Revenue is exciting—but cash is what keeps your business alive. For eCommerce brands selling on marketplaces like Amazon, Walmart, and others, there’s a painful gap between making a sale and getting paid. If you don’t forecast cash flow correctly, that gap can turn into a full-blown cash crunch.
Focal Software helps eCommerce businesses forecast cash flow by connecting accounts payable (AP), accounts receivable (AR), and marketplace payouts in one operations system.
The Marketplace Cash Flow Problem
Marketplaces often:
Hold funds for 1–3 weeks
Deduct fees before payouts
Delay payments further if there are chargebacks or reserves
Meanwhile, your expenses don’t wait. You still need to pay:
Vendors and suppliers (accounts payable)
3PLs and fulfillment centers
Software subscriptions and advertising
Payroll and operating expenses
The result? You can be profitable on paper but still run out of cash.
Why AP and AR Must Be Connected to Forecasting
To forecast cash flow accurately, you need a clear picture of:
1. Accounts Receivable (AR)
How much marketplaces and customers owe you
When settlements and payouts are scheduled
How returns and disputes might reduce those payouts
2. Accounts Payable (AP)
Vendor due dates and payment terms
Large upcoming inventory purchases
Recurring payables (rent, software, logistics)
An Operations Suite like Focal Software brings AR and AP into one place, so you see cash in and cash out on the same timeline.
How an Operations System Improves Cash Flow Forecasting
With the right system, you can:
Project Marketplace Payouts
Pull order data, estimated fees, and payout schedules from each marketplace. This lets you forecast when cash will actually hit your bank account—not just when sales are booked.
Model Vendor Payments
Load vendor terms (Net 15, Net 30, etc.) and upcoming bills to see when large payments will leave your account. You can then:
Prioritize payments based on due dates and importance
Negotiate extended terms when needed
Plan inventory purchases around expected cash inflows
Run “What-If” Scenarios
Ask questions like:
What happens if Amazon holds funds for an extra week?
Can we afford a large inventory buy before Q4?
What if returns spike next month?
When AP, AR, and marketplace data are all in one system, these scenarios become simple reports instead of complex spreadsheets.
Why Getting This Right Matters in a Cash Crunch
In a cash crunch, visibility is power. Accurate cash flow forecasting means you can:
Avoid surprise shortfalls
Time marketing and inventory investments strategically
Communicate confidently with lenders and partners
Focal Software is built to help eCommerce businesses forecast cash flow based on real AP, AR, and marketplace data—so you can grow without losing control of your cash.
