How to Sell on Walmart Marketplace in 3 Easy Steps

Posted on by Kaylyn Perry

As online marketplaces continue to revolutionize the ease of selling products online, Walmart is earning a large part of the market share. Learning how to sell on the walmart marketplace creates more opportunity to sell products. With eCommerce and online shopping growing rapidly, competition is becoming more fierce. Therefore, you need to be an expert in the community to dominate. Companies such as Amazon and Walmart offer online marketplaces that consumers frequent. On these marketplaces, there are third-party sellers, which allows the host to profit and attract more consumers without managing more products. To start your journey as a Walmart seller, keep reading to learn how to sell on the Walmart  marketplace.

What is Walmart Marketplace?

Just like Amazon, the Walmart marketplace is a platform where consumers can find just about everything they need. Within the marketplace though, products are sold by third-party sellers. This means that although consumers are on the Walmart site – they are not dealing directly with Amazon. You can compare the marketplace to eBay or Amazon. The idea behind the marketplace for Walmart is that the partnerships compliment first-party offerings on Walmart. Selling on Walmart is easy with no setup or monthly fees. Sellers will just need to pay a commission rate that can vary by category. Rates range from 6% to 20%. 

What are the requirements to sell on Walmart marketplace?

While requirements are not written in black and white, there are some that are. At a minimum business will need to meet the following requirements: 

  1. Have and present proof of a US Business Tax ID (SSN not accepted)
  2. Verification of businesses address or physical operation location (W9 or W8 and an EIN verification letter)
  3. Located in the United States
  4. Product information (example – total number of SKUs, used vs. refurbished)
  5. List and link of marketplaces you currently sell on
  6. Explanation of why you are a qualified seller that’s good for the marketplace
  7. Company website
  8. Average online revenue figures

Additionally, it’s recommended that your business have at least $500,000 per year in total sales that can be proven. Sales should be through Amazon or another online marketplace. Walmart is looking for experienced sellers that provide superior customer service, hence the requirements. Plus, they will want to see that your product is different from what is already on their site. As a final step, Walmart will want to ensure that you can fulfill products in a timely manner.

Pros and cons of selling on Walmart Marketplace

  • PROS
    • Low seller fees. Merchants are only required to pay a referral fee, which can vary depending on the product category. For example, video game consoles are 8% and jewelry is 20%.
    • Opportunity to facilitate and manage return policy. Walmart does not regulate return policies, which is a good thing for sellers, but maybe not such a good thing for consumers. Sellers on Walmart must have a written return policy less than 4,000 characters. 
    • Less competition. Walmart is a healthy marketplace with 70,000+ sellers, but compared to other major players such as Amazon, the marketplace is fairly small. Amazon has about 2.4 million active sellers. 
    • Access Walmart customer base. Walmart customers are after value. And Walmart often delivers more than what they are looking for. Therefore, their marketplace attracts traffic and most visitors believe they will find value through the Walmart brand.
  • CONS
    • Pricing parameters can be strict. Sellers are held to standards that force them to make sure products are not available for a cheaper price elsewhere. Check out Walmart’s Price Parity Rule or Price Leadership Rule. To be clear, sellers can set their own prices, but they could not offer the same product for less on Amazon. 
    • Reduced profit margins. Walmarts slogan Everyday Low Prices may require sellers to offer products for cheaper than they want.
    • Less traffic than other marketplaces. Walmart is not the biggest player in the online marketplace space. Amazon generates about 80 million more visitors per month compared to Amazon. 
    • Unfair advantage as the result of a first-come, first-serve system. Walmart marketplace prioritizes sellers that come first. Therefore, when it comes to the Buy Box, the seller that listed first may be prioritized. To get more Buy Box time, you’ll need to compete on price. 

Walmart Marketplace Fees Explained

Walmart has a unique fee schedule for sellers. With no setup, subscription, or monthly fees you can rest assured that Walmart is still profitable. Walmart charges sellers referral fees which vary depending on the category of product. You can visit the Walmart site to find a complete list of referral fees. For example, consumer electronics are 8% and kitchen is 1%.

How to Sell on Walmart Marketplace in 3 Easy Steps

Step #1: Complete the application process

If you meet the requirements to sell on Walmart, you can apply. Before applying you should gather documentation that may be requested, some of which we referenced above. Documentation includes W9 or W8, U.S. Business Tax ID, and so forth. If you have documentation handy, the application can be completed in as little as 10-15 minutes. 

Step #2: Once approved, it’s time to register

After submitting your application, Walmart can approve it. Once approved, they should email you a link to register your business. The registration process includes six steps as follows:

  • Account creation
  • Walmart Retailer Agreement
  • Company registration
  • Tax forms
  • Payment info
  • Shipping info

Step #3: List products, test listings, and start selling live!

