5 Ways to optimize your end to end supply chain

Posted on by Kaylyn Perry

What is end-to-end supply chain optimization?

What is an end-to-end supply chain? An end-to-end supply chain consists of an integrated process that starts with the design of a product and the procurement of the raw materials necessary for manufacturing. After procurement comes scheduling, production, distribution, and then the final link in the supply chain is the delivery to the customer or end-user. The supply chain can be extended beyond the final delivery to include potential events such as processing returns, shipping replacement parts, and making repairs, servicing products, or selling and shipping accessories. 

An end-to-end supply chain concept is different from a traditional supply chain because it integrates all supply chain functions. Having an integrated supply chain and visibility across the entire supply chain allows businesses to provide a smooth and efficient customer experience. A traditional supply chain may not have the same type of integration as an end-to-end supply chain. Additionally, each of the functions within a traditional supply chain is handled separately. This can cause inefficiencies and limit the overall performance of the supply chain. Now that we know the difference between a traditional and an end-to-end supply chain, how does a business optimize an end-to-end supply chain and what does supply chain optimization mean? End-to-end supply chain optimization can be boiled down to one word, integration. In order to properly integrate a supply chain, a business may need to consider investing in a quality enterprise resource planning system. An ERP allows a supply chain manager to view real-time information from every link in the supply chain all at the same time. Once an ERP has been set up and integration has been well established, then further optimization will naturally follow. End-to-end supply chain optimization essentially is the actions of a supply chain manager, or the results of supply chain integration, that help to make a supply chain more efficient by reducing the waste of time, money, labor, and other resources. An optimized supply chain allows companies to maximize gross profits, lower operating costs, and create the ideal customer experience all while balancing the costs of distribution, inventory, manufacturing, and transportation. 

What is the purpose of supply chain optimization?

The main purpose of end-to-end supply chain optimization is to increase gross profits by reducing waste and operating costs, increasing efficiency, and balancing all the expenditures related to the distribution, inventory management, manufacturing, and transportation of a product. Aside from this main purpose, there are many benefits to implementing an action plan to optimize the supply chain of any business. Here are some of the most impactful benefits that a business may see with a well-optimized supply chain. 

  • Reduction of operating costs: Reducing operating costs is one of the most impactful benefits that an optimization supply chain can bring to a business. The first way operating costs can be reduced through supply chain optimization is by increasing process efficiency to save on transaction execution and labor costs. Additionally, businesses may be able to identify repetitive, duplicated, and redundant processes to automate them, further reducing labor costs. Second, supply chain optimization helps keep prime levels of inventory to always meet customer needs while reducing how much capital is tied up in inventory. Last, infrastructure costs can be reduced and more easily managed by optimizing warehousing, logistics, and delivery processes/ 
  • Increased revenues: Supply chain optimization increases the number of perfect orders. Perfect orders are when a customer places an order and all the correct items are picked, packed, and shipped on time and up to the customer’s expectations. Perfect orders lead to customer satisfaction, increases in re-ordering, customer retention, and customer avocation, all of which can boost future revenues. 
  • Track and improve supplier performance: Enterprise resource planning systems can provide real-time data on the performance of every supplier that a business has. This allows a supply chain manager to track which suppliers are performing well and which are underperforming. They can also identify where bottlenecks and hold-ups may be occurring in the supply chain and address them. This type of information can be used to improve supplier performance and make strategic sourcing decisions. 
  • Integration: Supply chain integration allows a supply chain manager to have total visibility and transparency in every link of the supply chain. This can help create constant improvements in operations and planning. Improvements can be made and performance can be tracked in many components of the supply chain including sales forecasting, cash-flow management, on-time delivery, route planning, credit control, margin measurements, and disaster recovery. 

These are just only a few of the many benefits that an optimized supply chain can bring to a business. Supply chain optimization should be a major concern for any business owner who is looking to increase revenues and decrease operating costs. 

Tips and best practices for supply chain optimization

Optimizing a supply chain is not something that occurs overnight. It takes many hours of planning, studying performance metrics, and identifying potential inefficiencies to begin to develop a cohesive strategy that can be used for supply chain optimization. Here are some quick tips and best practices to remember when exploring ways to best optimize the supply chain of your organization. 

