Sephora announced a new leadership appointment to oversee its presence in China, naming Xia Ding as managing director of Greater China. She will bring decades of experience, including time at JD.com, Hanes, and Nike.

The beauty retail detailed its new hire on April 15. The company noted the scope of her role, which includes mainland China and Hong Kong.

Sephora is part of LVMH, which ranks No. 3 in Digital Commerce 360’s Europe Database. Digital Commerce 360 categorizes the company as a Health & Beauty retailer.

Xia Ding’s role at Sephora

“Xia Ding is a quintessential leader with a wealth of experience in running businesses, digital transformations, and strategic business development,” said Alia Gogi, president of Sephora Asia. “I am confident that her skill set, knowledge of brick & mortar retail, expertise in digital and e-commerce, and proven track record in building and sustaining profitable business will take Sephora Greater China into its next phase of growth and success.”

Ding will report directly to Gogi. Sephora lists its Greater China market encompassing 350 stores and two e-commerce websites. It also operates associated digital platforms and apps. Globally, the brand counts 3,000 points of sale and operates in 35 different markets.

China was an area of experimentation for Sephora in 2023 when it debuted its “Stores of the Future” concept in Shanghai and Wuhan. The stores added unique Sephora services, free workshops, and new technology additions to reduce friction in the shopping experience and strengthen their omnichannel offerings.

Ding’s background before Sephora

“I am thrilled to join Sephora at a time where the prestige beauty market in China is at the cusp of its next growth phase,” Ding said in a released statement. “Sephora’s allure lies in its powerful curation capabilities, strong culture anchored in purpose and DE&I, and an incredible ability to offer beauty enthusiasts an ever-evolving retail experience.”

Before joining Sephora, she spent five years at Nike. There, she was vice president and general manager of e-commerce in the Asia Pacific and Latin America markets. Her other past roles included time as president of JD Fashion at JD.com, vice president of retail service at Nielsen in China, and vice president and director roles at HanesBrands Inc., leading expansion efforts in China.

Her arrival at Sephora comes as the company expands. The company’s website states that it has “an expanding base of 200 stores across the Asia Pacific region, including Australia, China, Singapore, Malaysia, Thailand, Indonesia, and India.” Sephora revealed in March, however, that it would shutter its operations in South Korea beginning in May.

JD.com Inc. is No. 1 in the Asia Database, Digital Commerce 360’s ranking of the region’s largest online retailers. It is also No. 4 in the Global Online Marketplaces Database.

Nike ranks No. 8 in the Top 1000 Digital Commerce 360’s database of the largest North American e-retailers by online sales. It’s also the highest-ranking Apparel/Accessories retailer in the Top 1000.

The post Sephora recruits former Nike e-commerce leader for China operations appeared first on Cross-Border Magazine.

Wayflyer, the revenue-based financing and growth platform for e-commerce businesses, has secured a $253mn debt financing facility from Credit Suisse.

Wayflyer will use the additional debt facility to support further origination, enabling it to quickly provide funding to e-commerce businesses helping them fuel growth, improve cash flow and drive sales. It will also allow Wayflyer to improve liquidity and support its ambition to offer the most competitive rates to its customers, in the U.S, and Western Europe. 

Wayflyer is proud of the firm’s robust business model, its disciplined underwriting model, and its position as a leading partner to some of the largest financiers in the world. Wayflyer also agreed to a $300m debt line with J.P. Morgan earlier this year.

Helping to solve working capital problems globally! 

Wayflyer specializes in providing funding to e-commerce businesses, helping them solve critical working capital problems that can constrain growth. By improving cash flow its customers are able to seize new opportunities such as acquiring additional stock, hiring talent, or simply improving the profitability and resilience of their business. 

Aidan Corbett, Co-Founder, and CEO, of Wayflyer comments: “Now, more than ever, e-commerce businesses need access to fair, flexible, and affordable funding solutions from a trusted and resilient partner. “At a practical level, this deal helps support our objective to offer the fairest terms and the best rates to our customers while advancing Wayflyer’s unwavering commitment to being a trusted partner, irrespective of the impact of wider economic conditions on the market.” 

To apply for funding or to find out more about how Wayflyer is helping e-commerce businesses, visit HERE!

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Handling the cash flow of your business is crucial for it to survive and thrive. That’s why we have joined forces with Wayflyer, the leading funding solution for growing e-commerce stores, to share an insightful article by their head of Australia sales, Brian Renvoize, which outlines six key tips for you to keep in mind when handling your e-commerce cash flow. 

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One question e-commerce advisor and expert Paul Waddy gets a lot is, “How much cash do I need in my business?” That’s usually followed closely by, “How much inventory do I need?” The answer to both lies in striking a healthy balance through good cash management.

“Your money is always tied up in your product, so you need that operating leverage,” he says.

