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7
MINUTE READ TIME
Published
March 14, 2024
|
Danielle Livy
|
Partner Spotlight

7 Benefits of Smart Ecommerce Financing Solutions

7 Benefits of Smart Ecommerce Financing Solutions

Table of Contents

Success in ecommerce hinges on the adept management of finances. As your business strives to stay competitive and adjust to evolving market trends, increasing Amazon fees, and changing policies, the role of efficient banking solutions cannot be overstated. Smart banking solutions that ensure you’re making the most of your time and money are an imperative for long term growth and profitability. 

While many sellers still elect to take a traditional banking approach and find comfort in the stability and expertise of longstanding major banks, there are just as many interested in exploring specialized alternatives. As a result, more and more alternative ecommerce financing solutions like fintech lending and merchant cash advance are entering the ecosystem. These solutions offer a wide range of tools, resources, and perks that make them incredibly attractive to sellers looking for a unique approach. By reimagining banking as a comprehensive and holistic financial approach, new banking solutions are breaking down the boundaries to improve money management and streamline cash flow. 

In this blog, we’ll explore the role of smart ecommerce banking solutions in maximizing your profits and driving growth. Additionally, we’ll reflect on the most important tools and features to look for when choosing a banking solution for your Amazon business. 

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Understanding Ecommerce Financing Solutions

Smart Amazon financing options involve all the innovative financial technologies designed to streamline and enhance banking operations. These solutions often leverage automation, artificial intelligence, and data analytics to provide more efficient cash flow management as well as comprehensive financial forecasts for your business. 

For ecommerce businesses looking to make the most of every dollar, finding a smart banking solution is essential. The right banking solution has the potential not only to improve your profit margins by saving you money and time, it can also help to expedite your cash conversion cycle driving sales and revenue for sustainable, long-term growth. 

Maximizing Profit with Amazon Financing Solutions

But how exactly does Amazon financing can help you to bring your business to the next level? Below are the key benefits of getting funded via alternative lending platforms versus traditional banking:

1. Real-Time Transaction Tracking

Ensure that you never lose track of a receipt or invoice by capturing every transaction instantly with your banking solution. This can be as simple as taking pictures of your receipts in-app for categorization or forwarding them directly to your bank account. 

While it might seem simple, automatically tracking and categorizing your transactions will save you time and stress during tax season. Not to mention it will ensure that you get the most from your tax refund by guaranteeing that all qualifying expenses can be easily deducted.

2. Opportunities for Funding

While it might seem counterintuitive, the reality is that many smart ecommerce financing solutions often are not an actual bank. Instead they are a banking tool that offer many of the same features as a traditional bank. This includes business bank accounts, debit cards, and, in some cases, funding opportunities.

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The ability to apply for and access funding offers within your banking solution for ecommerce can take your business to the next level by streamlining your cash conversion cycle and boosting cash flow to guarantee that you always remain positive. By applying within your smart banking solution, providers can easily access all the data necessary to make a personalized funding offer designed to help your business grow sustainably. And, the cherry on top is that working capital will hit your account even faster since it’s one seamless process.

Hand shows statistics

3. Forecasting Tools 

Despite all the technological advances for ecommerce businesses, tons of Amazon sellers continue to track their financial forecasts in simple Excel spreadsheets. While this may work when your business is just starting out, it doesn’t scale. Smart banking solutions for ecommerce will offer financial forecasting tools to help you visualize your growth and cash flow. 

By integrating forecasting tools with your bank account you’ll receive the most comprehensive picture of your financial health and have access to better projections for future sales. This will allow you to make smarter long term decisions for your Amazon business, from the size and scale of inventory purchases to whether or not you should invest more heavily into PPC and marketing.

When seeking financing for Amazon sellers, a lender’s focus often extends to your anticipated future sales. Take the Small Business Administration (SBA) as an example, which mandates a 12-month sales projection as part of the loan application process. Therefore, possessing an inventory management system equipped with an inventory forecasting feature is pivotal.

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With SoStocked, you can integrate historical sales data and upcoming marketing strategies (such as planned sales events, accounting for seasonality, recognizing growth trends, and incorporating promotional deals) to formulate a remarkably precise inventory forecast. This forecast serves as the foundation for building out a 12-month inventory and sales strategy, guiding your actions to align with the set projection.

4. Streamlining Financial Operations

Automation is a game-changer when it comes to funding your Amazon business. The best banking solutions today can automate time-consuming and tedious tasks such as invoicing, payments, and reconciliations. At the same time, this type of automation helps save time and stress by ensuring accuracy and reliability in financial operations. Additionally, ecommerce financing solutions that offer supplementary financial tools, such as funding and forecasting, ensure that you have a seamless experience.

5. Enhancing Financial Visibility

Real-time insights into cash flow and overall financial health are essential for making informed decisions. Smart banking solutions provide this visibility, allowing businesses to track transactions, monitor expenses, and plan effectively for the future. By maintaining a clear picture of your cash flow and available capital you can also implement smart strategies for long term success, such as a growing emergency fund and “Sleep Well at Night” buffer.

6. Cost Savings

Cost Savings

Manual errors and administrative tasks can be resource-intensive and costly. Smart banking solutions reduce reliance on manual processes, minimizing errors, and streamlining operations. This, in turn, leads to significant cost savings, allowing businesses to allocate resources more strategically. 

Many banking solutions for ecommerce also offer better terms and conditions for financial success, including zero fees and a yield interest rate. Although these fees might seem like small places to save they can have a big impact on your bottom line overtime.

Achieve more cost-savings by getting back what Amazon owes you. Many sellers may be oblivious to the fact that there could be unclaimed Amazon reimbursements, ready for disbursement upon request. Discovering and filing claims for these reimbursements is an option, and various services can assist you in the process. For instance,Seller Investigators specialize in locating, filing, and ensuring reimbursement for these unclaimed funds. Moreover, there might be chargeback fees awaiting recovery. Luckily, chargeguard service identifies and recovers these funds owed to you, which you can then strategically reinvest back into your business, offering a valuable boost to your financial resources.

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7. Revenue Growth

Faster payment processing is a direct result of smart banking solutions. The ability to process transactions swiftly improves cash flow and liquidity, contributing to overall revenue growth. Moreover, the enhanced financial visibility enables businesses to make informed decisions that positively impact their bottom line.

When applying for an online loan, getting your business data organized is not just a procedural step; it is a strategic move that can significantly impact the success of your loan application. It positions your business as a reliable and informed borrower, increasing the likelihood of securing the financing you need. If you need to access and organize your data efficiently, leverage analytics tools like ManageByStats and D8aDriven. These tools feature automated reporting, statistics, forecasting, actionable insights, and more so you can gain a clear understanding of your financial standing.

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Unlocking Opportunities: Funding and Forecasting with Amazon Financing

Maximizing profits on Amazon necessitates efficient financial management. And smart banking solutions for ecommerce, inventory management software, and analytics tools are key players in achieving this goal. By streamlining operations, enhancing visibility, reducing costs, and driving revenue growth, these solutions empower ecommerce businesses to thrive in a competitive digital landscape. 

As we look toward the future, comprehensive ecommerce financing solutions like Viably, which offers an all-in-one financial management suite, have the capability to scale your business effectively and sustainably. By offering new possibilities and opportunities for growth through funding and forecasting, along with a seamless banking experience these providers are changing the way sellers view the intersection of ecommerce and banking.

RELATED: Unconventional Financing for Amazon Sellers: Finding the Money

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