As a final step, you’ll need to create listings. To ensure listings are functional, Walmart encourages sellers to test items first. This means you will make sure the listing works properly by adding items to your cart, changing quantities, and ordering. Products will not show up live on Walmart until testing is complete. When ready to go live, Walmart will perform a  final review and make your account go live when complete.

Is it easy to sell on Walmart Marketplace?

Selling on an online marketplace is easy, but that does not mean hard work and creativity are not driven factors of success. You’ll have plenty of competition so your products and service will need to stand out. Not to mention that your prices will need to be competitive. Selling volume can help drive prices down, so if needed, consider using funding to afford more inventory or secure bulk discounts. 

How to get approved to sell on Walmart Marketplace

First, you’ll need to meet the requirements as discussed. While approval is partially left up to Walmart discretion, here are some of things they are looking for when approving sellers: 

  • Must be a legitimate company 
  • Prove that customer service matters – and that you’re taking care of customers
  • Sell products that compliment Walmart’s marketplace
  • Keep prices competitive
  • Demonstrate an effective and capable fulfillment process
  • Be prepared to provide Walmart with inventory info once approved

Although it may seem obvious, you also cannot sell prohibited or restricted products like animals, alcohol, drugs and medical devices, certain jewelry items, weapons, offensive products, and more.

Tips for getting started

Starting a new business venture is exciting, but it does not come with an investment of time, resources, and money. Before diving in as a Walmart seller – be prepared. Walmart is not looking to be a gateway for rookie sellers. While they make it easier to sell online, they want companies that have established sales and processes and a care for customer service. Your brand reflects theirs, so do what you can to demonstrate that you will be a valued partner – just as they are!

How Kickfurther can help

Selling online requires sellers to compete on price. Part of keeping costs low is ordering in bulk. Plus, you always want to ensure you have enough inventory in stock so you don’t miss a sale. Online sellers can benefit from affordable inventory funding, which Kickfurther can help provide. 

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.

Closing thoughts

The rapidly growing Walmart marketplace is attracting new sellers daily. But, to get in, you’ll need to prove your worth. Part of that is demonstrating a plentiful inventory supply and efficient fulfillment practices. Inventory funding for Walmart can free up cash flow so you can invest in your business all while stocking plenty of inventory. 

Interested in getting funded at Kickfurther? Here are 3 easy steps to get started:

#1. Create a free business account

#2. Complete the online application 

#3. Review a potential deal with one of our account reps & get funded in minutes

Learn more about Walmart Inventory Financing options with Kickfurther.

Maximizing Growth and Revenue with Product Bundling

Posted on by Kaylyn Perry

Product bundling is a smart marketing strategy that combines multiple products into a single offering. It’s a powerful tool that creates value for buyers through discounts and convenience, while expanding the product portfolio and customer base for the ecommerce retailer. By packaging related items together, product bundling provides a win-win situation for both parties – customers receive more for less, while businesses increase sales volume and product diversity. 

The Advantages of Bundling for Ecommerce and Retail Businesses

The advantages of product bundling are numerous and can help businesses drive growth and increase revenue. By wrapping items together into a more attractive package, retailers can attract more customers and raise their average order size.

Boost Average Order Value

Product bundling is a proven way to increase the average order dollar amount. By offering lower product costs and higher market appeal, customers can purchase multiple items at a discounted price, allowing them to buy more than they would have if purchasing the same items individually.

Upsell Opportunities

Product bundling can also create opportunities for businesses to upsell their products. By offering complementary products together, businesses can encourage customers to purchase additional items that they may not have considered before. This not only increases revenue but also introduces customers to new products and expands the business’s product portfolio.

Revamp Bottom-Selling Inventory

Product bundling can help businesses move their bottom-selling items. By combining them with better-selling items, the cost can be reduced, delivery times can be faster, and the customer experience when purchasing can be improved. Additionally, businesses can leverage the strong brand recognition of high-volume items to bring attention to lower-volume units, generating more sales.

Streamlined marketing efforts

Product bundling can also streamline marketing efforts by allowing businesses to promote multiple products at once. Instead of marketing each product individually, businesses can package products together and market the bundle as a single offering. This can save time and resources, as well as increase the visibility and appeal of the bundled products.

Increased Customer Loyalty

Product bundling can increase customer loyalty by offering them a better value proposition and creating a sense of exclusivity. When customers receive a bundle of products that they want or need at a discounted price, they feel appreciated and valued. This can result in repeat business and positive word-of-mouth recommendations.

 

Different Types of Bundling Strategies

Product bundling can be a great way to increase sales and offer customers a variety of options. Different types of bundling strategies include mix and match bundles, cross-sell bundling, new product bundling, BOGO (Buy-One-Get-One) bundling, old inventory bundling, and mystery box bundling. Each strategy has its own advantages, and the right one will depend on the business’s target market and goals.

Customize Your Bundle Packaging

Personalizing the way you package your bundle provides customers with a distinct buying experience that keeps them coming back for more. By adding unique package inserts, customers receive not only the product they purchased but also an idea of how to use it and what other items go best with it. This small touch creates a sense of ownership and pride in the purchase, making customers feel valued and increasing customer loyalty.

