Unlock BFCM Growth: 5 Ways Businesses Use Shopify Capital
Black Friday and Cyber Monday (BFCM) have become synonymous with massive sales and peak shopping activity, providing businesses an unrivaled opportunity to capture market share and generate significant revenue. However, achieving success during this period requires more than offering discounts—it demands strategic investments in inventory, marketing, operations, and customer experience.
Shopify Capital, a financial service designed specifically for businesses using Shopify, offers an accessible way to secure funding and optimize BFCM strategies. This guide will explore five actionable ways businesses can use Shopify Capital to drive growth during the BFCM season.
1. Inventory or Product Expansion: Scale Product Offerings
A well-stocked inventory is critical during BFCM, as demand surges dramatically. Insufficient stock or a lack of product variety can result in missed opportunities and dissatisfied customers. Shopify Capital enables businesses to invest strategically in their inventory, ensuring they can meet customer demand.
Ways to Use Shopify Capital for Inventory Growth:
- Launch New Product Lines: Test seasonal or trending items that align with BFCM shopping habits, such as holiday-themed products or exclusive bundles.
- Expand Existing Categories: Increase the variety within your existing product lines to appeal to a broader audience.
- Secure Bulk Discounts: Use the funding to negotiate lower prices with suppliers by purchasing in larger quantities, boosting your profit margins.
Example:
The Buffalo Wool Co., a brand specializing in premium bison products, used Shopify Capital to bridge the gap between production expenses and peak sales seasons. This funding allowed them to stock up on their best-selling items, ensuring they met the high demand during the holidays without compromising on quality or availability.
2. Marketing: Amplify Reach and Engagemen
With competition intensifying during BFCM, standing out requires impactful marketing strategies. Businesses need to invest in targeted campaigns to capture attention and drive traffic to their stores. Shopify Capital can be a game-changer by funding marketing initiatives that amplify your reach.
How Shopify Capital Fuels Marketing Success:
- Paid Advertising: Invest in Google Ads, Facebook, and Instagram campaigns to reach potential customers during this high-intent period.
- Email Marketing Campaigns: Send personalized email promotions to your subscriber list, highlighting exclusive BFCM deals and product launches.
- Influencer Collaborations: Partner with influencers to leverage their audience and build credibility around your brand.
- Retargeting Ads: Re-engage past customers or website visitors with targeted offers, increasing the likelihood of conversions.
Example:
Porter Road, a sustainable meat company, utilized Shopify Capital to double down on marketing during BFCM. Their investment in high-performing digital campaigns resulted in an impressive boost in sales, as they reached new audiences and deepened connections with existing customers.
3. Cash Flow: Ensure Financial Stability and Cover Short-Term Financing Needs
Maintaining healthy cash flow is one of the biggest challenges for businesses during BFCM. The need for higher inventory levels, increased staffing, and expedited shipping can strain financial resources. Shopify Capital offers a flexible solution by providing funds that can be used to manage these short-term needs effectively.
Key Cash Flow Applications:
- Managing Unexpected Costs: Address sudden expenses like higher-than-expected shipping costs or supplier delays without disrupting operations.
- Upgrading Technology: Invest in e-commerce platforms, payment systems, or website improvements to handle increased traffic and transactions smoothly.
- Preparing for Post-BFCM Returns: Maintain liquidity to process refunds or exchanges after the sales rush.
Example:
Jessica Wise, the founder of Hell Babes, initially relied on credit cards to manage cash flow. After switching to Shopify Capital, she found the repayment model—based on a percentage of daily sales—much more manageable. This approach gave her the flexibility to focus on growth while ensuring her business had sufficient liquidity during the high-demand BFCM season.
4. Retail: Enhance the Customer Experience
Delivering an exceptional customer experience during BFCM is essential for converting first-time buyers into loyal customers. Whether operating a physical store, an online shop, or both, businesses can use Shopify Capital to create an environment that delights shoppers and encourages repeat business.
How to Use Shopify Capital for Retail Enhancements:
- Optimize Point-of-Sale Systems: Upgrade POS systems to ensure fast and seamless checkout processes.
- Improve Store Layout: Redesign physical or digital store layouts to facilitate easy navigation and product discovery.
- Train Staff: Equip employees with the knowledge and skills needed to handle increased traffic and provide top-notch customer service.
- Offer Same-Day Pickup: Invest in systems or staff to manage same-day in-store or curbside pickup options.
Example:
A boutique clothing store used Shopify Capital to enhance its in-store ambiance by updating decor, improving lighting, and offering refreshments during BFCM events. These small changes significantly improved the customer experience, leading to positive reviews and increased foot traffic.
5. Operating Expenses: Handle Payroll and Rent
During BFCM, operational costs tend to skyrocket. Businesses often require additional staff, extended hours, and larger physical or digital infrastructures to accommodate the surge in demand. Shopify Capital can help cover these increased expenses, ensuring smooth operations during the busiest shopping season of the year.
Ways to Manage Operating Expenses with Shopify Capital:
- Payroll Management: Cover wages for existing employees and hire seasonal staff to handle the influx of customers.
- Rent Payments: Ensure timely payments for storefronts, warehouses, or pop-up shops.
- Utility Bills: Offset the cost of higher electricity and internet usage caused by extended working hours.
- Shipping Costs: Address the rise in shipping expenses for online orders and expedited delivery options.
6. Power Up Your BFCM Strategies with Shopify Capital
Shopify Capital serves as a powerful resource for businesses looking to unlock growth during BFCM. Its flexible and accessible funding allows businesses to make strategic investments that maximize their potential during this critical period. From inventory and marketing to cash flow and customer experience, Shopify Capital empowers businesses to thrive.
Key Takeaways for Leveraging Shopify Capital:
- Expand Inventory: Ensure your shelves are stocked to meet the demands of eager BFCM shoppers.
- Invest in Marketing: Amplify your reach and connect with your target audience through tailored campaigns.
- Maintain Cash Flow: Stay financially stable to manage unexpected expenses and seize growth opportunities.
- Enhance Customer Experience: Deliver a seamless and enjoyable shopping experience for both online and in-store customers.
- Cover Operating Expenses: Manage payroll, rent, and other essential costs to keep your business running smoothly.
By using Shopify Capital wisely, businesses can position themselves for significant growth not just during BFCM but for the year ahead. Whether you’re looking to scale your product offerings, supercharge your marketing, or improve your operations, Shopify Capital offers the support you need to make it happen.
