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

Posted on by BJ Scott

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

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

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

Protect Your Search Rank and Visibility

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

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

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

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

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

Protect Your Buy Box and Inventory Levels

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

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

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

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

Protect Your Listings from Hijacking and Counterfeits

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

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

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

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

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

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

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

Protect Your Product’s Reputation

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

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

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

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

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

Get Notified and Fix Issues Quickly

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

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

The Pros And Cons Of Leasing Vs Purchasing Warehouse Space

Posted on by Kaylyn Perry

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

The Pros of Leasing Warehouse Space

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

Lower upfront costs:

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

Flexibility:

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

Tax Benefits:

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

The Cons of Leasing Warehouse Space

Higher monthly costs:

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

Less control:

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

Uncertainty:

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

The Pros of Purchasing Warehouse Space

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

Ownership:

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

Long-term stability:

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

Potential for equity growth:

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

The Cons of Purchasing Warehouse Space

Higher upfront costs: 

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

Less flexibility:

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

Tax implications:

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

Closing thoughts

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

How Kickfurther can help

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

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

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

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

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

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

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

Posted on by Kaylyn Perry

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

Importance of planning of cash flow for seasonal eCommerce businesses

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

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

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

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

Identify the peak and slow seasons for your business.

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

Forecast the 12 months.

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

Diversify your income streams.

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

Forecast your cash flow.

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

Manage your inventory.

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

Control your expenses.

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

Get financial help if needed.

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

Closing Thoughts

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

How Kickfurther can help

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

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

Why Kickfurther? 

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

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

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

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

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

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

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

5 Ways You Can Benefit From AI in Ecommerce

Posted on by Kaylyn Perry

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

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

What is AI?

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

How is AI being used in eCommerce?

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

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

5 Ways You Can Benefit from AI in eCommerce

1. Personalized product recommendations

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

2. AI chatbots

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

3. Customer segmentation

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

4. Smart inventory management

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

5. Business loan underwriting

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

Future of AI in eCommerce

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

How Customers Can Be Better Served with Kickfurther

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

How Kickfurther can help

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

Do you need more reasons to choose Kickfurther?

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

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

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

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

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

Obsolete Inventory: How to Identify, Manage, & Prevent It

Posted on by Kaylyn Perry

Efficient inventory management is crucial for streamlined operations. Despite the ideal goal of selling every purchased item, the reality often involves challenges like losses and obsolete inventory that may require write-offs. Our focus is on helping small businesses address issues related to obsolete and excess inventory.

As a platform facilitating inventory funding for small businesses, we aim to support you in effective inventory management, ultimately enhancing your eligibility for funding. Once funded, proper allocation becomes vital, highlighting the continued significance of inventory management. Kickfurther specializes in providing businesses with affordable inventory funding, delivering flexibility and control over working capital. We believe in reshaping the funding landscape to align with the needs of growing businesses and contributing to their success stories. Regardless of preconceived notions about inventory funding, we are dedicated to challenging them and guiding you toward a path of success.

But first, let’s learn more about obsolete inventory, what it is, and how to avoid it. 

What is obsolete inventory?

Obsolete inventory is often referred to as excess or dead inventory or stock. Businesses classify inventory as dead if there is a lack of demand and believe they will have difficulty selling it. When inventory becomes obsolete, it ties up cash flow and space, both of which are valuable. Therefore, you will want to find a way to liquidate the inventory, or write it off and get rid of it. In some cases, obsolete inventory may be unsellable, which can leave you with fewer options. In addition to finished goods, raw materials can become obsolete, creating the same obstacles. In some cases, obsolete inventory is the result of poor planning, but there’s also the element of unpredictability.

The likelihood of having obsolete inventory can also be influenced by the industry in which you operate. For example, companies that sell perishable goods face more obsolete inventory than a company that sells plastic ware. As a business owner or manager, you will need to define obsolete inventory for your business and have a system to identify it. By effectively monitoring inventory, you can identify slow-moving products faster and improve forecasting. Both of which can help you maintain healthier inventory management.