Partner with a Third-Party Logistical Provider (3PL)

Partnering with a 3PL provider like Badger Fulfillment Group to bundle your products can bring many benefits. 3PLs have expertise in logistics and shipping, making them highly qualified to ensure that bundled products are delivered on time and in perfect condition. Working with a 3PL also saves time and money as they are often punctual and efficient. Additionally, 3PLs can help distribute inventory quickly during bulk orders, meeting the constantly changing needs of customers. Their knowledge of industry standards, regulations, and detailed practices makes them an excellent choice for businesses looking to optimize their product bundling strategy.

In conclusion, product bundling is a powerful marketing tool that can help businesses increase revenue and drive growth. From boosting average order value, to elevating sales volume, to revamping bottom-selling inventory, product bundling offers numerous advantages for ecommerce and retail businesses.

This is a guest post from our partner Badger Fulfillment. Badger Fulfillment is a dedicated B2B and B2C fulfillment center located in Harvard, IL. Their owners and operators have numerous years of experience with order fulfillment and other value-added fulfillment services. Using innovative technology and a skilled labor force to complete day-to-day tasks allows them to work smarter for their clients. They enjoy partnering with businesses of all sizes in an effort to reduce the headaches of warehousing and fulfillment procedures.

Are Facebook and Instagram ads effective in generating ecommerce sales?

Posted on by Kaylyn Perry

Facebook and Instagram eCommerce ads create tremendous opportunity for selling products online. With the ability to target specific consumers based on behavior, eCommerce sellers can effectively market their products. Results though will depend on more than just reaching the right market. You’ll need creative and engaging content and a quality product to keep the word spreading. Business owners must understand Facebook and eCommerce ads should they choose to manage them. For the best results though, it can be a smart investment to hire a trusted professional. As a business owner you should keep your time open for operations that can only be done by you, such as obtaining financing to stock products. As you enter the Facebook and Instagram space, you should prepare for an increase in sales, which may call for financing. Read on as we explore Facebook and Instagram ad optimization and inventory financing.

How effective are Facebook & Instagram Ads  in generating sales?

Facebook ads ecommerce and Instagram ads ecommerce can help you boost sales. The return you see will vary depending on your ad-creation skills and reach, but over time, you will learn what’s working and what isn’t, and your ads should be more effective. Facebook ads have one of the highest average conversion rates of 9.21%. Instagram is far behind with an average conversion rate of 1.08%.Facebook’s high conversion rate has been attributed to its advanced targeting capabilities.  Keep in mind there are more ways to generate sales through social media aside from paid advertising. Taking advantage of influencers can help spread the word about your product, and may even be more cost effective. 

Can Instagram and Facebook Ads increase your business Commerce Sales?

Yes, Instagram and Facebook can increase your business eCommerce sales. Instagram has over 2 billion active users with 200 million people visiting at least one business daily. Facebook has close to 3 billion active users and has become a favorite with marketers.

However, it’s important to use the right strategies to ensure your business makes a return off the ads you are posting.

Tips to using Facebook & Instagram to generate eCommerce purchases

So what strategies should you be using to ensure your Facebook ads ecommerce and Instagram ads ecommerce help your business grow? Here are a few tips.

#1. Choose the right ad format.

Instagram and Facebook offer a variety of ad formats. Here are some examples:

  • Photo Ads: A simple photo and some text can be an effective way to get your story across.
  • Video Ads: Video is a favorite digital marketing tool as it’s eye catching and offers audio and visual elements to offer demonstrations and product stories. 
  • Stories: Stories will stay up for just 24 hours so people will want to view them while they are visible. This creates a sense of urgency. Typically, users viewing stories are passing time, which means when they aimlessly stumble across something they now think they need, they may even have time to order right away.
  • Messenger Ads: Messenger ads are sent directly to customers, so they are difficult to ignore.
  • Carousel Ads: Carousel ads feature images that can be swiped to the side for an interactive effect. Each image can include a link. The format is ideal for telling a story.
  • Slide Show: Slide shows are similar to video, but they are posted in slides that move from one to the next. They can include sound and text. They are effective in sending a brand message and offer an easy, lightweight aesthetic.
  • Collection: This format shows a collection of ads. Users can tap on one to learn about a specific product.

The type of ad you choose will depend on what’s best suited for your company and the product and service you are offering. You may want to try various ads to find out which is the most effective.

#2. Ensure you have strong calls to action.

A call to action tells the consumer the purpose of your ad and what you want them to do after reading your ad. For example, you may want them to buy your product, check out your website, subscribe to your newsletter, etc. The message should be clearly stated in the CTA.

The CTA is typically included at the end of the ad text although it may appear in other areas of the ad. For best results, highlight your CTA as a brightly colored button that includes a link that takes the consumer where you want them to go.

#3. Utilize user generated content (if available).

