Funding Marketing Efforts to Supercharge Ecommerce Growth
Marketing is an expensive but necessary expense for ecommerce retailers to get ahead of competitors
See how Rangewell brokered a finance deal for a client to supercharge their marketing.
Digital marketing helps ecommerce businesses find new customers or re-engage old ones. With incredible, data-driven tools at your fingertips, it’s easier than ever for ecommerce business owners to get involved with innovative marketing initiatives. But this growth comes at a cost: the more widespread marketing becomes, the more costly it is for a retailer to stand out against its competition. Whether you’re spending on Amazon Ads Google Shopping, PPC or social media advertising, it’s likely your competitors are trying to outperform you through increased spending or investment in third-party support.
While there are ways to help get ahead, you need the financial base from which to invest in competitive digital marketing platforms or tools to ever stand a chance. Even marketing areas that don’t require a ‘direct’ spend in advertising costs such as SEO are increasingly costly and competitive.
Data shows that ecommerce brands spend between 10-24% of their budget on SEO and 29-57% of their budget on PPC. Combined, that’s 39-81% of their total budget and doesn’t account for social media or more traditional marketing such as print advertising.
With all of this in mind, it’s little surprise that many ecommerce retailers struggle to find success in their marketing efforts until they have significant capital ready to fuel their efforts. One of Rangewell’s ecommerce partners was recently approached by an ecommerce business owner about finance options to spread their marketing costs over 6 months rather than having to pay the total cost upfront. The client and their partner approached Rangewell having identified huge opportunities for growth, provided the retailer could invest in Amazon ads and general PPC.
Unfortunately, the client did not have the cash flow needed to fund their marketing as all of their capital was invested in the stock purchase/sales cycle.
Why we were able to help
The marketing expert in question directed the client to our team, as we are recognised as being the #1 ecommerce finance expert in Europe. Knowing that the client could generate superior revenue with the right paid marketing campaign in place meant we could approach lenders with a clear value proposition.
We worked with the client and marketing expert to create forecasts based on advertising costs and return. This was then presented to specialist lenders who are already skilled in the ecommerce finance market and know how to leverage the best investments from customers. After review, lenders were able to see that the business represented a strong opportunity and secure investment. This resulted in three separate offers to our client.
We helped the client understand each of these offers in detail and ascertain the right package for them. This includes assessing the overall rates of loan offered, as well as the repayment terms. Many ecommerce businesses may automatically assume the smallest repayment is best - but it depends on your cash flow structure and the total length of the loan.
After working with our team, the client chose the largest loan amount so they could get more aggressively involved in their paid marketing efforts. This approach paid off and eight months later, the client was nominated for the Queen’s Award for Export.
About ecommerce finance for marketing
Marketing is a costly activity, but one that can be justified quickly through digital metrics and forecasts. Thanks to tools such as Google Analytics and Google Shopping, ecommerce businesses can measure the results of paid marketing efforts and build strategies based on genuine data.
For lenders, this is a promising opportunity - giving them a means of assessing their investment even before you begin a campaign. In this case study example, the third-party marketing expert working for our client was able to create a sales forecast based on Amazon data to justify costs, which was then given to lenders.
However, Rangewell’s broker team was critical in this process as it was us who had to select the specialist ecommerce lenders and approach them about the opportunity. We worked with the client to outline their business requirements and expected loan requirements - then helped them take their projections to the next level before submitting them to the lender.
After attracting three different offers with varying terms, the client was able to choose their most favourable option - which meant they weren’t forced into a single choice and could decide based on their business rather than necessity. At Rangewell, we can help you find the right packages from lenders to finance your marketing efforts and stand out in a competitive landscape.
Make the most of your marketing efforts through independent ecommerce finance, brokered by Rangewell. We’re specialists in the field and ready to help you today. Get in touch now for a no-obligation consultation.