Online Retailer Business Financing

Online Retailer Business Financing

The job of an online business owner never stops. While some may think you live the high life - order some products, list them online, relax and let the orders roll in - you know differently. Finding, gaining, and retaining customers in and of itself is a tremendous effort. Holding inventory is a delicate balance. And what happens when you want to give your business a boost? That takes finesse - and funds.

If you’re looking to grow your business, chances are you’ll need some financial support. Things like inventory, marketing, advertising, and hiring more employees require investment. Unfortunately, traditional financing options aren’t fit for all of the needs of an eCommerce business. Thankfully, there’s online retailer business financing.

What Is Online Retailer Business Financing?

Despite being quite prolific in this day and age, eCommerce businesses are non-traditional when it comes to funding. The ebbs and flows of sales cycles and the sheer volume of competitors in the market mean online retailers need to make sure they have a tight strategy and the finances to support it. The rising demands and fickle nature of customers keep eCommerce businesses on their toes.

Online retailer business financing options are non-traditional lending offers for non-traditional business models. Rather than mandating minimum monthly payments and attaching high interest rates, these options move with the cycles of your business.

Related: The Basics of Funding for eCommerce Businesses

How Does Online Retailer Business Financing Work?

Let’s start by saying: a variety of funding options is a good thing. Diversifying your capital stack is a healthy business practice, as different types of financing suit specific purposes. Credit cards are great for day-to-day expenses, whereas bank loans or lines of credit suit longer-term needs. Often these options take a bit of pre-planning as their application processes can be lengthy, and approvals can take some time (up to 2-3 months).

Online retailer business financing with eCommerce financing has a straightforward application and approval process with a quick turnaround. That makes it perfect for time-sensitive needs such as ordering more inventory or running a marketing campaign.

Your funding repayment is attached to your inventory rather than the calendar months. When you sell a product, a percentage goes toward repaying your debt. That means during slower sales months, you won’t have to worry about falling behind on payments or facing huge penalties.

Key Uses for eCommerce Financing

Ecommerce financing as part of your overall online retailer business financing is perfect for applying strategies that help your business grow. eCommerce businesses often use this funding to stabilize cash flow, drive marketing activities, and keep stock on hand.

Even if you’re an established brick-and-mortar business, you will find a steep curve to entering the online world. Claiming space in the online marketplace can be time-consuming and costly. No matter your success in your local surroundings, eCommerce is an entirely different world. While challenging the move or expansion online can be very rewarding. To ensure your success, you’ll need to know where to invest strategically and how to leverage the funding you have.


Inventory reigns supreme when it comes to making your place in the world of eCommerce. According to a recent survey, 41% of customers list in-stock availability and fast and reliable delivery as paramount to their online purchasing decisions.

Now more than ever, businesses and customers alike are learning the fragility of the supply chain. Restrictions in movement, reductions in staff, and general uncertainty have caused supply shortages worldwide, showing how interconnected - and interdependent - the global economy truly is.

While it’s true no one could have predicted a pandemic and its ramifications, those who were able to receive and hold stock on hand are showing up as heroes for their customers. Maintaining inventory costs money, though, and not only for the products themselves. Holding costs include warehouse space, labor, insurance, and more.

Online retailer business financing will help you with supply chain management and the availability of your products for your customers. With funding tailor-fit for eCommerce, you can order stock confidently, knowing that you will repay your loan as a percentage of sales rather than meeting monthly payment obligations.

Related: Amazon Inventory Financing-Expand Your Vision


Even if you have a unique product fit for a particular niche, you can’t depend on customers simply finding you and making a purchase. Instead, a thriving business needs a marketing strategy and the capital to execute.

Whether it’s social ads, remarketing, email newsletters, or influencer promotions, a comprehensive marketing strategy will help you reach - and retain - customers. Online retailer business financing is excellent for applying to marketing and advertising costs. When done correctly, your marketing approach will grow your business while repaying your loan.

Expand Your Offering

With a bit of extra capital, you can consider expanding your product offering. Whether that means more options for products you’re already selling, accessories for those products, or an entirely new item, expanding your offering can help you capture a broader market. With online retailer business financing, you can test new products in your market or leverage upsell opportunities to your existing catalog.

Add Headcount

As you apply more strategies to grow your business, you’ll need to be sure you’re keeping up with high levels of support. More orders mean more customer service needs, and additional people require more investment in payroll.

Capital received from online retailer business financing can be used not only to cover remuneration. You can also use these funds to implement new technologies and tools like a CRM or communication tool.

The Sky’s the Limit

It may sound like a cliche, but the sky truly is the limit for eCommerce. The market is growing by the day, and customer reliance on the online world is not likely to fade as the pandemic fades into the distance.

eCommerce merchants should invest in comprehensive marketing strategies to help them stand out in a crowded marketplace. Holding inventory will help meet the customer demand of instant gratification with increased convenience all in one package.

Thankfully, online retailer business financing from Onramp is here to help. With an easy application process and rapid turnaround, you can have money to reinvest in your business in a matter of days.