Reviews and testimonials are common examples of user generated content. It’s an effective marketing tool as it helps consumers build trust in your brand. When consumers see that past customers had a good experience with your brand, they will be more likely to convert.

There are several ways to integrate user generated content in your Facebook and Instagram ads. For instance, you can simply include the text of a testimonial. Or you could post a video of someone praising your company.

You can also take a more interactive approach by having users post pictures of themselves using your product. You will get more people involved if you use a contest format and offer a prize for their content.

#4. Split test your ad groups and campaigns.

Split testing involves trying different ads to see which is more effective. You can alter the content of your ads to determine which strategies are working and which are not. You can play around with text, images, and ad formats to see which are getting the most interactions and bringing in the most conversions.

#5. Invest in Analytics tools to measure results.

Analytics tools will tell you how many people viewed your ads, how many clicked through, and how many converted. They will even further break it down so you can determine what demographic groups are responding to your ad.

Facebook and Instagram offer analytic tools through their business suite. And if you want to get more specifics, you may want to try their Creator Studio option.

There are also several third-party analytic tools that can be used with Facebook and Instagram such as SocialInsider, AgoraPulse, Buffer and more. Shop around to see which is best suited to your needs.

#6. Ensure you are promoting products where you have enough inventory in stock.

If you’re promoting products, you must ensure you have enough inventory to meet the demand. If a consumer orders a product you are advertising only to find out it is out of stock, it will make you look bad. They may go to another company for that item never to return.

Count your inventory before promoting a product so you are confident you will be able to fulfill orders. If you are fighting cash flow challenges and it’s impacting your ability to stock enough inventory it may be time to consider inventory funding. By obtaining funding for inventory you can free more cash flow to invest in growth areas such as marketing while making sure you never miss a sale. For affordable and fast inventory funding, count on Kickfurther.

#7. Utilize influencers.

Influencers are very powerful when it comes to boosting sales. Not every company will be able to pay a big-name celebrity to post about their products, but there are plenty of micro-influencers on social media with large followings who will be happy to promote your products in return for free samples, discounts, and payments.

Are Facebook Ads &  Instagram Ads worth it?

Facebook ads and Instagram ads are worth it as they are proven to produce a high ROI. To make your efforts and investment worthwhile, be sure to create unique content and connect with users. Develop an effective strategy and stay in front of consumers on a regular basis. Connect with them through messages and values. Keep in mind that staying in front of consumers does not always mean selling them something, it could simply be connecting with them which could convert into future sale(s). 

 That being said, no business can really afford not to be on these social media channels. And with so many options to advertise for free, you are bound to make some headway.

Closing thoughts

Social media platforms such as Facebook and Instagram create tremendous opportunity for eCommerce sellers. While the strategy behind a successful marketing plan via Facebook and Instagram will be significantly different from traditional avenues, they can produce a healthy ROI. Be creative. Differentiate your brand. Try new things. Consumers want to connect with brands and people, hence why they are on social media. If you can gain a following and interest and you have a quality product, it’s only a matter of time before sales follow. 

As you anticipate an increase in sales, you may want to start considering how to fund more inventory. As an eCommerce seller you may know there are difficulties with finding inventory funding. Founder of Kickfurther, Sean De Clercq, battled these challenges in search of funding for one of his startups. As a true entrepreneur, he put his frustrations to good use and created Kicfurther. 

Kickfurther is the world’s first online inventory funding platform that enables small businesses to access funds that they are unable to acquire through traditional sources. For companies that sell physical products or non-perishable consumables and have revenue between $150k to $15mm over the last 12 months, Kickfurther can help. We connect brands to a community of backers who help fund inventory on consignment and give brands flexibility to pay that back as they receive cash from sales. 

Kickfurther can help startups and small businesses fund millions of dollars of inventory at costs up to 30% lower cost than the competition. With more than $100 million in inventory funded to date, Kickfurther can help you get funded within a day or even minutes to hours. 

Interested in getting funded at Kickfurther? Here are 3 easy steps to get started:

#1. Create a free business account

#2. Complete the online application 

#3. Review a potential deal with one of our account reps & get funded in minutes

Learn more about eCommerce Inventory Financing from Kickfurther.

Tips to Simplify Your Purchase Order Process

Posted on by Kaylyn Perry

The purchase order process should have steps that are followed each and every time. Purchase orders are designed to offer clarity and transparency between buyers and sellers, but they can be complex. 

On the surface, the purchase order process may seem to consist of simply creating a document that tells the seller the items you wish to buy, their quantity, and the purchasing and delivery terms. But it also requires a variety of purchase order process steps such as considering supply and demand, budget, and more.

Businesses that can simplify their purchase order process will maximize their budget, improve compliance, minimize risk, and save time and money. But what steps will they need to take to make this happen? This article will answer the question, how does the purchase order process work, and provide tips on how to make your process as simple as possible.

What is a purchase order?