  • Create a supply chain task force: It is important that you have leaders from all the different departments within your company come together with supply chain management to discuss ways to optimize the supply chain in a way that aligns with the goals of the entire organization. Having interdepartmental communication related to supply chain optimization ensures that everyone is on the same page and that they are all active participants ready to implement a clear and cohesive supply chain optimization strategy. 
  • Use technology to streamline processes: Within an inefficient supply chain are many repetitive and routine tasks that are completed manually. Manual processes are not only inefficient at times, but they can also create a lack of visibility within the supply chain. By utilizing supply chain management software, a company can improve coordination between supply chain processes, increase the visibility of the supply chain as a whole, and reduce the amount of time wasted on manual processes that can be streamlined and made to be fully automated. 
  • Tend to supplier relations: It is not enough to find suppliers who provide the best materials at the best prices. A supply chain manager should be examining supplier performance metrics constantly to identify any potential issues or bottlenecks in the supply chain. Supply chain managers should also have strong communication with each of an organization’s suppliers as well as establish clear goals and expectations to continuously improve the efficiency of supplier processes. 
  • Inventory Control / Inventory optimization: Optimizing inventory quantities involves a business taking a look at the true cost of holding and storing inventory. Holding and storing inventory for long periods of time can cost a great deal of money. Optimizing inventory quantities includes forecasting and demand planning in order to have the proper amount of inventory at all times. The balance lies in having enough inventory to fill every order, but at the same time, not holding and storing the inventory for long periods of time, which doing so can eat directly into profits.
  • Logistics: Another part of supply chain optimization is working with transportation companies to ensure your supplies are coming in when you need them and that your products are successfully reaching your customers promptly. Late and/or lost shipments are easy ways to give customers unsatisfying experiences with your business. Unpleasant experiences and negative reviews can do a great deal of damage to the reputation of an eCommerce business. 

How Kickfurther can help

Controlling inventory and running an efficient operation is critical if you want to operate a lean business. While it may require investment to put systems in place to manage inventory and supply chain, they are well worth the investment in most cases. As you analyze supply chain and inventory you may determine you need more or less of certain products or processes. Enjoy the process of building your business and watching it flourish. When you hit obstacles, find solutions. At some point, you may encounter cash flow problems or the need for inventory financing. Kickfurther is the world’s first online inventory financing platform that enables companies to access funds that they are unable to acquire through traditional sources. We connect brands to a community of eager buyers who help fund the inventory on consignment and give brands the flexibility to pay that back 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.

Optimize your supply chain and grow your business. . . unlock affordable inventory financing today!

Inventory Funding: The Secret Ingredient to Growing your Food & Beverage Business

Posted on by Kaylyn Perry

The food and beverage business industry can be extremely lucrative. Just like any other industry though, you’ll need to be committed and have funds to support your growth. Keep reading to learn more about how to grow and fund your food and beverage business plan.

What are the biggest challenges in the food and beverage business?

The food and beverage industry is one of the most difficult industries to start and maintain a successful business. There are many challenges that business owners face on a daily basis. Here is a breakdown of some of the biggest challenges that business owners in the food and beverage industry face today.

  • Financial: The top five main financial challenges facing business owners in the food and beverage industry include commodity hedging, rising labor costs, maintaining inventory levels and fulfillment rates, capital expenditures like repair and maintenance, and collecting receivables. Food prices have been on the rise and it’s affecting many businesses in the food and beverage industry. Most often those prices get passed onto consumers, however, consistently increasing food prices makes it extremely difficult for a company to make longer-term forecasts and create operating budgets. Labor also is a concern of business owners in the food and beverage industry. Inflation and rising housing, food, and healthcare costs coupled with inflation, has created an environment where wages need to be increased in order to ensure the well-being of the labor force. These increased labor costs will directly affect the bottom line of many companies in the food and beverage industry. One last financial challenge facing business owners in the food and beverage industry is the cost of repairing and maintaining machinery and other essential capital equipment. It is not just food prices that are increasing. The price of skilled labor and the price of machine parts are also increasing. The parts and materials that keep machines operating are not only increasing in cost, but they are also increasingly harder to source. Financial challenges will always present themselves for any type of business, however, a company in the food and beverage industry may want to consider seeking a lender who is experienced with the industry and who can account for the many challenges that business owners are facing today. 
  • Inventory: One of the largest inventory concerns for businesses in the food and beverage industry is shelf-life. Other industries have the luxury of creating products that do not possess an expiration date. Yes, trends within those industries may change and some products may lose their appeal over time, however, food products literally can rot, mold, and become unusable. The way this can be addressed is ensure that your food supply chain is streamlined to prevent delay, and ultimately, waste. The United States threw away approximately 80-billion pounds of food in 2020. In a world with growing food scarcity concerns, disposing of 80-billion pounds of food each year in only one country is unethical at the very least.
  • Health consciousness: Consumers are more aware than ever about the ingredients of food and beverages and how those different ingredients can pose potential health risks. People are avoiding added sugars, dairy, gluten, preservatives, chemical additives, and many other ingredients for various reasons. Added sugars have been linked to obesity and diabetes. Processed meats have been linked to different types of cancers including colon cancer. It is information like this that today’s consumers are concerned about most. The goal of businesses in the food and beverage industry then needs to be to provide high-quality and delicious products without the use of preservatives and additives. Additionally, the nutrition trends of organic foods and free-trade have greatly impacted the way that businesses source their ingredients to create their food and beverage products. 
  • Sustainability: As a business in the food and beverage industry, sustainability is a major challenge that needs to be addressed. This may include streamlining the supply chain to reduce waste, creating sustainable food and beverage packaging, and sourcing ingredients from farms that practice sustainable farming techniques. 
  • Ethical sourcing: Maintaining transparency and accountability about sourcing is something that today’s consumers are demanding. What kind of farms do you source your ingredients from? What are the conditions for the animals? What about the workers? Are they treated fairly? Transparency in the global food supply chain is difficult to always provide, however, it should be considered a challenge that can inspire consumers to purchase your products.

