Essential Prep Tips for Merchants During the Summer Sales Peak Period

Just ahead of Amazon Prime day on July 16-17, Walmart kicked off a competitive, paid-membership war with its Walmart+ Week. So, what's in it for U.S. merchants?

As the retail giants prepare for a busy sales period, merchants must strategically position themselves to capitalize on events like Amazon Prime Day. Over two-thirds of U.S. small and midsized businesses (SMBs) rely on imported goods for production or as merchandise to distribute domestically. According to a recent survey, over 90 percent of businesses report that e-commerce platforms have been essential for enabling trade. Yet business leaders point out that U.S. companies' biggest barrier to cross-border growth is gaining access to capital.

Running a business can be tough at the best of times, but when you consider that just over two in three U.S. SMBs have less than four months of operating cash on hand or that a majority (53 percent) of business owners have had to tap into their personal savings to keep their operations running, the scale of the challenge becomes apparent. Unsurprisingly, nearly half of the nation’s SMBs plan to start or increase credit utilization to support operations and fuel growth.

Why Securing Financing is Crucial 

The summer sales period, highlighted by Prime Day, presents an enormous opportunity for merchants to boost their revenue. Without adequate cash flow, many U.S. enterprises risk not having enough funds to cover essential operating costs such as rent, employee payroll, and supplier payments.

That’s why businesses must start planning now. This involves securing the right financing to ensure they have the necessary inventory to meet customer demand. Having sufficient stock is crucial because running out of popular items can lead to disappointed customers, which can harm a business’s reputation.

The Strategic Importance of Flexible Funding

Major sales events are critical periods that can make or break annual revenue targets for many businesses. These events require merchants to scale operations quickly and with flexibility. Accounts payable financing has emerged as a crucial lifeline for U.S. merchants seeking flexible and rapid financing.

Traditional financing methods often don't fit the fast-paced nature of inventory-heavy sectors, such as e-commerce and retail, due to their lengthy approval processes and strict requirements. Embedded lending, on the other hand, integrates accounts payable financing options directly into business platforms, giving merchants quick access to funds exactly when they need them.

This allows businesses to respond swiftly to peak customer demand, optimize stock levels, and seize growth opportunities without the delays of conventional loans. The flexibility of accounts payable financing also allows merchants to borrow and repay according to their revenue streams, reducing the risk of financial strain. As a result, merchants can manage their cash flow efficiently, plan ahead, and strategically reinvest in their operations and innovation.

There's No Time to Waste

The accessibility of solutions like accounts payable financing is not just a convenience, it's becoming necessary for U.S. e-commerce businesses aiming to thrive and grow. This is especially true as accounts payable financing can offer businesses a timely and tailored solution to financing that traditional methods cannot match.

These flexible finance solutions are positioned to play a pivotal role in this evolution by offering a frictionless borrowing experience that aligns with the dynamic needs of modern businesses. The ability to access funds swiftly can empower businesses to invest in technology, expand their product lines, and enhance their customer service, thereby driving long-term growth and sustainability.

As the competition heats up with Amazon Prime Day and beyond, merchants that adopt these strategies will be well-positioned to thrive in the paid membership war and the lucrative summer sales period.

Kenny Tsang is managing director of PingPong, a cross-border payments platform.