A purchase order is a legally binding agreement created by a buyer and presented to a seller. It states the items the buyer wants to purchase, the quantity of each, and the payment and delivery terms. It protects the buyer by giving them a legal record of what they ordered. It also guards the buyer against unexpected price increases.

How does the purchase order process work?

The purchase order process steps are as follows:

  1. Create requisition: This step involves creating the order for the product or service the company intends to purchase. It can be created manually or automatically.
  2. Budget approval: Next, the order is reviewed by upper management so the budget can be approved before it’s sent. If many executives are required to approve the budget, it can add time to the purchase order process.
  3. Issue the purchase order: This involves the purchase order being officially issued to the vendor. It differs from the requisition step as the requisition may have only determined the products needed. In this step, a vendor will be identified, and the order will be sent.
  4. Receive material: Next the material is received by the company. If the product is tangible, employees will check it to ensure the order was accurately fulfilled and no items were damaged. They will then inventory the items. If they got a receipt, it would need to be filed.
  5. Receive the invoice: Vendor invoices can be sent in one of two ways. The vendor may send the receipt as a paperless document that must then be manually entered into the buyer’s system. Or it may be sent straight through Electronic Data Interchange which fully integrates the invoice into the buyer’s backend system eliminating the need for data entry.
  6. Invoice reconciliation: The invoice is then reconciled against the PO (or in some cases both the PO and receipt). If no discrepancies are found, the buyer will pay the vendor based on the payment terms.

Advantages of optimizing your purchase order process

Optimizing your purchase order process can benefit you in the following ways, and beyond.

  • Compliance: If you use the right procurement software you will be able to match orders, run audits on inventory and identify important documents easily. This will ensure you comply with the standards needed to keep your business running.
  • Minimize risk: With suitable technology, you can automate systems to provide order details, costs, and payment and service terms. This will make it easy to correct orders that may be incorrect due to a vendor error and minimize the risk of disputes turning into legal battles.
  • Improve budget management: When all your purchase orders and invoices are input into a central location (ideally in a computer software program) you will be able to see them at a glance. This will give you a quick picture of your budget so you can handle money matters more effectively.
  • Better business relationships: A simplified purchase order process will conveniently provide you with the terms of each order. This means any miscommunications between the vendor and buyer can be easily resolved making for better business relationships overall.
  • Save time and money: Simplifying the purchase process will add efficiency to the way your company does business. It will save you time and money so you can focus on other tasks and increase your bottom line. Most importantly though, it will improve the experience for clients.

How to simplify and improve  your purchase order process

Whenever possible, processes should be simplified. This same rule of thumb goes for purchase orders too. Here are some ways that businesses can simplify and improve the purchase order process.

  • Create a list of established preferred vendors:  If buyers have a list of established preferred vendors, they won’t have to take time to find the best vendors when they want to order a product. Determine the vendors that offer the best prices and highest quality items you require and have their information on hand so you can contact them as needed. This can also protect the business to ensure employees are not choosing friends as vendors for a personal gain. 
  • Utilize technology: Technology can be used to automate systems and cut back on errors, so the purchase order process is more efficient.
  • Inventory sourcing strategy: An inventory sourcing strategy consists of analyzing business needs and historical spending on a regular basis. This will make the decision-making process simpler when it comes to future purchases. It will also increase company earnings.
  • Negotiate with your suppliers:  It’s advisable to negotiate with suppliers for discount rates within reason. This will be especially effective if you are a regular customer and/or buying in bulk. Before asking for a discount, make sure you are asking for a reasonable discount as you want to keep the supplier encouraged to work with you so you can both maximize profits. 
  • Review your approval process: The approval process can be time consuming, especially if you’re  bringing in various decision makers. Companies should review their approval process to make it as simple as possible.
  • Improve information access: Your purchase order process should run smoothly if all information regarding purchases is stored in a central, easy to access location. There are several software programs that can serve this purpose. Do some research to find one that’s best suited to your needs.
  • Assess existing processes: Assess existing processes to determine what may be getting in the way of your business functioning at optimal efficiency. Shadow the person handling purchase orders to see how certain tasks can be sped up. Do regular reviews to ensure your systems are always running as smoothly as possible.
  • Automation: Businesses should take advantage of automation whenever possible as it can minimize error. Furthermore, automation helps keep processes consistent. Purchase order creation and processing can be automated to some extent.

How Kickfurther can help

Once you’ve mastered purchase order processing, you can accommodate more orders. Resources should be spent on fulfilling orders, providing customer support, marketing, and every effort that drives business. While this includes purchase orders too, this should really be one of the easier parts of the process. As your business achieves efficiency with purchase order steps, you can open the door for more orders. More orders means more inventory, and that’s where Kickfurther comes in. 

Kickfurther  is the world’s first online inventory funding platform that enables small businesses to access funds that they are unable to acquire through traditional sources. For companies that sell physical products or non-perishable consumables and have revenue between $150k to $15mm over the last 12 months, Kickfurther can help. We connect brands to a community of backers who help fund inventory on consignment and give brands flexibility to pay that back as they receive cash from sales. 

