Consumers today are used to getting everything we want at the touch of a button. It’s now second nature to visit a website or open a mobile app, browse for what we need, and make a purchase in mere minutes—sometimes seconds. And increasingly we’re doing this from the palms of our hands.
Finding and purchasing products has become so easy for consumers, but there are many things ecommerce stores go through behind the scenes simply to get a product live on their site.
- Design the product
- Establish a set of partners to support your operations
- Get a sample of the product from a factory
- Receive the product sample, make note of any issues, and get another sample if too many issues arise with the first sample
- Forecast how much of the product you expect to sell
- Place your order based on that forecast and pay the factory
- Wait for the product to arrive so you can sell it, which could take months due to varying production times
The process of getting products onto an ecommerce site for sale is a common challenge for many entrepreneurs. And it can be a lengthy, and often costly, process.
If you run a small business, you most likely have to fund this process while owning the inventory you already have on your site. Costs can add up quickly, cripple your entire business, and force you to make tradeoffs with your growth and cut back in other areas.
While consumers may not think much about these issues, they’re top-of-mind for small business owners. When I ask ecommerce entrepreneurs about the biggest challenges they face, managing inventory and the costs associated with doing so come up time and time again.
More often than not, business owners have to pay for products up-front when they go into production and then wait until the products arrive until you can monetize them. In the meantime, you need to rely on selling your current inventory to keep the rest of the business afloat and hope it doesn’t sell out before your new products arrive. That would then cut off your store’s incoming cash flow.
Funding your inventory is a common challenge for small businesses, and that’s why we recently teamed up with Brex.
Brex offers a credit card specifically designed for ecommerce brands. With it, cardholders get net 60 payment terms with no interest.
Having 60 days to pay your balance can help business owners monetize a new product before you need to pay for it. Say you own a t-shirt company and it takes 30 days to produce a new shirt and get it onto your site to sell. With a traditional credit card, you’d need to pay for your purchase before your inventory arrived (net 30), which could potentially put your store in a difficult financial situation. But as a Brex cardholder, you’d have an additional 30 days before your payment would be due. You could begin selling your new shirts before you’d need to pay your credit card bill.
Along with net 60 payment terms and no interest, Brex cardholders get higher than average credit limits based on your store’s performance (ranging between 50-100 percent of your monthly online sales). Larger credit limits can help you more easily fund big purchases, like 5,000 units of inventory, for example.
Since Brex’s credit card was built exclusively for ecommerce brands, you get tools along with it that are specifically designed to help you like built-in expense management software, which enables you to better forecast when certain expenses will hit.
Klaviyo customers who sign up for a Brex card get your card fees waived for life (typically $5 per month per user for more than five users) plus 150,000 bonus points (valued at $1,500) after you spend $1,000 on your card.
Here’s how you can redeem your points:
- Use them to pay toward your outstanding balance
- Book business travel in Brex’s dashboard
- Transfer your points to your personal airline mileage program (within Brex’s six transfer alliance partners)
With Klaviyo’s new partnership with Brex, small business owners now have another way to grow your business.
Ready to fund your business growth more easily? Learn more about a Brex credit card.
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