Expanding your e-commerce business into new product lines and marketplaces can be both time-consuming and costly. Research and development, additional marketing spend and upfront inventory expense all present meaningful challenges when you’re ready to take your business to the next level.
Payoneer’s Capital Advance solution simplifies the expansion process by providing new working capital offers for each of the stores you manage with Payoneer. The funds are credited to your Payoneer account with the click of a mouse, while settlement takes place only after you get paid by the marketplace.
The Capital Advance ensures you’ll never miss another growth opportunity and can grow your business at your own pace.
Taking Your Business Abroad
Taking your business abroad is never easy, as it typically requires you to customize your product line for a foreign audience, figure out new ways to advertise your store and break into potentially overcrowded marketplaces.
The Capital Advance gives you the freedom to do these things and more. With offers as high as 100% of your monthly payment volume, you’ll be able to:
- Create new ad campaigns: Launching an effective ad campaign, especially in a foreign market, requires extensive research, planning and, sometimes, the use of local service providers. The Capital Advance can go a long way toward defraying these costs.
- Translate existing content: Understanding the nuances of a specific marketplace is critical for getting your brand’s message across to a new audience. When operating abroad, especially in a non-English speaking country, this means using a local translator to customize your existing content to reach as broad a customer base as possible.
- Account for different tastes: Although one of your products might be more popular than the others in the US, the same might not hold true abroad. Make sure to keep an open line to your manufacturers, as you might need to unexpectedly purchase additional inventory for one of your previously less-popular product lines. Additionally, some US marketplaces have specialties that might cause sales of some of your products to flourish more than they have previously.
- Sell the right products at the right time: Different countries have different shopping seasons, making it essential to strategically replenish your inventory at different times. For a list of holidays, tips and resources, check out the Essential 2019 E-Commerce Calendar: July-December.
Purchasing Additional Inventory
Expanding to a new marketplace requires purchasing additional inventory to meet the needs of your new customers. Here are a few considerations when determining how to best stock your store:
- Maximizing economies of scale — Your supplier is always going to want you to purchase more from them. Many times, if you can buy more stock you are able to get a discount on the overall price which could help your cost per unit. Use Capital Advance to lower your costs and never run out of stock.
- Unexpected sales volatility — Spikes in sales can happen for seemingly random reasons – think about a sudden new trend or a resurgence in the popularity of an old product. As these spikes can happen at different times in different territories, it’s important to have enough working capital on hand to purchase additional inventory.
Launching a New Product Line
Once you’ve established a foothold in a new marketplace or country, you might discover that your products aren’t converting as well as you originally expected. If so, it might be time to either launch a new product line or even a new private label business to differentiate your store and appeal to a new audience.
Developing a product requires research, additional manufacturing and new marketing campaigns. The Capital Advance can help ensure that you’re able to cover these new expenses as you scale up your business.
Partnering with Payoneer to Manage Your Funds
Payoneer provides a number of other services to help sellers succeed abroad, including:
- Low conversion fees — Convert your foreign currency back to your home currency at great exchange rates.
- VAT payment — Pay your VAT on European sales for free.
- Local currency payments — Pay your service providers and contractors in their local currencies.
Now, through our new partnership with ChannelAdvisor, all sellers will be able to take advantage of Payoneer’s services. Whether that is utilizing the Capital Advance product for additional working capital or helping you manage your international funds and make payments to your suppliers, Payoneer has you covered. To learn more, click here.
Blog post by Niva Kara. Niva is the Working Capital Product Marketing Manager at Payoneer, and has over a decade of experience in credit business for private consumers and SMBs.