Kickfurther can help startups and small businesses fund millions of dollars of inventory at costs up to 30% lower cost than the competition. With more than $100 million in inventory funded to date, Kickfurther can help you get funded within a day or even minutes to hours. 

Closing thoughts

The purchase order process is something companies must continue working on to ensure optimal efficiency. With the right strategies, you will get your process down to boost compliance, minimize risk, optimize budget, and build better business relationships. You will be able to work out a system that helps your company grow.

Kickfurther can help you improve your purchase order process by helping businesses access funding they need to acquire inventory. 

Interested in getting funded at Kickfurther? Here are 3 easy steps to get started:

#1. Create a free business account

#2. Complete the online application 

#3. Review a potential deal with one of our account reps & get funded in minutes

Learn more about purchase order financing at Kickfurther.

A Guide to Your Supply Chain

Posted on by Kaylyn Perry

Supply chain issues can cause significant problems for businesses. From ensuring you’re operating as efficiently as possible to always having enough product on hand, supply chain can impact so many business functions. Supply chain management is critical not only for success, but customer satisfaction too. An effective supply chain management can also increase your bottom line. To keep things running smoothly, you’ll need to pay attention to supply chain issues. And, when it comes time to raise funding, investors will be happy to see efficient and healthy supply chain management in place. Read on as we learn more about supply chain management and how it can impact your business.

What is supply chain management?

Supply chain management oversees all aspects of your supply chain. It ensures you have the inventory you need to fulfill orders and that customers receive their items as expected. It can also impact the price at which you’re able to deliver products. Unnecessary steps in your supply chain can drive costs up. Supply chain management involves all entities necessary to the process including manufacturers, suppliers, producers, customers, and end users.

How does supply chain management work?

Supply management involves three levels as follows.

#1. Strategic Planning: 

Upper management typically oversees the strategic planning process. It involves deciding whether to expand into new markets, add items to inventory and so on. It may also include adding software to make the supply chain management more efficient and opening a new facility for supply chain purposes.

#2. Tactical Management: 

Tactical management puts strategic planning into effect. It involves creating contracts and production schedules and setting up regulatory guidelines for logistic planning. It aims to control cost and minimize risks.

#3. Operational:

Operational planning determines how the day-to-day tasks involved in supply chain management are carried out. It involves overseeing production operations, managing inventory, and making decisions to ensure the company reaches its goals. It aims to boost cost benefit and efficiency.

The key elements of supply chain management include

  • Demand management: This involves predicting future demand enabling executives to make decisions regarding external spending, purchase order management and waste management. Processes should be assessed on an ongoing basis to keep costs under control and see to it that raw materials are used efficiently.
  • Communication collaboration: Effective communication is necessary in supply chain management. Vendors and suppliers must communicate with one another. There must also be good communication within companies. This will help ensure operations run smoothly.
  • Business process integration: The aim of business process integration is to see various workers, departments, and functions as a cohesive entity. It encompasses various facets of the supply chain management process including relation management between customers and suppliers, product development, procurement, manufacturing flow management, inventory management, order management, distribution, and logistics.

Common supply chain management challenges and issues

Efficient supply chain management can greatly benefit a business. But,  companies can face their share of challenges when implementing it.  Here are some common supply chain issues that businesses may encounter.

  • Globalization: It’s not uncommon for companies to seek out manufacturers and suppliers in other countries to reduce costs. However, this leads to challenges when it comes to manufacturing, storage, and logistics across borders. It can also significantly slow down the shipping process negatively impacting customer satisfaction.
  • Competition: Competition is an issue for many businesses. It can be especially harmful to supply chain management as new companies may emerge with innovative technology that helps them run their supply chain more efficiently. Businesses can gain a competitive advantage by improving collaboration, focusing on goals and bigger issues, doing their best to manage costs, and making the right investments.
  • Technology adoption: Businesses may be tempted to invest in new technology that they think will make supply chain management more efficient. But, investing in the wrong technology can be a considerable setback. Furthermore, adapting to new technology can slow company processes even if it is a step in the right direction.
  • Security: Security is a common supply chain management challenge. There is a risk that companies may be hacked into as they increase their reliance on cloud-based technologies. Physical products can also be stolen. Companies can decrease risk by thoroughly vetting vendors, creating contracts with third party companies, and increasing their cybersecurity efforts.
  • Regulatory compliance: There are a variety of regulatory requirements in place, and it can be challenging for businesses to meet compliance guidelines. These include national, state, and local guidelines, industry standards, trade agreements, contractual obligations, customer expectations and non-government organization expectations. Companies that take a multifaceted approach that includes setting standards, employee training, reporting, and testing will meet compliance regulations, so they maintain good relationships and don’t face legal issues.

