Fintech Storfund has announced a partnership with TikTok Shop that will introduce the first fully embedded cash flow solution in a major US marketplace. This change is expected to benefit sellers on the social media app.
Referred to as Daily Advance, the product should reportedly see Storfund advance funds to sellers as soon as they ship their products / goods.
This addresses a disparity in the world of digital commerce where clients are able to buy online in minutes, but marketplaces tend to postpone payouts to sellers for as long as 60 days.
Money is held back by all marketplaces to ensure that sellers have funds available for refunds but this can affect their ability to “restock and scale up.”
The partnership sees TikTok Shop embed the solution within its platform, the first “major” marketplace in the US to do so.
By giving its sellers a way to access fastre payouts, Daily Advance will aim to assist TikTok Shop to further enhance the digital commerce sector, as the social media app supports its sellers and its growth trajectory.
George Brintalos, Storfund’s CEO, said that as we’ve seen on the almost 50 marketplaces where Storfund is available globally, improved cash flow is win-win for sellers and marketplaces.
George added that they expect Daily Advance to be instrumental in driving seller growth, and therefore TikTok Shop’s growth.
George also noted that they want Daily Advance to be the norm on every marketplace worldwide, so their collab with TikTok Shop is considered to be a key milestone for them and one that they trust will prove “beneficial to U.S. sellers too.”
Sellers using Daily Advance have benefitted from faster access to funding. Jordan Ellingson’s company Valley Chase in Minnesota sells on TikTok Shop.
He explains that it can take as little as a week to go from ordering to selling, particularly if he hosts a livestream – but he can typically wait another week to get paid.
Livestream shopping is proving a success for TikTok Shop in the U.S., with SMEs able to use content to “connect with buyers, rather than rely on searches; in June this year TikTok Shop hosted its first $1 million livestream for one of its sellers.”
Storfund is the provider of Daily Advance that claims to have “cracked” the complexity of ecommerce cash flow on a global scale, first “developing the tech to integrate with multiple marketplaces, then creating an embedded solution which can be deployed by marketplaces and even platforms such as payment providers.”
SMEs are considered to be the backbone of the US economy and online marketplaces offer business owners a significant opportunity to reach new, younger and even global consumers.
If ecommerce has improved drastically how people shop, Storfund’s Daily Advance promises to enhance how sellers can grow.
Established in London in 2018, Storfund says it offers as much as $7 billion per year to sellers on Amazon, TikTok Shop, Back Market, Kaufland and many others.
Their goal is to make ecommerce cash *flow*.
They started Storfund with a simple idea: marketplace sellers should “get paid immediately for their sales, just like traditional retailers.”
Marketplaces are reportedly responsible for more than 50% of purchases in an industry worth $5 trillion, but sellers wait anywhere between 7 and 45 business days before they actually get paid.
Storfund claims that it pays sellers “on the day that they ship.”