How Online Sellers Can Leverage Working Capital For 2021’s Holiday Season
The winter holiday season offers the BIGGEST opportunity for eCommerce sellers to drive big sales and earn a substantial amount of revenue. Consumers are eager to shop for their loved ones and tend to splurge as a result of the holiday spirit.
But in order to make the most out of this seasonal opportunity, you need to be prepared. Planning ahead is the secret to a successful holiday season – but most importantly, you need enough funds to carry out your plans and a working capital solution can help with just that.
Here we’ll go over how you can take advantage of working capital to make the most out of the holiday shopping season and scale your business.
1. Grab The Best Deals Early On
In an ideal world, you’d want to enter the holiday shopping season with your inventory fully stocked and optimised, but let’s face it, competition is fierce. In order to offer customers the lowest prices, you want to pay less to your suppliers. To get the best deals from your vendor, you should place your order early – during the slow season, specifically during the summer.
However, the challenge is having enough cash on hand to pay for your order, even though business will pick up again once the holiday sales start. You don’t want to have to ask your supplier for credit, because then you won’t get the best price deal. With a working capital solution, you can get the extra funds you need for your inventory way ahead of the holiday season, that way you enter the holidays already prepared.
2. Increase Visibility
The best time to launch your marketing campaigns is right before the start of the holidays. You want to increase your social media presence before all the noise of holiday shopping start up. Research has shown that it can take up to 4 months for a marketing campaign to have the maximum impact on sales – another good reason to begin your holiday sales pitch early.
Perhaps you’d like to hire a new employee to focus on marketing, or to increase your existing worker’s hours so that he or she has more time to spend curating your Instagram feed and Facebook page. With working capital, you can access these crucial funds even if business is slow. You’ll be able to draw on vital cash for marketing ahead of time, pay for advertising costs and then pay it back gradually when your marketing campaign starts bringing in higher sales income.
3. Update Your Sales Process
Ideally, your order fulfilment process should be perfectly tuned and working at maximum efficiency before the holiday surge hits. The busy holiday season isn’t the time to repair your sales process and find ways to make it more efficient. If you’re thinking of adding new delivery options, switching fulfilment partners or upgrading your software, you’ll want to do it during a slow business period.
Business equipment and software upgrades can be expensive – but do you have the working capital available during slow periods? If you have to wait until your sales increase before you can improve your business system, you’ll miss out on the full benefit of your improvements. A cash injection allows you to optimize your sales process without pressure, so that you can enjoy elevated sales and settle the funds back when demand kicks in.
4. Offer Big Discounts & Offer Them Early
Flash sales and large discounts can be very effective ways to draw attention to your online store and boost your sales. However, they need to be used wisely and at the right time, and you have to make sure that you have enough cash to actually cover these discounts.
With working capital, you can finance this slash in prices without losing valuable funds to run your business. You’ll be able to keep everything running smoothly even while your cashflow drops a little in response to your special offer and settle the working capital when your sales pick up again thanks to all the increased interest in your products.
Prepare Your Business For The Holidays With Payoneer’s Capital Advance
To help you maximize the holiday shopping season, Payoneer’s Capital Advance can offer you a new approach to easing your cash flow.
Capital Advance can help you grow your business by enabling you to receive extra working capital funds in minutes. You can use these funds to pay for more inventory, marketing campaigns, updating your business software, expanding your staff and more.
Our working capital solution can essentially give your business the extra boost it needs, just in time when you’re preparing for the holidays, with up to $750K instantly along with a convenient gradual settlement plan and one attractive fixed fee, leaving enough funds to manage daily expenses.
Want to learn more about how Capital Advance can help you scale?
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