Pros & cons of supply chain management

Supply chain management comes with its share of pros and cons as follows.

PROS

  • Lowers costs: Supply chain management involves making processes more efficient and cutting back on costs whenever possible. Ideally this  lowers expenses, thus contributing more to the bottom line.
  • Improves customer satisfaction: The supply chain management process ensures customers receive quality products in a timely manner. This boosts customer satisfaction and retention.
  • Gives a good handle on inventory: Inventory plays a key role in supply chain management. When companies are on top of their inventory, they are better able to fulfill orders and turn a profit. They can also protect themselves against shrinkage.
  • Helps navigate disruptions: Healthcare crisis, climate events and other factors can cause disruptions to the supply chain. A smart supply chain management system will keep companies afloat despite disruptions.
  • Enables growth: A smart supply chain management plan backed by the right technology and operational planning will help your company grow and rise above the competition.

CONS

  • Businesses face challenges when trying to globalize: Businesses may source goods from out of the country to save money. Unfortunately, this also leads to increased shipping times and difficulties with storage and logistics.
  • Competition: New businesses may come along who are adapted to new technology that helps them manage their supply chain more efficiently than companies using older technology. This can pose a threat to existing companies that are struggling to keep up.
  • Security: Cybersecurity is an ongoing issue for people that are moving their technology to the cloud. Physical products can get stolen as well.
  • Compliance issues: Staying compliant can be costly and confusing.
  • Technology adoption: It can be difficult to find the technology that is best suited to your software management needs. Make a poor investment, and it could be a major setback.

Why supply chain management is important

Supply chain management is so important for so many reasons. From delivering a better customer experience to driving profits, supply chain management impacts internal and external operations. Some small businesses or startups may plan to refine their supply chain management as they grow, but this is truly a mistake. No matter how big or small your company is you should make a conscious effort to execute effective supply chain management at all times. 

How Kickfurther can help

The ability to fund more inventory will call for efficient supply chain management. Companies often hit a point where they are growing, but struggling to keep up. By accessing funding for inventory you can keep your company growing without suffering financially. 

Kickfurther is the world’s first online inventory funding platform that enables small businesses to access funds that they are unable to acquire through traditional sources. For companies that sell physical products or non-perishable consumables and have revenue between $150k to $15mm over the last 12 months, Kickfurther can help. We connect brands to a community of backers who help fund inventory on consignment and give brands flexibility to pay that back as they receive cash from sales. 

Kickfurther can help startups and small businesses fund millions of dollars of inventory at costs up to 30% lower cost than the competition. With more than $100 million in inventory funded to date, Kickfurther can help you get funded within a day or even minutes to hours. 

Closing thoughts

Supply chain management will help your businesses survive and thrive in a competitive marketplace. Earning business is about so much more than just having a great product. Create a company that’s easy to deal with, empathetic to customer needs, and always hungry to be the best. If you operate with these goals in mind, we’re sure it’ll just be a matter of time before you need inventory funding to keep up with sales.

 Interested in getting funded at Kickfurther? Here are 3 easy steps to get started:

#1. Create a free business account

#2. Complete the online application 

#3. Review a potential deal with one of our account reps & get funded in minutes

Learn more about Inventory Financing for the Supply Chain. 

How Inventory Management Can Improve the Customer Experience

Posted on by Kaylyn Perry

Inventory management plays a big role in customer satisfaction. Inventory management should be designed to monitor product availability, but thanks to advanced technology, it can do so much more than that. Inventory management can tell you when to reorder products, help fulfill orders faster, identify what’s selling fast, and so much more. All of the benefits of inventory management can improve customer experience which will drive sales at the end of the day. While you may need to invest in inventory management, it’s a worthy investment. To free up cash to improve inventory management systems you may need to get funding for inventory. Keep reading as we explore inventory management and inventory funding. 

What is inventory management?

Inventory management is the process of ensuring you have enough inventory to sell while maintaining cash flow. It involves tracking inventory from the manufacturer to the point of sale. The purpose of inventory management is to ensure the right products are at the right place, at the right time. Furthermore, it allows businesses to ensure they always have enough inventory on hand. 

Inventory management involves the following:

  • Keeping track of inventory so you know how much of each product you have in stock.
  • Ordering more products to keep up with demand and cutting down on products that aren’t selling as well.
  • Making sure you have backup plans if you are low on a product that’s in demand. For example, you may have a variety of wholesalers you use so if one is out of a product you need, you can order from another supplier.
  • Managing inventory from raw materials to finished products.
  • Efficiently streamlining inventory to avoid shortages.

Why is inventory management important?