There are many challenges that businesses in the food and beverage industry face. Being aware of those challenges can help you to better prepare. 

Types of food and beverage businesses

There are many types of businesses within the food and beverage industry. From fine dining establishments to food manufacturers, when we talk about the food and beverage industry, it is important to remember how massive the industry is and how many different types of businesses participate in it. Here is a breakdown of just a few of the many different types of food and beverage businesses involved in the industry.

  • Bars and restaurants: Bars and restaurants make up a large portion of the food and beverage industry. You can find bars and restaurants located in almost every town or city no matter the size. Those bars and restaurants employ a large number of people. From the cooks to the servers, from management to the wholesalers who supply those bars and restaurants with their products, a great number of people work in this sector. The bar and restaurant sector consists of fine dining establishments. brasserie, fast food restaurants, traditional restaurants, bistros, diners, steak houses, bars and pubs, cafes, themed restaurants, bakeries, kebabs, pizza joints, ethnic restaurants, and catering businesses that attend to weddings and other events. 
  • Dairy goods companies: Dairy goods companies are responsible for supplying supermarkets and restaurants with dairy products such as milke, butter, and cheese. From collecting dairy at the farm to intake at the dairy plant, to processing the raw ingredients to creating the end product that you see in supermarkets or that is used by restaurants, a dairy good company may have an interest and stake in every step of the process. 
  • Fruit and vegetable wholesaler: Fruit and vegetable wholesalers are responsible for getting fresh produce into the hands of restaurants and consumers as quickly as possible to ensure freshness and to maximize shelf-lives. Of all the food that is wasted in the US, 40% of the waste can be attributed to produce. This is why fruit and vegetable wholesalers need an efficient supply chain to make sure waste can be minimized and profits maximized.
  • Bottling plants: Bottling plants are facilities that use specialized bottling machinery to fill empty containers with products such as milk, juice, soda, beer, and other consumables. A bottling plant also prepares the product to be shipped and presented to customers.

The food and beverage industry is massive and it makes up a significant portion of the US economy. The above examples of businesses within the food and beverage industry is only a small sample of what the industry entails.

Tips to growing your food and beverage business

There are several ways you can grow your food and beverage business. By possessing an engaging business story, utilizing e-commerce, tapping into social media trends, emphasizing your values, improving your cash flow, understanding your finances, and increasing efficiency, you can begin to take the necessary steps to scale and grow your business. Growing your food and beverage business is like peeling back the layers of an onion – no pun intended. First you must have the vision and build the foundation. Next, you must build the layers that can support the growth of your brand and company.

Why is inventory control critical?

Inventory control is important for many reasons. Inventory control keeps counts accurate, helps you to make proper inventory management decisions, can eliminate waste, and ensures you have enough supply to meet demand.

How food and beverage businesses can benefit from inventory financing

Food and beverage businesses must have plenty of products or supplies to ensure a sale is never missed. It can be challenging to manage cash flow, especially when sales are growing. You may need to replenish inventory before you have funds for sold items, resulting in cash flow problems. In addition, inventory can tie up a lot of cash that may be needed to cover payroll, rent, marketing expenses, and so forth. The key to inventory financing is to find affordable inventory financing, which is easier said than done. That is until you discover Kickfurther. Kickfurther is up to 30% cheaper than other options. Kickfurther can provide your business with affordable, fast, and easy inventory financing.

Discover affordable inventory financing. . . visit Kickfurther today!

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How to Create Customer-Centric Order Fulfillment Processes: Simple Strategies for Optimizing Brand Experience

Posted on by Kaylyn Perry

Order fulfillment is an essential part of the ecommerce customer experience. Customers have high expectations for a streamlined buying experience, and anything can trigger them to opt-out of the purchase. For example, 33% of US shoppers will consider switching companies after just one experience of poor service.

Building an ecommerce business that achieves high growth can only be successful when the top priority is customer satisfaction. That’s why it’s important to think about order fulfillment as a means of delivering your brand rather than a product. Make the fulfillment experience unique and memorable so the value of your brand resonates with the end shopper.

Your most satisfied customers become loyal repeat buyers, who account for a sizable share of revenue. On average, over 40% of an ecommerce store’s revenue comes from just 8% of their most loyal customers. And what makes people become brand loyal? A combination of shared values, quality service, and overall satisfaction with the order experience.

 

Be Authentic and True to Your Brand Identity

All companies have unique brand identities, and they express those identities in different ways. Some place greater premiums on things like the unboxing experience for their customers with custom-built packaging applied to each delivery. On the other hand, some invest resources into customer service, creating a unique tone of voice and maintaining a single point of contact for brand consistency. Subsequently, this is a great way to enhance your brand identity by building a reputation as a company that genuinely cares about their customers.

Your identity influences everything, including how you store inventory, package products, and ship orders to your end customers. Likewise, it’s how you carve out your niche and establish a unique offer to stand out from the crowd.

Use your core brand values to build an authentic brand identity. Make everything that your brand stands for based around being as beneficial to your customers as humanly possible. Then, express those values throughout the whole order fulfillment process; from the point of transaction where the online sale is completed all the way through packaging, shipping, delivery, and even the return process, if it comes to that.