Why obsolete inventory is a problem

Obsolete inventory is a problem because it ties up cash flow. Inventory is usually a business’s biggest expense. Holding inventory or raw materials that you cannot sell or turn a profit on can lead to big problems. Whether you choose to donate the inventory and use it as a write-off or liquidate it and take a loss (you can write down the loss), you should find a way to eliminate the obsolete inventory. In addition to cash flow, obsolete inventory takes up valuable space. 

Tips to identify and avoid obsolete inventory

The best way to identify and avoid obsolete inventory is to leverage an inventory management system. Most inventory tracking systems offer features such as real-time inventory tracking, automated replenishment, product categorization, and so forth. All of these features and more can help you better manage inventory and identify dead stock. Here are some tips on how to identify and avoid obsolete inventory.

  • Invest in an inventory management system with demand forecasting: Historical sales and market trends can help you understand what sells and what volumes you need. With this information, you can make better predictions about future demand and sales, thus allowing you to purchase inventory more accurately. 
  • Utilize lean manufacturing processes: Lean manufacturing processes focus on minimizing waste, such as dead inventory. You can run more efficient operations by focusing on efficiency and profit margins. You can also take the approach of Just-In-Time production, which entails only restocking goods or producing goods as needed.
  • Regularly review inventory levels: Just because you have a sophisticated inventory tracking system does not mean you can manage inventory hands-free. Get involved, continue to find ways to improve reporting, and review inventory levels regularly to ensure the system is doing its job. 
  • Monitor market trends regularly: As you try to stay one step ahead, it can be challenging to predict the future. Monitoring market trends by leveraging social media interaction, historical sales, emerging trends, and so forth can help you avoid obsolete inventory in the future. 

Managing obsolete inventory

Utilizing an effective inventory management system is the best way to manage obsolete inventory. Once you’ve identified obsolete inventory, consider the following methods for getting rid of it. 

  • Offer discounts for bundling
  • Remarket the items to help them sell 
  • Run sales or promotional pricing 
  • Find ways to liquidate or donate and write off the inventory 

How to prevent obsolete inventory

To prevent obsolete inventory, implement an advanced inventory management system that features demand forecasting. Additionally, perform regular audits of inventory. If you do not have an inventory tracking system in place yet, you will need to find ways to track inventory and demands to the best of your ability. When you’re just starting, it can be challenging to find the cash flow to invest in an inventory management system. However, doing so can save you in the long run while helping you grow faster. If you need working capital or funding for inventory, turn to Kickfurther for affordable funding that puts you in control of the business you’ve worked so hard to create.

Closing thoughts

Product businesses face high inventory costs. Keeping a pulse on what’s in stock, what’s selling, when to restock, and other important factors can help you maintain healthy cash flow and sales. If you have dead inventory, don’t ignore it. Invest time to address it and find ways to reduce or avoid it moving forward. If you opt to use inventory financing, backers or lenders will likely want to review your sales and inventory systems. Investing in advanced and efficient inventory monitoring systems can help you grow your business and secure additional funding, as needed.

How Kickfurther can help

Inventory can tie up cash flow, hence why obsolete inventory should be addressed sooner rather than later. You may need to leverage inventory funding to ensure you are investing in ways to grow your business and not just trying to keep up with inventory demand. Doing so can free up working capital to upgrade inventory systems and hire the right people. And that’s where Kickfurther comes in.

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

Do you need more reasons to choose Kickfurther?

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

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

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

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

Kickfurther puts you in control of your business while delivering the costliest asset for most CPG brands. With more free cash flow you can allocate more resources toward ensuring inventory is properly managed, thus avoiding obsolete inventory.

Role of Information Technology in Inventory Management

Posted on by Pavel

Technology has completely transformed the way owners run their businesses, including the practice of inventory management. IT inventory management can improve efficiency and help businesses operate lean. Inventory is one of the company’s largest expenses, so managing it properly is critical to operations and the bottom line. Utilizing inventory financing can help companies free up cash flow to invest in other growth avenues, such as IT inventory management systems. At Kickfurther, we help businesses obtain affordable inventory funding without giving up control of their company and working capital. As a non-dilutive funding solution, companies can take advantage of flexible repayment schedules and a platform that showcases their products to attract partners who love what they do. 

