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Pssst... Did you know Amazon FBA reimbursements combined with accelerated payouts can help you avoid cash flow issues so you can effectively scale your Amazon FBA business? Surprised? Keep reading! We have a few tricks up our sleeve to help you get the most bang for your FBA business buck.
Cash flow is one of the most common and most challenging factors of running a successful Amazon FBA business. Not having enough cash available can mean an FBA business is unable to grow adequately. Unfortunately, without growth, there is usually little chance of profit and an even slimmer chance of survival.
This article will detail how you can maximize the cash flow in your Amazon FBA business using both FBA reimbursements and accelerated payouts.
So, what is Cash Flow?
Whether you are new to selling on Amazon or have a few years under your belt, it’s a good idea to understand where your money is flowing in and out of your business. Cash flow is genuinely one of the most essential factors to growth.
For Amazon sellers, cash flow is money that moves in and out of an Amazon FBA Business. Examples of cash flow can include money used to pay suppliers, freight forwarders, or any incoming payments you receive from Amazon for your Amazon sales.
Often FBA is chosen as a scalable business model due to the relatively low startup costs associated with selling on the Amazon platform. But, as global ecommerce evolves, starting on Amazon FBA isn’t as cheap as it once was, say, eight years ago.
To scale an FBA business successfully in today’s climate, most sellers reinvest their profits back into their FBA business. Why? To save money and to grow at a consistent and healthy rate.
Amazon sellers typically do this until the business expands to the point that it makes sense to pay themselves an annual salary. Failure to reinvest money back into an Amazon FBA business can impede the growth the business can potentially see.
What are FBA Reimbursements and Accelerated Payouts?
You may be thinking these two terms are an unlikely pair put together. Let us explain how both prove to benefit the cash flow in your FBA business equally.
Amazon FBA Reimbursements
Over the lifecycle of your inventory on Amazon, your inventory can be lost, damaged, destroyed, disposed of or overcharged in FBA fees. These errors are known as discrepancies. To recover these funds, you are required to file an Amazon claim and recover the Amazon FBA reimbursements owed to you.
These claims are a normal part of doing business on the Amazon platform. Unfortunately, many sellers do not know that FBA reimbursements exist, or some sellers may be unsure how to perform proper Amazon FBA reimbursement claims.
Lacking awareness about FBA reimbursements can mean that Amazon sellers are leaving their own money on the table. Any money that a seller is inadvertently leaving behind can therefore mean an inability to scale.
Think about leaving just $1000 behind unknowingly in your business. That $1000 can be used to reorder goods, develop new products, scale to new international Amazon marketplaces, and much, much more.
If you don't know you are owed that money, there is no way to use that money to help you grow the business. FBA reimbursements are like money coming back from the dead essentially.
Accelerated Payouts
When you choose to sell on Amazon, you agree to the payout terms Amazon sets forth.
Amazon has its own payout cycle, which varies for each seller depending on when you sign up to the platform.
An accelerated payout is offered exclusively from a company like Payabailty to help Amazon sellers avoid the lengthy payout structure Amazon provides. Some sellers can wait 14 to 19 days to receive payment from Amazon for goods they have sold on the platform. Accelerated payouts by Payability mean sellers get their payouts advanced every day, including on weekends and holidays. Accelerated payouts from Payability don’t require credit checks as they make evaluations based on your sales history and Amazon account health.
Having access to daily payouts means you can reinvest that money as needed to grow your FBA business.
A great example of how accelerated payouts can benefit you is by helping you to increase your order size without having to delay payment or shipment to match your Amazon pay dates. Keep your business moving forward and your suppliers happy at the same time.
Summary
Imagine combining these two superpower cash flow solutions to help you scale your Amazon FBA Business? Don’t stress! It’s extremely common and very easy to do both at the same time.
Both GETIDA and Payability are a part of the Amazon Service Provider Network. As an Amazon seller, your Amazon account is everything to the life of your business. Being a part of the ASPN means you have added assurance that both solutions have been thoroughly vetted and audited by Amazon to perform the tasks that each performs on your behalf.
GETIDA focuses on the maximum reimbursement you are owed, while Payabailty affords sellers the ability to have access to daily payouts and a variety of other cash flow benefits to help you grow your Amazon FBA business.
Grow your Amazon business today and make your cash flow crunch a part of your past!
Sign up for GETIDA and get $400 free in FBA Reimbursements.