in sales, you may want to take advantage of inventory financing or eCommerce financing.

Before uncovering the best financing solutions to grow your business, here’s what you should know about eCommerce AI and how it’s changing the world of eCommerce.   

What is AI?

Artificial intelligence (AI) is a technology designed to simulate human intelligence by machines. AI technology can perform the cognitive functions of the human mind. It can understand perception, reasoning, learning, and interacting within an environment, problem-solving, and even creativity of the mind. While AI is complex and extremely advanced, the applications of it are not. However, the behind-the-scenes work with the data generated is mind-blowing. AI is incredibly capable and customizable, creating tremendous opportunities for businesses.

How is AI being used in eCommerce?

AI is transforming the way businesses market and reach customers. It has limitless capability to help business owners understand customer behavior, such as purchasing behaviors and trends. Additionally, companies can use AI to deliver personalized product recommendations, tailored sales campaigns, chatbots to improve customer experience, dynamic pricing, and more. For example, if a customer has been researching sleeping bags for camping with a baby, AI can help you identify that and recommend a product that matches their search criteria. Customers love eCommerce because it can make finding what they need easier and more convenient. Additionally, they can compare products and reviews, while accessing more options. To remain competitive in the eCommerce space, you will want to give customers what they want. AI can also help you deliver customers a personalized experience, thus strengthening their bond with your brand. 

While eCommerce can help businesses keep overhead down, investing in AI, marketing, and other technologies will be important. Remember, customers have more options at their fingertips when they shop online. Therefore, you will have to go the extra mile to capture their business, and another mile to retain it. When marketing to customers, deliver value. AI can help you do just that by understanding their needs. 

5 Ways You Can Benefit from AI in eCommerce

1. Personalized product recommendations

With so many options available, and a lack of personal touch in the eCommerce world, providing personalized recommendations can help you capture more sales. Additionally, it can enhance the shopping experience for the customer. Personalized recommendations can be generated based on the customer’s behavior, recent purchases, search history, and so forth. The recommendations can be for a specific product AI knows they are interested in, or perhaps something related, the customer won’t know what they need or want until they see it. Additionally, if you can increase the sale, you can combine the effective recommendations with a coupon or sale to seal the deal. By getting the right products in front of customers, they can feel as if you truly understand their needs. 

2. AI chatbots

Customers can shop online 24/7. While you can operate business hours for customer support with a live person, chatbots can aid in a customer’s online shopping experience. As you may know, some chatbots are more helpful than others. If you choose to use chatbots, ensure they can improve customer experience, not just leave them frustrated. Chatbots can simulate human interactions. Customers can chat with chatbots online to get questions answered and get the help they need. They can suggest pages or things they think the user wants to see. 

3. Customer segmentation

While you may have a general target market, several segments lie in between. Previously, companies would send a mass email to all customers or a flier in the mail. However, marketing things to customers that aren’t of interest can make your brand lose credibility. With AI, you can segment customers and tailor marketing based on their interests and behavior. This can improve the bottom line while refining marketing budgets. Data-driven algorithms can be used to segment customers. 

4. Smart inventory management

AI can improve inventory management, as it can identify trends and provide recommendations about what to reorder and when. It can also help you track inventory in real-time while providing suggestions. By understanding consumer behavior, you can forecast sales and identify opportunities. 

5. Business loan underwriting

AI is commonly used in the lending world, as it can help predict the future behavior of an individual. For example, if an individual tends to lose their job every 2-3 years or make payments for 4-6 months and then stop, there’s a good chance these patterns will be repeated. AI can help lenders make real-time lending decisions to offer preliminary loan offers. This has removed the need for a human to process an application just to generate an offer. 

Future of AI in eCommerce

AI is here to stay in the eCommerce world. As it continues to evolve, shopping experiences get better and better. Companies that use AI in eCommerce should evaluate it consistently to find new ways to improve. AI can boost sales, strengthen customer relations, and help you operate a lean business. 

How Customers Can Be Better Served with Kickfurther

With inventory funding, businesses can keep up with customer demand while improving operations. With working capital to purchase inventory, businesses can improve the overall functionality of their business. Access to additional working capital can allow business owners to reduce stress and run their businesses with a more customer-centric focus. While the bottom line always matters, oftentimes, decisions on policies or situations can be dependent on financial backing. Kickfurther can fund up to 100% of inventory at up to 30% cheaper than other options. 

How Kickfurther can help

Investing in technology is a smart way to improve customer experience, operate efficiently, and grow your business. However, it requires capital to make investments and refine how things are done. To free up cash flow, businesses often need to access inventory funding. Kickfurther funds up to 100% of your inventory costs on flexible payment terms you customize and control. With Kickfurther, you can fund your entire order(s) each time you need more inventory and put your existing capital to work growing your business without adding debt or giving up equity.

Do you need more reasons to choose Kickfurther?

No immediate repayments: You don’t pay back until your new inventory order begins selling. You set your repayment schedule based on what works best for your cash flow.

Non-dilutive: Kickfurther doesn’t take equity in exchange for funding.

Not a debt: Kickfurther is not a loan, so it does not put debt on your books. Debt financing options can sometimes further constrain your working capital and access to capital or even lower your business’s valuation if you are looking at venture capital or a sale.

Quick access: You need capital when your supplier payments are due. Kickfurther can fund your entire order(s) each time you need more inventory.

Kickfurther puts you in control of your business while delivering the costliest asset for most CPG brands. With more free cash flow you can allocate more resources toward investing in AI technology. While inventory funding may increase your cost of goods sold, AI technology can reduce expenses over the long term while increasing sales. When deciding what’s best for your business, think long-term. See the vision that once encouraged you to take the leap into business ownership and keep chasing it.