Inventory management is important for a variety of reasons including the following:

  • Inventory management and customers: The main reason inventory management is important is it increases customer satisfaction. If you are on top of your inventory you will be less likely to sell out of products or promise an order that you can’t deliver. This means customers will get their products without having to wait for backorders. It will also make them less likely to go to a competitor for the products they need.
  • Helps grow business and reputation: Keeping track of your inventory will help you determine which products are selling and which are not. As a result  you can invest in the products that sell and spend less on the products that don’t. This should result in higher income and reduced loss so your business can be more profitable overall.
  • Minimizes shrinkage:  Shrinkage occurs when items of inventory exist in accounting records but are no longer present in the actual inventory. This is typically due to clerical error, damaged goods, or theft. Inventory management helps companies account for shrinkage. It allows them to identify the source of shrinkage so it’s less likely to occur.

Types of inventories

There are several types of inventory a company can have. They will vary depending on the type of goods you sell, but can include the following.

  • Finished goods: These are finished products sold to customers.
  • Raw materials: These are the materials used to make finished goods.
  • Work in progress (WIP): These are unfinished goods that have not made their way through the manufacturing process.
  • MRO goods: MRO stands for maintenance, repair, and operating. MRO goods refer to the inventory used to support the manufacturing process.
  • Safety stock: This is the additional inventory a business keeps in stock to deal with supplier shortages and increases in demand.

How does inventory management influence customer satisfaction?

Inventory management influences customer satisfaction in several ways such as:

  • Fulfillment of orders: Inventory management ensures orders are fulfilled so customers get their items quickly and don’t go to another company for the goods they require.
  • Customer service: When warehouses are well organized and products are in stock, goods can be shipped to customers quickly, providing a high level of customer service.
  • Seasonality: You must consider seasonality in your inventory management processes. For example, you may want to increase your stock on summer items when temperatures heat up and order more winter items when temperatures drop. Upcoming holidays will also dictate which items customers will want to be purchasing from your store. Having the right products when you need them will help capture more sales while delivering what customers want, when they want it.
  • Preventing stock-outs: A stock out occurs when a customer orders a product, and the company realizes that they don’t have it in stock. They must then tell the customer that the item isn’t available and refund their money or put the item on backorder. Stockouts can negatively impact a company’s reputation and reduce customer acquisition and retention rates.
  • Returns: An easy return process can greatly increase customer satisfaction. If a customer receives an item that arrived damaged, they may want to exchange it for a product that’s in good condition. If the company has enough inventory, they will be able to swap it out quickly providing a prompt return process that makes the customer happy.

How can inventory management tools help?

Once upon a time, inventory management meant companies had to count their products manually which was extremely time consuming and produced a high margin of error. Today, inventory management tools are available that make the process easier and more accurate. They can even automate inventory management accounting for products that are bought and sold in real time.

Tools that are commonly integrated into the inventory management process include:

  • Data analytics: Data analytics involves using real time data so you can scale your inventory up or down in a timely manner to boost profits and reduce expenses. Data analytics will also provide insight on trends and market opportunities.
  • Product Segmentation: Product segmentation involves categorizing your products according to characteristics such as market appeal, profitability, and supply and demand patterns. This will allow you to get a handle on when inventory needs to be replenished. It will maximize profits, reduce operational costs, and make your inventory management processes more efficient overall.
  • ABC Analysis: ABC analysis involves organizing products into categories depending on how well they sell. Products in the A group will be those that sell the best. Products in C groups are those that aren’t selling well. Products in B groups are products that are selling, but not as well as those in the A group. B group products should be monitored to see what group they end up falling into, A or C. ABC analysis ensures you are investing in products that sell and not spending money on those that don’t.

How Kickfurther can help

Part of an effective inventory management process is stocking enough inventory. Losing a customer or sale as a result of not having a product in stock once or twice may not be the demise of a business. But, when this happens on a regular basis it can be. Customers need to know they can count on a business. From an initial order to a return or exchange companies should keep enough inventory on stock to fulfill orders. Furthermore they should have an easy ordering process. With inventory management tools in place, customer processes can be simplified and fulfillment can be expedited. So how can Kickfurther help?

Kickfurther  is the world’s first online inventory funding platform that enables small businesses to access funds that they are unable to acquire through traditional sources. For companies that sell physical products or non-perishable consumables and have revenue between $150k to $15mm over the last 12 months, Kickfurther can help. We connect brands to a community of backers who help fund inventory on consignment and give brands flexibility to pay that back as they receive cash from sales. 

Kickfurther can help startups and small businesses fund millions of dollars of inventory at costs up to 30% lower cost than the competition. With more than $100 million in inventory funded to date, Kickfurther can help you get funded within a day or even minutes to hours. 

Closing thoughts

Inventory funding can free up cash flow so that companies can improve inventory management. It also ensures that companies have plenty of products to sell. At the end of the day, customers are the lifeblood of a company. Business owners should do everything they can to deliver unmatched service. Disorganized internal operations will reflect through customer experience. Businesses with organized and effective inventory management systems in place can improve customer satisfaction. 

Interested in getting funded at Kickfurther? Here are 3 easy steps to get started:

#1. Create a free business account

#2. Complete the online application 

#3. Review a potential deal with one of our account reps & get funded in minutes