Every successful business eventually faces the need to seek financing to drive its growth. As sales start to increase, new challenges arise, and it becomes necessary to take action to maintain momentum.

Inventory needs replenishing, product catalogs need expanding, investments need to be made in advertising campaigns to increase offer visibility, etc.

However, cash flow becomes an obstacle in this process.

Challenges of cash flow

When selling through Amazon, funds are not immediately available. Depending on whether Amazon’s logistics services are used or if the seller is responsible, it takes approximately 14 days before the money from a sale can be used. This hampers cash flow and ultimately harms business revenue.

By acquiring financing, growing businesses can address these problems. At Fairplay, we know that credit is the engine of growth when used appropriately, which is why we want small and medium-sized retail businesses to access the working capital they need. However, like any tool, it must be used properly to achieve the best results.

Next, we will discuss three ways Amazon sellers can use financing to help their businesses continue to grow.

1.- Maintain available inventory.

At first glance, selling a product quickly and running out of stock may seem positive for a seller; however, this can have a negative impact on Amazon’s search engine ranking.

For a marketplace, it is a risk for a potential buyer to search for a product and find it out of stock. Not finding what they are looking for, the user may try to find it with competitors, postpone their purchase, or even not make it. To avoid this, the platform prioritizes sellers with more inventory in the search engine and places those with less availability lower.

This is where financing comes in. By not having to wait for capital to become available, businesses can anticipate their sales and always have inventory available. This availability allows them to boost sales, obtain good user reviews, improve their reputation as sellers, and maintain a good position in the platform’s search engine.

2.- Improve your reputation as a seller:

After Amazon’s A10 algorithm update, which is responsible for sorting search engine results within Amazon, a seller’s reputation and authority are more relevant than ever.

Amazon considers several factors to determine a seller’s reputation, including:

• Offer of available products
• Quality of customer service
• Seller rating
• Rating and comments on the products
• Time the seller has been on the platform.

By obtaining financing, it is possible to strategically invest to improve reputation on Amazon. A good option is to increase the available catalog. Stores that have a wide range of products can cover various user needs and cover more categories, increasing the likelihood that a buyer will purchase several things in one purchase.

3.- Amazon Ads:

Investing in advertising increases visibility within the store, reaches more customers, and increases sales. But it must be done strategically. Acquiring financing to use it in ads is an excellent way to drive business growth.

Through Amazon Ads, platform sellers can manage their PPC campaigns. They can analyze their campaigns and set up how their investment is spent according to the results they seek. It is also one of the variables that Amazon’s search engine algorithm takes into account.

To make the most of ads, it is advisable to consider the following points:

Constantly monitor keywords:

Identify which keywords are most relevant to your audience using Amazon’s platform tools. Review and adjust constantly. If you notice that the results are not as desired, consider experimenting and testing with new words.

Seek the best return on investment:

According to JungleScout, 59% of Amazon sellers are concerned about the increase in the cost per click of advertising on the platform. This is due to the increase in users and consequently in competition.

But to ensure a higher return on investment, focus your advertising on products with a higher profit margin. This way, even if the cost per click increases, you will maintain healthy margins.

Flexible financing that adjusts to your needs:

These are some ways you can use financing to give your business the boost it needs. At Fairplay, we know that every business has its own needs, which is why we offer flexible working capital to help businesses achieve their business goals.

We want more and more retail companies to have access to the financial tools they need to continue growing.

If you want to know more about how Fairplay helps businesses in the retail sector grow, visit www.getfairplay.com or follow them on their social networks.