eCommerce finance FAQs

eCommerce finance FAQs

We interviewed Grant Fraser, Global Head of eCommerce Financing, to find out about the lending options Woodsford TradeBridge can offer eCommerce marketplaces and their merchants.

Watch the video or read the full interview below.

 

What kind of eCommerce businesses do you support?

We work with large, fast-growing marketplaces globally, including mature marketplaces that are online retail leaders in their jurisdictions, as well as younger, hyper-growth marketplaces that are catching up fast.

Their product offering can differ also.

We have marketplaces focused on the latest tech in North America, high-end fashion in the UK, as well as fantastic competitors to Amazon in Central and Eastern Europe.

All of these are reliant on strong relationships with thousands of merchants to help their marketplace grow.

 

How has COVID-19 affected eCommerce marketplaces?

From a consumer perspective, the pandemic has accelerated the move to online shopping, as well as triggering a shift in the type and amount of products that are in demand. This has benefited many eCommerce marketplaces, and the trend is set to continue through the recovery period.

In addition, independent retailers have had to look for new routes to market – with eCommerce marketplaces providing a ready-made platform.

What this does, however, is to create a situation where merchants may experiment with multiple marketplaces. This is a problem for the marketplace, who typically want exclusivity and a certainty that merchants can keep up with demand. Marketplaces therefore need to explore ways to make their offer more “sticky” to secure the long-term supplier relationships that will allow them to grow.

Merchants with a strong supply chain have been best placed to thrive, as manufacturing businesses in different parts of the world shut down and then come back online again.

 

How can a marketplace benefit from a Woodsford TradeBridge facility?

Marketplaces need to find ways to secure supplier relationships as they grow. To ensure that merchants are loyal, and that they have the capability and agility to scale as needed, often at speed.

They need to find ways to incentivise their merchants to do two key things:

Number one – to expand their product offering and

Number two – to utilise the marketplace’s fulfilment service.

Both initiatives require merchants to invest in their business and commit capital to innovate and finance stock in the marketplaces warehouse.

By inserting TradeBridge’s capital into the process, this has a direct impact on the merchant’s ability to secure stock, in-turn driving variety of product and improved delivery times to customers. It ensures stickiness between marketplace and merchant, further solidifying that important relationship.

 

How does a Woodsford TradeBridge facility benefit the merchants?

Merchants come in all shapes and sizes and experience working capital needs for different reasons:

Stock is always a hot topic, and if your supplier is offering you a good deal then you want to have the cash available to take advantage of it

–   Growing merchants need capital to invest in their business, launch new products or buy a new piece of machinery to ramp up production

Many merchants run out of cash during peak seasonal periods, and miss out on lost sales

TradeBridge’s tailored merchant loans solves these bottlenecks and provides the merchants with much needed cash to continue on their growth journey, allowing them to focus on what they do best.

 

What makes Woodsford TradeBridge finance solution different?

Our eCommerce experience, our deep pockets and our global outlook.

Marketplaces want to partner with FinTech businesses that can offer meaningful lending facilities to their merchants, globally not just locally. TradeBridge has access to its own deep pool of committed capital so we can do that. If a merchant in Europe wants $50k, no problem, if a larger merchant in China wants $2m, we can do that too.

Equally, merchants want to know what size of loan they can access fast and without a long application process, and our lending algorithm makes it very quick, and easy to plug in merchant sales history and get a decision right away.

We’ve been offering merchant loan facilities to our marketplace partners for 5 years now, and there’s not many competitors that can say they have our experience.

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