How to Grow Your Amazon Business with Payoneer's Capital Advance Product

Published November 20, 2020 by WC Team

Ways to Finance Growth for Your Amazon Business

Online marketplaces have democratized the sale of goods around the world and being an eCommerce merchant is a completely viable career path in the Digital Age. There are never-ending lists of items that you could sell, but the key to success is growth and we’re about to break down the ways you can grow and how to finance that growth when selling on Amazon both in the United States and beyond. 

3 Key Concepts for Growing your eCommerce Store

Before we can get into your financing options, we need to understand what are your growth goals and what exactly are you going to need to finance? There are three easy avenues to explore when it comes to increasing your revenue and profits:

  1. Inventory What products are you selling? By finding other products that your customers may also enjoy, you can stock more items to increase your sales. For example, if you currently sell cameras, you could also branch out to include cases, lenses, and other camera related accessories.
  2. GeographyWhere are you selling? Open stores on other international marketplaces to increase the number of potential customers you could be selling to and grow your business. Your Amazon US store might be doing well, but if you also sell on Amazon UK or on other marketplaces entirely, you could open new streams of revenue.
  1. MarketingHow do you find your customers? There are some quick things you can do to optimize your store to rank higher for the right keywords and to appear first in the buy box. However, you should also consider things like digital advertising to really get your store out there. You can also hire a variety of freelancers or companies that specialize in these things to help you out.

Whether you choose to add more products to your listing, expand into new markets entirely, or just hire a consultant to give you an edge online, there’s one common denominator. You’re going to need more funds! 

How to Finance Growth as an Amazon Seller

There are several options to choose from when it comes to getting financial help to grow your Amazon store. Here’s a list of popular options that have proven successful.

Loans - Business Term and Personal

A business term loan is a lump sum of capital that is repaid with regular payments at a fixed interest rate. This traditional financing option can be found at banks and credit unions, and more recently is offered by online direct lenders. Loan amounts vary widely depending on your Amazon business’s revenue and your credit history and qualifying for them can be challenging. Like business term loans, personal loans also require you to qualify, however instead of using your business to determine your eligibility, you’ll need to rely on your credit score. 

Most lenders will need the same basic information in order to consider you for a business loan or other similar funding options for your online store. These are some of the documents you may need to present in order to secure working capital as an Amazon merchant:

  • Business and personal tax returns
  • Business and personal bank statements
  • Profit and loss statements
  • Business plan
  • Financial records
  • Credit history

Once you’re prepared, you can determine what seller funding options works best for your store and your needs, goals and potential.

Credit Card Financing and Business Lines of Credit

With often sky-high high-interest rates, using your business credit card as a financing solution may cost you big in the long run. While it may be tempting to cover some short-term expenses, make quick seasonal purchases and unforeseen product procurement or get your Amazon business stocked quickly. If you decide to finance with a credit card be sure to repay the full amount as soon as possible or negotiate the lowest interest rates available.

Not unlike a credit card, a business line of credit gives you the ability to use money for purchases or cash withdrawals up to a set amount. Loan amounts from a line of credit vary widely, like business term loans, and will largely depend on the eligibility of your Amazon business.

Loans and credit cards are viable ways to grow your business, but Payoneer is offering the Working-Capital community a new approach to easing their cash flow - the Capital Advance program.

Capital Advance from Payoneer

Payoneer’s Capital Advance can help you grow your business by offering short-term cash boosts that can help with day-to-day needs and inventory costs. As you accept and successfully settle your Capital Advance offers, you can become eligible to receive larger cash injections to really kick business growth into gear. 

The size of the offers you receive will depend on your online store’s sales performance, but all working capital offers include three great features that make Capital Advance the ideal cash flow management solution:

  1. Instant funds with no credit checks

Payoneer extends working capital offers based on your marketplace sales history and you can get the funds in your Payoneer account with just a few clicks.

  1. Gradual settlement from marketplace sales

Once you accept the offer, Payoneer will collect a portion of your future marketplace sales. That means they only get paid when you do, while leaving you with cash to maintain your business between payout dates. After an offer is completely settled, a new offer will follow it, subject to eligibility requirements.

  1. One low, fixed fee

There’s nothing worse than the surprise fees and hidden costs that can really impact your bottom line. With Payoneer, you’ll only be charged one fee after you finish settling your advance and you’ll see the fee amount before you accept the offer.

So if you are looking to grow your eCommerce, click here to learn more about working capital, or contact Ben Stein at Payoneer (benst@payoneer.com) today.

Company Bio

PayoneerPayoneer’s mission is to empower businesses to go beyond – beyond borders, limits and expectations. In today’s digital world, Payoneer’s platform streamlines global commerce for millions of businesses from 200 countries and territories, delivering a suite of services that includes cross-border payments, working capital, tax solutions and risk management.

Are you a business owner? Apply for financing. Start Now.

0 Comments