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It’s estimated that there are over 2.5 million e-commerce businesses in the United States, with new online stores launching every day. But while there are more e-commerce SMBs than ever, this doesn’t mean that all of them are becoming a major success.
This is where Yaron Shapira, co-founder and CEO of 8fig, aims to make a difference. By focusing on helping e-commerce SMBs better manage their cash flow needs, 8fig is leveling the playing field for entrepreneurs looking to accelerate their growth.
Focus On Cash Flow
In Shapira’s observations of the industry, two challenges consistently stood out among e-commerce SMBs: successfully managing cash flow and attaining the necessary funds to do it.
As he explains, “Lack of working capital combined with poor foresight and forward planning lead to inadequate inventory management. Stockouts are all too common, and can decisively damage even the most successful of e-commerce SMBs. Ordering excessive inventory, on the other hand, can tie up valuable working capital, leading to cash flow constraints. Striking a balance is essential, but many e-commerce entrepreneurs don’t have the resources or know-how to accomplish this.”
Without adequate cash flow provisions, even a previously successful e-commerce SMB can quickly find itself in a precarious situation. In fact, some estimates claim that nearly 90% of e-commerce brands fail within their first four months of operation.
On top of poor cash flow management, many e-commerce SMBs struggle to gain necessary funding to keep their business running in the first place. Even when they get enough funding to initially stock their store, by the time they need to order additional inventory, the funding support is no longer there — even if their business has proven a success thus far.
Leveraging the Power of AI
With these concerns in mind, Shapira and his team have focused on developing 8fig into an invaluable resource for e-commerce SMBs, leveraging AI to help entrepreneurs make smarter financial decisions for funding and cash flow management.
“We are leveraging AI technology to develop an AI CFO as well as a virtual C-suite platform, consisting of a COO and AI CMO,” he explains. “These advanced tools will give e-commerce SMBs the benefits of financial management, operations assistance, and marketing tools and guidance that will benefit e-commerce SMBs on a deeper level. For example, we see the potential of AI to assist e-commerce business owners with even the most complex cash flow management and optimization. This is revolutionary for entrepreneurs who don’t have an executive team to ensure good decision making.”
By offering tools and resources to help entrepreneurs manage growth planning, as well as growth capital and funding for supply chain costs, 8fig aims to generate radical growth for its users. AI can help business owners make smarter decisions, even when operating completely on their own.
“Most small e-commerce businesses are run by solo-entrepreneurs or small teams, so they lack the expertise of an executive team,” Shapira notes. “They therefore face challenges in making informed decisions regarding cash flow, while also struggling with limited working capital. To address these pain points, we have developed a comprehensive platform that serves as an AI CFO. Our data-driven technology empowers small sellers to make better business decisions and plan for long-term success, while also providing them with the funding they need to optimize their cash flow.”
Building a Brighter Future for E-Commerce SMBs
While 8fig’s offerings have been truly transformative for many e-commerce SMBs, Shapira sees the company’s current funding solutions and use of AI as just the beginning.
“In the longer term, we plan to advance our AI CFO technology to the point at which it provides online sellers with an all-in-one solution for all of their financial needs,” he says.
“This includes funding of course, but also higher level financial management and planning. Eventually, we plan to introduce an entire virtual C-suite complete with an AI COO and CMO, equipping small e-commerce businesses with the tools and resources necessary for real, sustainable growth and success.”
The objective is to ensure that e-commerce SMBs don’t need the massive teams and overhead that often come with scaling. With data-driven insights supported by AI tools, entrepreneurs will have everything they need to make more informed decisions regarding key actions such as inventory planning.
Combined with 8fig’s cash flow-optimized funding model, such a setup could help more e-commerce SMBs thrive, delivering quality products to their target audience without being plagued by stockouts or funding concerns.
Generating Lasting Success
Many e-commerce entrepreneurs are passionate about what they do — but they may not have the financial resources or know-how to turn their storefront into a lasting success. With platforms like 8fig, SMBs are better equipped to turn a budding business into a thriving venture.
As Shapira says, “We aim to give the small entrepreneurs the opportunity to compete in fair terms with the big brands. […] Fortunately for small online businesses, there is no expensive rent online and no prime location to compete for. If you have the motivation and the right product, you can succeed.”
