Running a successful Amazon wholesale business requires constant juggling between sourcing profitable products, managing inventory, and monitoring prices and competition to grow your sales while protecting profit margins. It’s a high-stakes game where even the smallest delay in cash flow can derail growth.
For wholesalers who operate on tight margins and need to make strategic investments to scale, continuous working capital infusion can make all the difference. In this blog post, we’ll explore how continuous funding can relieve your cash flow pressure points, allow you to grow faster, and help you maximize profitability.
Amazon Wholesalers: It's all About the Margins
Amazon wholesale sellers deal with unique challenges that make cash flow management critical. Here are just a few:
- The Fight for Profit Margins
Margins for Amazon wholesalers can be razor-thin, especially when factoring in Amazon fees, shipping costs, and returns. Taking advantage of supplier discounts for early payments in full can be critical for keeping healthy margins and sustaining your business.
- High Inventory Costs
Wholesalers want to buy large quantities to secure the best prices and volume discounts, but this requires a significant upfront investment. Without proper funding, you might miss out on these opportunities, leaving money on the table. - Quick Inventory Turnovers
Unlike other eCommerce sellers, wholesalers require a much greater purchasing frequency, with inventory turnovers as quick as 6-8 weeks. This means that you need working capital available at the same frequency to align with your cash conversion cycle. - Supply Chain Pressures
Competition for high demand products and supply chain disruptions often force wholesalers to keep their inventory well stocked well in advance. Without sufficient capital, you may find yourself at the end of the line for the most sought out products. - Seasonal Demand Fluctuations
The holiday rush or Prime Day promotions require sellers to heavily ramp up their inventory, which can strain cash reserves.
“You lock up so much money while you’re waiting for your inventory to come in, and if you’re growing you have to keep buying more. But you still have to wait to get that cash back, so it’s a really big issue.” - Michael Shackelford, Owner, Design Racket
A Helping Hand: Continuous Working Capital
Continuous funding is a flexible financing model designed for Amazon eCommerce wholesales like you. Unlike traditional loans or lines of credit, continuous funding provides predictable injections of working capital at regular intervals—as short as every four weeks—tailored to your specific cash flow needs.
Here’s how it works and why it’s a game-changer for Amazon wholesalers:
Keep Products Moving: Never Run Out of Inventory
One of the biggest threats to your wholesale business is running out of stock on top-performing items or just when products are in high demand such as in the runup for the holiday season. When payments take longer than expected (and let’s face it, they often do), continuous funding ensures you always have the cash you need to restock.
By maintaining sufficient inventory levels, you won’t miss out on sales opportunities or risk losing your product rankings on Amazon.
Keep More of Your Margin: Maximize Supplier Discounts and MDFs
Many suppliers offer early payment discounts or Market Development Funds (MDF) to wholesalers who settle invoices ahead of schedule. With continuous funding, you can pay suppliers early and in full, securing these cost savings and building stronger relationships with your suppliers.
For example, let’s say your supplier offers a 2% discount for payments made within 10 days. On a $50,000 order, that’s $1,000 back in your pocket—money you can reinvest in growing your business.
Keep Growing Demand: Scale Your Advertising Efforts
Advertising is critical for maintaining visibility on Amazon, but a limited ad budget can restrict your growth. With continuous funding, you can consistently invest in Sponsored Product Ads, driving more traffic and sales to your listings.
This is especially important for seasonal spikes or new product launches, where aggressive advertising can make all the difference in capturing market share.
Keep Your Working Capital Funding Aligned with Your Cash Conversion Cycle
Aligning your funding with cash conversion cycles is critical for capital efficiency. For example, when your cash conversion cycle is 30 days and you take a 12 month term loan, you end up repaying the loan for an additional 11 months without any additional contribution to sales.
With repayment cycles as short as 4 weeks, continuous funding is tightly aligned with your cash conversion cycle. It allows you to keep your business disruption-free with just the right amount of funding exactly when you need it.
“With Viably, our capital problem ceased to exist. It’s refreshing to have a financial partner that can be flexible in accommodating our needs.” - Roosh Reddy, Owner, Oversea Brands
How to Get Started with Continuous Funding
At Viably, our mission is to empower sellers to scale and build the global empire of their dreams. By offering a comprehensive suite of services—including working capital, payments, global banking, cards, spend management, and profit analytics—we provide a seamless all-in-one solution that saves time, ensures access to continuous capital, and simplifies day-to-day operations.
Getting started with Viably Continuous Capital is fast and easy.
At Viably, we specialize in providing Amazon sellers with the working capital they need to thrive. Here’s what sets us apart:
- Fast Approvals: With real-time approvals, no collateral or personal guarantees, and only a soft credit check, you can secure the funding you need without the hassle.
- Flexible Terms: Get access to funding to align with your cash conversion cycles, as often as every four weeks.
- People that Get Your Business: Our team understands the unique challenges of Amazon wholesalers and provides tailored solutions to fit your business.
“The rates are great for funding, but more importantly it’s the willingness to work together that I appreciate the most about Viably.” - Michael Bryan, Owner, Faithful Supply
Is Continuous Working Capital Right for You?
In the fast-paced world of Amazon wholesale, staying competitive means having the resources to act quickly and seize opportunities. Continuous funding ensures you have the capital you need—when you need it—to keep growing your sales and your profits.
If you’re an Amazon wholesaler looking to scale your business, continuous working capital funding could be the solution you’ve been searching for.
Ask yourself these questions:
- Are cash flow gaps holding you back from restocking inventory, adding more products, or growing your business faster?
- Do you want to unlock supplier discounts and MDFs to keep more of your money and boost profitability?
- Are you ready to make a commitment to invest in your business consistently without worrying about disbursement delays?
If the answer is yes, continuous capital funding can help you take your wholesale business to the next level.
Ready to learn more? Visit Viably to explore how continuous funding can help you scale your Amazon wholesale business.