As a result, this strategy will reinforce the value of your brand, and how those values align with those of your customers throughout each phase of the order fulfillment process.

 

Plan for the Unexpected

Part of maintaining your brand identity means preparing for what lies ahead. That means being ready for changes you can anticipate and adapting to the most unpredictable possibilities.

To say that the entire world was upended by COVID-19 is an understatement. The past year and a half have been unprecedented, and it’s affected all of us in some form or another. In the early days of the pandemic, we saw some of the logistical challenges of order fulfillment play out in real-time. Organizations struggled to ship inventory like PPE to COVID-19 hotspots across the country.

People struggled to both place and receive orders due to lagging inventory in certain parts of the country. And tracking shipments from fulfillment centers to doorsteps proved especially difficult. On a macro level, the World Economic Forum reported a significant decline in US exports in the first few months of the pandemic, reaching a year over year low in May that left companies unable to deliver the types of buying experiences that customers expect.

The pandemic exposed a lot of these challenges and solving them must be a top priority. Over 50% of shoppers say convenience and value are the top reasons to try new places to shop. Let that be your raison d’etre: make your brand the most convenient and value-added ecommerce provider on the market. Live up to that pledge with order fulfillment that works.

 

Adapt With New Strategic Solutions

Now that the worst of the pandemic seems to be behind us, this is a great time for companies to:

  • Take stock of current fulfillment processes
  • Prepare for the next unprecedented event
  • Reassess how to live up to those customer expectations of speed, convenience, and value.

 

For example, you can improve how you ship orders nationwide by placing inventory in multiple fulfillment centers across the country. This reduces ground to cover between shipments so deliveries can be faster, easier, and done at a greater scale. You mitigate the risk of losing sales if one warehouse is forced to shut down or, for whatever reason, is unable to fulfill orders, which did happen for many companies in 2020.

At the height of the pandemic, companies like Amazon prioritized “essential goods” that left many Amazon sellers boxed in with no options to get inventory shipped out the door. Had they been connected to alternatives that welcomed DTC orders, many brands would have lived up to their order fulfillment pledges for their customers and maintained their levels of service. Selling through multiple channels reduces the risk of order paralysis, enabling more shipments to reach more destinations at faster and more convenient rates. Sticking with one distribution channel, like Amazon, limits order fulfillment, especially during times like the coronavirus pandemic.

With much of those difficulties now in the rearview, this is a great opportunity to look into tailored fulfillment services and expand the scope of your existing order fulfillment processes.

 

Use Seasoned Order Fulfillment Experts

Managing order fulfillment is a multi-headed process. It’s one of the foundational aspects of ecommerce. Therefore, you need an order fulfillment center with reliable, passionate employees and state of the art technology to ensure you deliver on customer expectations.

The right technology also provides real-time visibility into how orders move from storage, to packaging, to shipping, and delivery. This visibility provides clear and immediate answers about the process. Plus, if you have this information, you can be upfront and transparent with your customers about the status of each of their orders. That degree of transparency cements brand authenticity and improves customer satisfaction.

By choosing the right order fulfillment partner you can:

  • Deliver the voice, the look, the feel, and the identity of your brand
  • Integrate with any system, including shopping carts, marketplaces, EDI, or ERPs
  • Expand your global footprint with international shipping options
  • Manage return orders and processing

 

Collectively, all of the benefits of working with an order fulfillment partner will uphold the integrity of your brand identity, and deliver a satisfying experience to your customers.

 

Your Shoppers Expect Top-Notch Service; You Deserve it Too

You’re dedicated to providing an exceptional experience for your customer, so why shouldn’t you receive the same dedication from your order fulfillment provider? Our commitment to provide the highest quality customer service is what separates us from other order fulfillment companies, like those powered by Amazon.

We’re not just some middleman that outsources the work to oversee your orders. When you partner with us, you get a designated Account Manager, backed by a team of fulfillment and tech experts, who take the time to understand what you want to do and offer advice on how to best make it happen.

Our mission is to enable greatness in our clients, our community, our company, and ourselves. We genuinely care about you, your brand, the status of your orders, and your relationship with your end customers. That’s why we maintain long-term client relationships; people know what to expect when they work with our teams, and they value the support we offer to each and every one of our clients.

 

This is a guest post from One World Direct, experts in B2C and B2B order fulfillment since 1994. At OWD, one size doesn’t fit all. You choose the services you need, when you need them. Do you need custom pack-outs? Multiple integrations? Outsourced customer service? They do that. Plus kitting, returns, international shipping, and EDI. Whether you’re big or thinking big, they’d love to help. Visit One World Direct to learn more.

10 Tips for Maximizing your Brand Valuation

Posted on by Kaylyn Perry

The demand for eCommerce surged in the wake of covid 19. According to UNCTAD, the online share of the total retail sales increased from 16% in 2019 to 19% in 2020. Buyers are willing to pay more for Amazon stores due to the shift in consumer behavior and the increasing number of aggregators. For Amazon FBA sellers, how do you maximize your brand valuation to get the most from this important deal?

