Effective inventory planning and management during Black Friday and Cyber Monday is essential to ensure that you have enough stock to meet customer demand. Planning inventory has always been a difficult aspect of operating a CPG business, and this is even more true for e-commerce businesses.

It is estimated that Black Friday accounts for 13% of all sales for the year. In 2021, sales reached $40 billion on Black Friday and Cyber Monday. 

Predicting product demand and determining the optimal timing for placing inventory orders are tasks that require considerable effort. Additionally, each year presents new challenges. For example, the impact of inflationary pressure on Black Friday shoppers and supply chain delays.

Financing the necessary inventory can be a challenge for many businesses. This is where inventory funding comes into play. By leveraging inventory funding, retailers can secure the necessary capital to stock up on popular products and take full advantage of the Black Friday/Cyber Monday shopping frenzy.

What is inventory funding?

Inventory funding leverages the resources of a financing partner to pay for inventory production. Funding can often be customized to address your business’s exact manufacturing, shipping, and sales timelines. Some providers require no payment on goods until the inventory sells. This works well with natural cash flow cycles.

The products produced typically act as the collateral for the financing, meaning that if the business reports an inability to repay the funding, the inventory can be sold to cover the debt.

Inventory funding is especially valuable to any business experiencing a significant delay between paying for inventory and receiving payment from future sales. It is also helpful for businesses that want to receive volume-based discounts by placing larger orders to support all of their sales channels. This works best when done on a quarterly or other regular basis and can help to prevent the stock-out issues that stifle growth.

How Can Inventory Funding Prepare your Brand for Black Friday/Cyber Monday Success?

Ensure optimal inventory levels

Inventory funding allows CPG businesses to maintain optimal stock levels during peak seasons like Black Friday and Cyber Monday. By having enough inventory on hand, retailers can meet customer demands promptly and avoid stockouts that could result in lost sales.

Expand product offerings

Black Friday shoppers are often on the lookout for exclusive deals and a wide variety of products. With inventory funding, CPG businesses can diversify their product offerings, catering to a broader range of customer preferences and maximizing their chances of attracting more buyers.

Secure competitive pricing

Manufacturers and suppliers often offer discounts and special pricing for bulk orders. With inventory funding, you can take advantage of these opportunities and secure more competitive pricing, enhancing your profit margins during the Black Friday/Cyber Monday sales.

Strengthen marketing and advertising efforts

Inventory funding can enable CPG businesses to explore diverse marketing channels and reach a wider audience during peak seasons like Black Friday and Cyber Monday. For example, you can invest in online advertising, social media campaigns, influencer collaborations, or traditional advertising channels like television, radio, or print media. With sufficient inventory funding, you can implement and sustain multi-channel marketing efforts, maximizing your brand exposure and increasing the chances of attracting new customers.

Flexibility and scalability

Inventory funding provides the flexibility to adjust inventory levels based on real-time sales data and market trends. This adaptability enables businesses to respond promptly to changes in demand and optimize their inventory investment during Black Friday/Cyber Monday and beyond.

To make the most of Black Friday and Cyber Monday, it is crucial to partner with an inventory funding provider or explore financing options tailored specifically to inventory needs. By securing the necessary capital, CPG businesses can seize the opportunities presented by Black Friday/Cyber Monday and position themselves for success in the competitive retail landscape.

Kickfurther Inventory Funding

Kickfurther funds up to 100% of your inventory costs on flexible payment terms that you customize and control. With Kickfurther, you can fund your entire order(s) each time you need more inventory and put your existing capital to work growing your business without adding debt or giving up equity.

Why Kickfurther?

No immediate repayments: You don’t pay back until your new inventory order begins selling. You set your repayment schedule based on what works best for your cash flow.

Non-dilutive: Kickfurther doesn’t take equity in exchange for funding.

Not a debt: Kickfurther is not a loan, so it does not put debt on your books. Debt financing options can sometimes further constrain your working capital and access to capital, or even lower your business’s valuation if you are looking at venture capital or a sale.

Quick access: You need capital when your supplier payments are due. Kickfurther can fund your entire order(s) each time you need more inventory.

Kickfurther puts you in control of your business while delivering the costliest asset for most CPG brands. And by funding your largest expense (inventory), you can free up existing capital to grow your business wherever you need it – product development, advertising, adding headcount, etc. Get funded today

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Jeff is OpenSponsorship's Director of Marketing. He typically writes about sports sponsorship, marketing, and tips & tricks for brands.