Ensuring you properly manage your inventory is an important first step before obtaining inventory funding. Here’s what you should know about IT and how it can improve inventory management. 

How IT Can Improve Inventory Management

Advanced inventory management systems can reduce errors while helping businesses operate more efficiently. When it comes to managing inventory, there are a lot of moving parts to compartmentalize. Trying to manage it manually is possible. However, it is nowhere near as detailed or effective as using an IT inventory management system. From demand forecasting to reports at the click of a button, investing in ways to improve inventory management will pay off in the long run. Here are some highlights on how IT can improve inventory management.

  • Automation of tasks: IT inventory management can automate tasks that once required human labor. From counting inventory to notifying when it’s time to reorder, advanced IT inventory management systems can do it all. Additionally, they can track demand, seasonal trends, and just about anything you program them to be capable of. As you shop inventory management systems, drill down on your needs and see how the system can be customized to meet your needs. 
  • Better accuracy: When it comes to inventory, accuracy is extremely important. Accurate inventory counts can help you determine when to reorder, identify loss faster, and predict seasonal demands. Advanced IT systems can possess sophisticated forecasting models that can help you stay one step ahead, thus improving efficiency and cash flow. 
  • Improved insights: When making business decisions, you need the right information. IT inventory systems can provide detailed reports and insights that can help you identify trends and make better business decisions. Systems can adapt to your business to provide forecasting predictions that would be extremely labor-intensive for a human to replicate. While IT inventory systems can deliver valuable insights, you will want to know how to interpret them to leverage the information properly. 

The Benefits of Using IT for Inventory Management

  • Reduced costs: IT can help businesses to reduce costs by automating tasks, improving accuracy, and providing insights. While human labor is often still needed, you can upgrade the type of labor you need, thus employing more educated individuals to help you monitor your biggest asset. With the information provided by the inventory management system, you can improve management information systems and inventory flow to reduce costs even more. 
  • Improved customer service: IT can help businesses improve customer service by ensuring they have the products that customers want when they want them. When the online platform says you have the product in stock, you really should. With an IT inventory management system in place, you can avoid losing a sale or not being able to deliver for a customer due to a wrong inventory count. Additionally, IT inventory management can help you fulfill orders faster. From the speed you receive orders to the preciseness of finding where the inventory is located, you can create a seamless internal process that will impact the customer’s experience. 
  • Increased efficiency: IT can help businesses increase efficiency by streamlining processes and reducing errors. Efficiency is important when it comes to managing the operations of a business, including inventory. You want processes to make as much sense as possible. IT inventory management systems can help you stock just the right amount of inventory, provide notifications when it’s time to reorder, provide exact inventory locations, and so forth. All of which are examples of how it can increase efficiency. 
  • Enhanced decision-making: IT can help businesses make better decisions by providing them with real-time data and insights. Learning how to customize and understand these insights will be important. Forecasting demand is a game changer when it comes to stocking the right amount of inventory and avoiding obsolete inventory or dead stock. 

Closing thoughts

Inventory can consume cash flow. To support growing operations, you will need plenty of cash on hand. You can free up cash flow and invest in growth operations by using inventory financing. While this sounds like an ideal solution, it may be one you have explored, only to be detoured by high costs and barriers. Founded by an entrepreneur who once encountered similar challenges with inventory financing, Kickufurther is designed to truly help small businesses grow by providing the funding they need at a price they can afford.

How Kickfurther can help

Inventory funding can help you keep more inventory on hand while maintaining a healthier cash flow. While inventory funding comes at a cost, it can still be worth it. At Kickfurther, we are proud to offer authentic care for community business owners and backers while delivering funding up to 30% cheaper than comparable options. Kickfurther funds up to 100% of your inventory costs on flexible payment terms you customize and control. 

Need more reasons to choose Kickfurther?

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

Kickfurther puts you in control of your business while delivering the costliest asset for most CPG brands. By funding your largest expense (inventory), you can free up existing capital to grow your business wherever you need it (hint: inventory management system).