​Here are the top ten tips to maximize your brand valuation:

  1. Optimize Your Amazon Store

Amazon uses the A9 algorithm to determine product ranking in a way how Google’s search engine works. Google Search considers keywords while Amazon’s A9 algorithm focuses on sales conversions. The A9 algorithm improves the ranking of products with high conversion rates and sales history. High-ranking products validates your business proposition and in return, receives high-quality traffic. To maximize your brand valuation, optimize your Amazon store.

Optimization is essential for success whether you’re selling your Amazon FBA business now or later. But how do you optimize your store for the A9 algorithm? Enhance your product listing page by providing relevant content to drive traffic and conversion.

  • Optimize your product listing using the relevant keywords. 
  • Add high-definition images, videos, and benefit illustration to your product listing pages. You can use third-party software to implement these multimedia features in your store. 
  • Enhance content visibility and readability using concise bullet points.
  • Use an optimized product title for the A9 algorithm to crawl and index it.
  • Use informative descriptions to differentiate your products from the competition.
  • A/B testing

The idea is to optimize your content and pages to convey your unique brand story and influence shoppers’ buying decisions. Focus on demonstrating your products’ selling points and benefits over your competitors. Optimizing your listings for conversion is an effective way to boost traffic into your store, drive sales, and increase the overall value of your Amazon FBA business. 

  1. Fine-tune Your Inventory for SKUs

Aggregators tend to look for businesses that generate revenues from a handful of ASINs. Non-performing ASINs reduce your cashflow and undermine your overall business performance. To optimize your inventory, apply the 80-20 Pareto Principle. This principle asserts that 20% of all causes deliver 80% of outcomes.

The idea is to identify and prioritize best-selling products in your inventory. Review your catalog and drop non-performing items. You can sell slow moving products at a discount to entice buyers. Streamlining your inventory can improve your business performance and boost brand valuation. 

  1. Off-Amazon Branding

Building a community outside Amazon can boost brand equity. You can leverage social media platforms to drive traffic to your Amazon store. Focus your off-Amazon branding efforts on social media platforms that improve the credibility of your brand. Posting value-added content and social proof will go a long way.

Off-Amazon channel is also about diversifying your business profile and sales channels. If your business is primarily dependent on Amazon, there represents concentration risk. Events such as hero products being delisted, change in amazon inventory policy and downward price pressure can have an oversized impact on your business. The adage “Don’t put all your eggs in one basket” comes to mind. Establishing sales channels outside Amazon can improve the resilience of your business.

Here are a few strategies to diversify your sales channels:

  • Run Google ads with a discount for your product. Then link it to a landing page with an opt-in discount code for a sales funnel.
  • Leverage Amazon’s Multi-Channel Fulfillment (MCF) to sell through other sales channels.
  • Sell your products via social media. 

Diversifying your sales channels can increase your sales and improve your brand valuation. You can rely on an aggregator like Rainforest to take your Amazon brand to the next level. 

  1. Amazon Reviews

Reviews are essential for your store’s reputation and the popularity of your products. Seeking safety and comfort in the mass is ingrained in our DNA. This form of validation applies to both Amazon shoppers and aggregators. Most Amazon shoppers will consider other customers’ reviews before they make their purchase. Amazon businesses with positive feedback can attract and convert customers, which is important for buyers. So, how do you get more reviews? Offer excellent service and leverage automated software to request reviews from customers. Most aggregators require product rating of at least 4.5 stars. 

  1. Simplify Operation

The value of a business increases when it attains a structure and culture of its own, allowing it to operate seamlessly without much work from its owner. Aggregators are looking to acquire an asset that provides either cashflow or growth potential, not a job.

According to Jungle Scout, 57% of Amazon sellers work for less than 20 hours per week. To increase brand valuation, reduce the number of hours required per week. In today’s digital age, you can utilize several innovative options to attain hands-off operations. For example, you can outsource time-consuming business operations like social media scheduling to freelance virtual assistants or various automation software to free up your precious time. 

  1. Social Media

Although Amazon provides order fulfillment updates, it does not allow store owners to contact customers directly. These are Amazon’s customers after all. Expanding your audience beyond Amazon can help your business to connect and nurture long-lasting relationships with customers. The ability to interact with potential buyers can boost your brand valuation.

You can expand your audience by building your email subscriber list. Growing an email list allows you to run marketing campaigns outside Amazon PPC, FB advertisement or Google Ads. Social media and online communities can connect you to potential customers in your niche. An example: Mighty Patch leveraged on various social media handles to promote its acne patches. Within a span of 5 months, Mighty Patch acquired 2 million followers on TikTok and reached 4 million audience via social media. An engaged community is a validation of the brand equity. 

  1. Amazon Brand Registry

If you are selling your own private label products, Amazon Brand Registry is essential. This program provides greater control over Amazon storefront and product listing. It increases your sales and offers you better intellectual protection.

As a trusted seller, Amazon will unlock other functions, including:

  • The A+ Content Manager for testing product listing structure.
  • Robust analytics feature for easy access to data on customer search and purchase trends.
  • An easy-to-use store builder and templates for creating custom Amazon storefronts.

