Alex Shvarts, CEO of FundKite, was recently published on Retail Minded. His byline, titled “Small Business and Big Box? They’re More Similar Than You Think,” discusses how small business is actually the backbone of big box retailers, and how to balance cash flow while running a business in the retail industry.
It starts as follows…
“Big box companies are the death of small business!” So the ethical consumers cry.
“While yes, many small businesses have not been able to compete with the lower prices a major company with economies of scale can provide, an overwhelming amount of small businesses have realized if you can’t beat them, you should join them.
“Small businesses partner with companies like Amazon, Walmart, Target and others to increase their distribution and form a partnership of manufacturer to retailer or small retailer to bigger retailer. When consumers are walking out of the store with an armful of Walmart bags or checking out their online shopping cart on Amazon, they may still be supporting small businesses who sell under the umbrella of the giant retailer.
“Small Business Is The Backbone Of Major Retailers
“If a major retailer tried to manufacture, market, sell and distribute every product in their thousands of stores, they would have immense fulfillment issues.
“One of the biggest nightmares for retailers is having profitability interrupted by out of stock items. Then add the challenges of managing products across multiple channels, aligning inventory and delivery, coordinating with suppliers and manufacturers, all while connecting in-store purchases and pickups with online orders. Online shopping has increased the need for third party vendors because big names have such massive scale operations that they simply can’t fulfill all of their online orders themselves or offer the endless product lines needed to satisfy every customer.”
The article then goes into the many facets of a supply chain to provide seamless service to both inspire and online customers as well as year round cash flow tips in an industry full of seasonal rushes and customer behavior analysis.
You can read the full article on Retail Minded by clicking this link.
To learn more about cash flow for small business and big box, read this article.