If you’ve had any experience with TikTok in the last few years, you’ve likely become familiar with the app’s e-commerce offerings. The video-sharing site has pushed its shop feature to its users in a variety of ways, through user videos, discounts, and ads.
Now, Storfund, a UK-based fintech, is partnering with TikTok Shop to introduce a fully embedded cash flow solution for sellers. It says it hopes the offering will benefit sellers with high-growth potential on the social media app.
Dubbed ‘Daily Advance’, the new product will see Storfund advance money to sellers as soon as they ship their goods. This addresses a significant disparity in e-commerce where customers can buy online in minutes, but marketplaces can delay payouts to sellers for up to 60 days. Money is legitimately held back by all marketplaces to ensure that sellers have funds available for refunds but this can disrupt their ability to restock and scale up.
TikTok Shop becomes the first major marketplace in the US to embed the proprietary solution end-to-end within its platform. By giving its fast-growing sellers a way to access quicker payouts, Daily Advance will assist TikTok Shop to further disrupt the e-commerce industry, as the social media app continues to support its sellers and its own growth trajectory.
George Brintalos, CEO at Storfund, said: “As we’ve seen on the almost 50 marketplaces where Storfund is available globally, improved cash flow is a win-win for sellers and marketplaces. We expect Daily Advance to be instrumental in driving seller growth, and therefore TikTok Shop’s growth.
“We want Daily Advance to be the norm on every marketplace worldwide, so our partnership with TikTok Shop is a huge milestone for us and one that we trust will prove hugely beneficial to U.S. sellers too.”
Supporting e-commerce businesses
Livestream shopping is proving a success for TikTok Shop in the US, with SMEs able to use content to connect with buyers, rather than rely on searches.
“Unlike traditional financial products, Daily Advance is built for the intensive speed and volume of e-commerce transactions, putting high-growth sellers in control of their working capital,” explained Oliver Whelan, chief revenue officer at Storfund. “There’s virtually no limit to what businesses can receive, whether they make sales of $10,000 or $1million in one day, Daily Advance will enable them to maintain their momentum.”
Storfund says it is the only provider of Daily Advance to have cracked the complexity of e-commerce 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.