All these advanced capabilities can improve product listing and sales, leading to an increase in brand valuation. According to statistics, Amazon’s Brand Registry program surpassed 100,000 enrolled brands in 2020. Amazon brand registry is an essential part for brand building purpose. 

  1. Robust Supply Chain

Supply chain is an understated yet essential for any business. Its importance for Amazon FBA businesses has been realized in the past year due to COVID19. Stock out = No Sales!

Having a reliable and efficient supply chain can reduce stock out. This way, your listing will not be penalized by Amazon. So, how do you establish a secure supply chain?

  • Helpful to have two or more suppliers for any product.
  • Look for suppliers based in different countries.

Diversifying your supply chain builds resilience in your business. A strong relationship with suppliers is an asset. It can increase the value of your Amazon business and attract buyers. 

 

  1. Proper documentation

Aggregators like Thrasio, Berlin Brands Group and Rainforest will require proper documentation and financial records to assess your business valuation. Financial statements, receipts, trademark registration and patent certificate are essential. 

  1. Scaling your business

Expanding your target market increases your store’s growth potential and value. If you’re only selling on Amazon.com, leverage on Amazon’s Global Selling program or North America program. With Amazon Global Selling, you can leverage on existing ratings to grow your sales. 

Bottom Line

With the increasing vibrancy of the eCommerce sector, this inevitably creates a stronger interest in e-commerce brands. The best strategy is to utilize the most appropriate tactics based on your brand’s unique proposition and business model. Choosing the right buyer is paramount to the long-term success of your brand. 

This is a guest post from Rainforest. Rainforest buys e-commerce brands and build on its success. They believe in improving the brands’ longevity and financial returns. And typically take 7 – 8 weeks to finalize the whole acquisition process. To maximize your payout, get a valuation today!

Tips for Marketing on Social Media to Gen Z vs Millennials

Posted on by Kaylyn Perry

The power of millennial marketing should be addressed. In addition, Gen Z marketing is a game changer as well. Gen Z was born between 1997 and 2021, millennials were born between 1981 and 1996. In the Gen Z population, there are about 90 million members. Keeping a pulse on what millennials and Gen Z want and knowing how to reach them can accelerate sales. These categories of consumers are unique, and deserve special attention. Their ways can vary from that of other generations. A Morning Consult report, “Understanding Gen Z” interviewed 1,000 18 to 21 year old individuals. They found that just about half (49%) gather a vast majority of their news from their social media feed. Hence a perfect example why companies need to keep up with Gen Z and millennials. Your old fashioned TV ads, radio ads, billboards, and so forth may never reach them. Luckily, as technology advances companies can better segment their customers and find more ways to stay in front of them. Keep reading to learn more about marketing on social media to Gen Z versus millennials. 

Gen Z vs. Millennial Demographic Explained

The key difference between Millennials and Gen Z is the years that they were born. Anyone born anywhere between 1981 and 1996 is considered a Millennial. Anyone born in 1997, or later, is considered Gen Z. People who are currently being born are considered Gen Z until at some point in the future a consensus is formed that a new generation has begun. Other defined generations include Generation X and the Baby Boomers. If you are born anywhere between 1965 and 1980, you would be considered part of Generation X, where Baby Boomers would be considered individuals born between 1946 and 1964. But for the purpose of this article, we will focus solely on Millennials and Gen Z. Here are some key characteristics of the people from each of these generations.

Millennials: Millennials came to age during a very important and transformative time for not just the United States, but for the world. Older millennials most likely remember using card catalogs and the Dewey Decimal system in their school and public libraries before computers really became a central part of our everyday lives. Millennials saw the internet evolve from its earliest forms of dial-up and AOL to broadband and the rise of social media. These kinds of technological developments had a significant impact on much of the world. The way people communicate, the way they do business, and the way information is exchanged, all were transformed with the expansion of internet capabilities and social media usage. Millennials who grew up in the United States also lived through some major historical events that dramatically transformed the American way of life. The most significant historical event that Millennials experienced was 9/11, and then the subsequent War on Terror. The attacks of September 11th transformed how we live in many ways. From how we travel, to how the US Government obtains information from private citizens in the name of fighting terrorism. Additionally, Millennials were somewhat responsible for putting the first African American president in the White House in 2008. This was another significant moment in US history that defined the Millennial Generation and separated them from the previous political landscapes we saw during the Generation X and Baby Boomer years.  Millennials also lived through what is now known as the great recession. As many Millennials made their way into the workforce and attempted to become full participants in the US economy, there was a period of rampant unemployment and wage stagnation that still carries implications to the present day. Also, Millennials were, at a time, the most racially and ethnically diverse adult generation in history, that is until Gen Z came along.

Gen Z: Gen Z  is also coming to age at an interesting and transformative time in history, although in different ways than Millennials. What is most interesting about Gen Z is that they grew up with technology as a significant part of their life since birth. When the oldest individuals of Gen Z were 10, the first iPhone was released. Gen Z has always lived in a period when connectivity was constant and on-demand communication and entertainment were never non-existent. This constant connectivity and growing up in a social media-dominated society will have many implications in the future that will need to be studied to analyze their full impact. Additionally, Gen Z is coming to age in the time of COVID, and all the implications and ramifications that the disease, the lock-downs, and the political climate shapes our society. 

