How Can You Get Funding for Rapid Growth?
In the line of retail, funding is an essential ingredient for growth. Unless you have a large amount of capital in the bank, it is a very slow process to grow the business to the point where you can pay yourself a full-time salary and still be able to keep growing.
When you start an Amazon business, you can definitely start with a much smaller amount than if you were opening a physical store and still be able to grow, but that growth can be slow if you are starting with just a couple hundred dollars. It takes time to find the right product, make the sale, and then get paid by Amazon.
That last step can feel like an eternity if you are depending on getting the money back to be able to buy more products to sell. Once you start growing, there are ways to stretch your funds to get them to work for you in a more efficient way, such as only investing a certain percentage each week so that you can always be sending in merch to sell, and make your payments and profits more consistent, rather than spending it all at once and having a couple of big days, then nothing while you wait to get paid.
What If You Could Get Your Money Faster?
There could be another option to consider. What if you could make a sale today, and get the money as fast as tomorrow? You could keep rolling those funds back into your business and make those profits grow much faster than when you have to wait 2 weeks for Amazon to let you have it.
While it is best not to use this kind of service when you are just getting started, once you make about 10k in sales each month, you may want to look into a way to turn your profits faster and grow more rapidly.
Why is it best not to do this from the beginning? Because you are just learning. This is the time for baby steps. It is more important to focus on learning the business and processes before you try to spend larger amounts on inventory.
When you are just getting started, you are just learning what kind of things to look for that might be a good seller. You are more restricted in categories to sell in. You are still learning how to read a Keepa chart. There are so many things you need to learn as a new seller.
However, once you have grown to where you are doing about 10k each month consistently, that means you have more experience. You have a better idea of how to find the products to spend that money on. You are better at tracking your margins and expenses. And by this point, you will likely have a list of products you want to test, but just don’t have enough cash flow to make those purchases.
Once you get to this point, it may be worth exploring an option where you can get your money paid back to you immediately rather than waiting for the Amazon payout.
What Kind of Service is This?
There is a company that works with Amazon sellers to get our funds back to us faster so we can reinvest back into our business and grow at a much quicker rate. There is a charge for this service, though, and that is another reason it is best to wait until you have grown and have a good sense of the business.
The company is called Payability. They will work with you to help you grow at a much faster pace than waiting for Amazon to pay you.
There are a couple of things to take into consideration before signing up to their service. There is a fee that comes with it. They charge a 2% fee on your total sales. So if you are selling $10,000 in a month, their 2% would come to $200.
This is something that needs to be factored in before making such a commitment. Remember, we are trying to make decisions that will GROW our business, not shiny objects that sound good.
So make sure you know your numbers well and make sure this is a reasonable thing to pay for the service. As a business owner, it can be hard to want to pay that much money out to any service, but it seems like to will make you grow, rather than cripple you, it could be very much worth it.
How Does it Work?
If you choose to sign up for this service, it is good to know what you are getting into. To get started, they require that you have done over a certain number in sales for at least 3 months. They don’t want to sign up a brand-new seller that doesn’t understand what they are doing.
They will provide you with a new account that your Amazon payments will go into so that they are getting paid when they should. Each day, as you make sales, they will track them. Usually, once the product ships, whether it is FBA or FBM, that is when Amazon adds the funds to your “Total Balance”. This is the number you see on the top of your Seller Central page. Payability will track that number and release 75% of that amount to your usable funds the following day.
They will give you a credit card that allows you to immediately spend your available funds. You have the option to either use that card, which also give 2% cash back, or you can transfer the money into your business bank account. For fastest growth, the card they provide is very helpful. But if you are purchasing wholesale, sometimes the only way to pay is by bank transfers, so you may need to move it to your account before you can use it.
Either way, Payability is a much faster way to get your capital back fast and to be able to invest it right back into your business to keep it rolling.
Should I Sign Up?
Only you are in a position to make this decision. Take some time to really look at your numbers and see if it is a good fit for your business. If you are content with how Amazon payouts come to you, that is a better option since you avoid another expense. But if you feel like you need those finds faster and are able to reinvest them quickly, this may be a good option for you.
If you would like to sign up for Payability, click HERE. This is my referral link and it will get you $150 dollars as a bonus when you sign up with it and get approved. It will also help me be able to keep providing this kind of content free to business builders like you, so I really appreciate your support.