Sellers often pay suppliers upfront, wait for marketplace settlements, absorb returns and pay for ads. Growing sales can strain cash.
Where cash gets stuck
- Stock bought in advance.
- Settlement cycles after delivery.
- Return deductions.
- Ad spend before sales come in.
- Stock at fulfilment centres.
Plan your cash cycle
- Note supplier payment terms.
- Note how long stock takes to sell.
- Note settlement timing for each marketplace.
- Calculate how many days your money is tied up.
Improve cash flow
- Negotiate credit terms with suppliers.
- Order smaller, more frequent batches; plan with our reorder point calculator.
- Clear slow stock quickly.
- Reduce returns.
- Control ad budgets.
Know your profit
Use our profit calculator so growth does not hide losses.
Financing
Some marketplaces and lenders offer seller financing; compare costs carefully.
Read clearing dead stock.
Want the full picture? This article is part of Marketplace selling: the complete guide, our in-depth guide with everything in one place.