Although we have more evidence of how Millenials have been affected by the world that they grew up in, it is apparent that there is a clear distinction between Millennials and Gen Z. This distinction is important to make in order to properly reach an individual in either generation through digital marketing and social media ad campaigns. 

How does Gen Z use social media?

A great number of Gen Z individuals use social media as entertainment and a way to kill time. Social media is more ingrained into their everyday life as a way to kill time waiting in line for an event or riding the subway. Gen Z also expects companies to know them better based on their social media activity and interact with them with a more personalized experience based on previous interactions. They also are more prone to using social media to research new brands that they are unaware of. This means that as a small business, you may want to be creating content that promotes engagement while giving individuals the opportunity to make purchases directly from social media posts. Additionally, you will want to maintain an active social media presence that is quick to respond to inquiries, complaints, and compliments. 

How Millennials Use Social Media

As more Gen Z individuals use social media as entertainment and as a way to kill time, more Millennials see social media as a way to communicate and stay in touch with friends, family, and acquaintances. Millennials also use social media as a source of news and information, and as a way to stay connected to the world around them. Companies that can associate their brand with a lifestyle or a subject of interest, may do better connecting to Millennials who use social media to form online communities around certain activities.  Additionally, Millennials are more likely to use social media to address their high customer service expectations. If a company has done someone wrong, a Millennial is more likely to post on the brand’s social media page or send a private message to the company through a social media account. Just as much as Millennials will complain about bad customer service on social media, they are just as likely to rave about the great customer service they received. Keeping this in mind when addressing Millennials On customer service will go a long way to shoring up support among this generation. 

How are both generations similar?

There are many ways that Millennials and Gen Z are similar. Both generations feel that their employment should contribute to the greater good and that the company they work for, should have a clear mission statement along with defined values that detail how the company is contributing to the betterment of society. Both generations are tech-savvy and they have no problem navigating new technologies and applications they may be unfamiliar with at first. They are quick learners when it comes to technology. Both generations also depend on social media for many things. From finding a new restaurant in their neighborhood to reading reviews about a new face moisturizer, social media is a source of information that they rely on. They may also be critical thinkers who are more able to recognize false information on social media versus their baby boomer counterparts. 

How are both generations different?

The most obvious difference between Millennials and Gen Z is their age, which has many implications from what motivates them to what kind of life decisions they are currently making. Millennials may be buying houses, introducing their first child into the world, concerned about retirement savings. Gen Z may be more concerned with education, career advancement, and climbing the social ladder. 

Social Media Marketing for Millennial Tips

The best thing a company can do to foster a productive relationship with Millennials on social media is to be responsive to their praise, complaints, and inquiries on social media. Millennials expect superior customer service, and if their expectations are met, they may be the first to scream praise for your company from the mountain top. 

Social Media Marketing for Gen Z Tips

If you want to attract Gen Z to your brand using social media, you may want to ensure your content is engaging and responsive to the individual. Gen Z expects companies to personalize their experience. It may take a little more work to create personalized correspondence and attention for all your Gen Z customers, but doing so could result in building long-term, mutually beneficial relationships. 

How Kickfurther Can Help

As you begin making more marketing efforts, the investment requirement may increase, thus leaving your business in need of financing. In addition, as marketing promotes and converts sales you will need to ensure that you have a healthy inventory supply. At Kickfurther small businesses can secure the funding they need to grow their business. With a 99.5% success rate, Kickfurther is up to 30% cheaper than other options. 

Discover affordable inventory financing. . . visit Kickfurther online today!

How to Establish Credit for a Small Business

Posted on by Kaylyn Perry

A small business line of credit can improve cash flow while supporting the growth of your business. Even with a successful and profitable business, cash flow can be challenging. Commonly, businesses use a small line of credit to keep cash flow healthy and ensure they always have plenty of funds available. For small businesses, loans or lines of credit may be harder to secure. Small business loans may involve more risk for lenders, therefore, they may charge higher interest rates and fees. Finding affordable ways to borrow money for a small business can help keep profits healthy. Keep reading to learn more about how to establish credit for a small business and secure financing.

What Is Business Credit?

Business credit is similar to personal credit in which it is an evaluation of an entity’s ability to maintain a healthy financial situation by taking on debt and paying its bills on time and in full. Like personal credit, a business needs to build its credit profile over time by making monthly payments on time and by paying off old debts before acquiring new ones. There are many consequences, both positive and negative, depending on the credit score of your business. For example, a business that has a proven track record of financial stability and on-time payments, may see lower insurance premiums and lower interest rates on business loans and equity lines of credit. Some other positive consequences of having a good business credit score is you may be able to qualify for larger loan amounts with longer repayment periods. Additionally, if you have vendors that you do business with regularly, and they are aware of your good business credit score and you always pay them on time, they may extend to your business longer repayment terms which can help you maintain liquidity and a higher cash flow. Having a poor business credit score could lead to many unfavorable outcomes including paying higher interest rates, higher fees, and possibly being denied for the loan amount that you need. Also, vendors may feel the need to extend to your business some of the most strict terms they can offer or even require you to pre-pay for any orders that you place with them. 

