5 Benefits of Accessing More Working Capital For Your Amazon Brand

Jérôme de Guigné
5 min readMay 14, 2021

No matter what kind of eCommerce business you run, consistent cash flow is critical to success. Without it, you can experience risks like running out of stock during key holidays, missing supplier payments or not being able to pay employee salaries. Not to mention losing out on opportunities to expand your business.

Many Amazon brands would benefit significantly from some extra liquid cash to help them to run their business more smoothly.

Here are five top benefits to having more working capital for your business from our friends at Payoneer.

1. Improve your inventory

When you’re running an online store, the more products you stock, the more you can sell. No one wants to run out of the hottest items or miss out on new trends. When you have extra cash at your disposal, you can expand your inventory to stay ahead of the competition.

For example, you might sell plain, luxury hand towels. You see a new trend appearing for embroidered hand towels, but all your capital is tied up. Or you want to add a line of bath towels or offer personalised towels as well.

You can‘t afford to buy any more inventory until you’ve sold some of your stock, but by the time you do that, the moment will have passed, and you won’t be able to make a good profit on the new trend. Your competition is harsh, and they won’t sit back when your inventory drops. If you can’t keep on top of new trends and maintain stock levels, you’ll quickly lose out to your rivals. With more working capital, you can grow your inventory and your profits.

It’s also important to remember that Amazon keeps an eye on your stock levels. If it seems that you’re running out of stock, it can downgrade your IPI rating and start charging you for warehouse space, so it’s worth it to make sure you keep up stock levels.

2. Seize new opportunities