Before you can start to develop a credit score for your business you need to make sure your business is legally registered as a business. There are several different types of business registrations you can choose from depending on what kind of business you are operating. Make sure you register for the business structure that makes the most sense for your situation and to seek professional assistance if you are unsure. Once your business is registered, loan payments and other credit account information can begin to be reported to the business credit reporting agencies. The type of information that often gets reported to these credit reporting agencies includes payments to vendors and suppliers as well as creditors. It is this type of information that formulates your business’s credit score. This credit score may affect your eligibility for SBA loans, term loans, and other types of business financing including net nerms and credit limits imposed by vendors and suppliers. The business credit score can also affect your insurance premiums, your ability to raise money from outside investors, and whether or not you qualify for contracts with other organizations. 

Business credit scores can range anywhere from 0 to 100. Many lenders may have minimum business credit score requirements that begin at 75.  

One last important thing to note is that even though some lenders, suppliers, and/or vendors may take into consideration the personal credit score of a business owner when they are applying for a business loan, a business credit score and a personal credit score are two entirely different things. As a business owner, it may be a wise decision to separate your personal and business finances as much as possible. 

Why Is Establishing Credit for a Small Business Important?

First off, a business credit score is important to show lenders, suppliers, and/or vendors how financially risky your business may or may not be. If you are a small business owner just starting out, you may not have a business credit score yet and you may need to rely on your personal credit score to obtain financing. As soon as you are able to begin working on your business credit score and separate your personal finances from your business, you should. Here are some of the main reasons why establishing credit for a small business is important. 

  1. Protect your personal credit score: Running a business is not cheap and you may need larger sums of money to hire new staff, purchase inventory, purchase real estate, or to cover one of the many other expenses a business encounters. By using your personal credit to obtain these larger sums of money, your personal debt utilization ratio can become extremely high. By having high credit usage, you can lower your personal credit score and you may find it difficult to secure financing for other things in your personal life, like a car loan or mortgage. 
  2. Obtain better terms with vendors: Vendors may also look at your business credit score to determine what kind of terms they can offer you. Common terms may include net 30, 60, or 90 days, or depending on your credit score, a vendor may ask you to prepay all your orders. The better your business credit score the more likely a vendor will trust you with larger amounts of inventory without needing to be paid back immediately. This allows your business to keep more cash on hand and to make vendor payments after you are already starting to generate revenue from sales from the purchased inventory. 
  3. Business financing is much more simple: When you have a higher business credit score, the process to obtain traditional types of financing from lenders or the SBA is much more simple and processing takes less time. You may also qualify for some of the better interest rates available depending on the business loan type that you pursue. Higher credit scores also are helpful to maximize your available credit limits when applying for business lines of credit. 

For any small business owner, having a good business credit score will go a long way to help your business expand and scale up at an appropriate pace. But what if you have zero or limited business credit? What can you do to improve your business credit score?

Tips to Build Business Credit

There are several things you may want to consider when you are first trying to build business credit or when you are trying to improve upon a less than desirable business credit score. Here are some of the most basic steps that you can take immediately. 

  • Obtain an EIN: One of the first steps to building business credit is to obtain an Employer Identification Number and to change your business entity to a corporation. This will help you to file taxes on behalf of the business as well as open a bank account under your business name. You can then also secure business contracts. 
  • Obtain a business credit card: Opening a business credit card is a quick and easy way to begin to build business credit. All payments made on the credit card will be reported to the major commercial credit agencies. 
  • Pay everything on time: Paying your business credit cards and vendors on time will help to build that credit score little by little. Any missed payments will not only hurt your credit score, but you could begin to build a bad reputation within your industry by missing payments to vendors. Vendors not only report payment information to the commercial credit reporting agencies, but they could also potentially talk among themselves and other vendors may be reluctant to extend your business any credit if you have outstanding bills with other vendors. 
  • Incorporation: At the same time that you apply for an EIN through the federal government you may want to incorporate your business. Doing so has numerous benefits including asset protection through limited liability, the ability to build credit and raise capital, hefty tax savings, and more. 
  • Break out personal vs. business expenses: As a business owner, separating your personal and business finances as much as possible is critical. 

These are just a few of the main ways you can begin to build your business credit score or to improve upon an existing one. It is important to not take on more debt than you can afford and to maintain good standing with all of your creditors. 

How Kickfurther Can Help

Establishing a small business and business credit can take time. As every business owner knows, time is money. Small businesses may struggle to qualify for financing. This is where Kickfurther can help. Kickfurther specializes in helping small businesses secure the funding they need to invest in inventory. Kickfurther is the world’s first online inventory financing platform that enables companies to access funds that they are unable to acquire through traditional sources. We connect brands to a community of eager buyers who help fund the inventory on consignment and give brands the flexibility to pay that back 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.

Discover affordable small business inventory financing. . . visit Kickfurther online!