Waddy has more than 12 years of e-commerce experience. He was ranked No. 2 on Inside Retail’s list of Top 50 People in E-Commerce, and he’s a seasoned adviser to some of Australia’s most well-known e-commerce brands.

We spoke to Waddy about his top cash management tips for keeping your business healthy and geared toward growth. A strong cash management strategy will make your business more resilient and allow you to take cash out of your company with peace of mind.

1. Hold 12 weeks of inventory to keep up with demand

Any e-commerce business should keep enough inventory on hand to cover manufacturing lead times and meet demand until their next batch of stock comes in. Importantly, they should hold enough stock to account for fluctuations in sales so that they don’t run out of cash if demand rises before a new batch hits.

Looking at businesses that import their product, you typically need to plan for 8 weeks of manufacturing lead times, plus another 4 weeks for shipping. That supply chain crunch is one of the biggest inventory management challenges that e-commerce founders are facing. Waddy’s recommendation is to keep at least 12 weeks of inventory on hand, and possibly even as much as 16 weeks, to make sure you’re safe.

“What we should do is be holding enough inventory to say, ‘I want to get a month’s worth of sales data on this,’ and then I can go in and replace my order so that just as I’m selling out, the inventory’s coming in,” Waddy says.

To benchmark your inventory, Waddy also recommends checking your week’s cover or month’s cover based on your sales data.

How to follow through: “I would encourage anyone to check their month’s cover — in other words, how much stock do I have on hand right now at a sales level,” he says. “If I’m doing a million bucks in sales and I’ve got $3 million of stock on hand, I have 3 months’ cover.”

With that data, you can determine how quickly you’ll sell out and when you’ll need to reorder. That will also help you understand when you’re at risk of having too much inventory as your next order is arriving. You don’t want to have too much cash tied up in inventory. Crunch the numbers, and if you’re getting close to the end of the month and holding too much stock, it’s time to run a sale.

2. Keep 10 weeks of cash on hand to stay resilient

While finding and then holding the right inventory levels is important, that can’t be your only focus. You also need to have money in the bank to acquire new customers and move your business forward for the long term. Plus, you need cash on hand to withstand those challenging periods where something goes wrong. Keeping at least 10 weeks of cash in the bank gives you a buffer to ride out any storms and operate with some wiggle room.

“You need to hold money in your bank account in order to hire new people, pay wages, do marketing — and all of these other things that are required as you grow,” Waddy says.

We’ve also seen plenty of factors impacting retailers and their profit margins over the last few years, whether it’s pandemic lockdowns, shipping delays, or inflation. The best way to protect yourself against factors outside of your control is by leaving yourself a buffer so that your business can sustain itself even if sales or revenues take a large hit.

Waddy points to the pandemic as an example of when many companies were left exposed because they didn’t have enough cash on hand to survive turbulent conditions.

“We saw the honor roll of businesses that went belly up during COVID. Why? Because they ran out of money,” he says. “The death knell for those companies started well before COVID. Some of those companies went belly up within weeks. They didn’t even have two weeks’ worth of free cash. Others sailed through because they had the cash, and they came out the other end stronger than ever.”

How to follow through: Plan for a rainy day and hold onto cash even when you’re growing. To figure out how much you need, Waddy recommends adding up only your fixed expenses for 10 weeks: staff wages, rent, and utilities, for instance. That’s the number you should target. Otherwise, it might be too late to access funding from financing providers once you really need it because they’re more likely to see you as a risk.

3. Look out for irregularities in your gross margins

Extreme dips and spikes in your profit and loss statement month-over-month could be a sign of a bookkeeping error, and you’ll want to get that cleaned up.

Any size retailer can have this mistake — not just startups — so it’s something every e-commerce founder should watch for. Companies that don’t offer big discounts and have consistently strong margins of around 70% should see steady growth in their P&L statements. If there are consistencies in your gross margins, you know there’s likely a mistake.

“You see your gross profits on your P&L going up, down, up, down, in months where you know you’ve had a good month,” Waddy explains. “If all of a sudden you drop into loss-making territory, and you’re sort of scratching your head, trust your gut. Your bookkeeper is entering your purchases incorrectly.”

How to follow through: “Practically speaking, open up your Xero file right now, and go check your gross margin,” he says. “If your gross margin is fluctuating, your COGS and your purchases are being entered incorrectly.”

Speak to your bookkeeper or head of finance if you see this trend so you can clear up the mistake and get your purchases entered correctly.

4. Run your business as if it’s about to be sold

Keep your business running smoothly, so you’re always prepared for a partner or potential buyer to come on board. Even if you’re not actually selling, you’ll tighten up your finances so you can operate more efficiently and gain more consistent margins.

“If you’re sitting down with a potential buyer and you go, ‘Oh yeah, my gross margin is usually 55%, but last month it was 33%, but don’t worry. That’s just because of something John the accountant’s done,’ the buyer is losing confidence,” Waddy says. These types of bookkeeping intricacies make it more difficult for you to gain visibility into what’s happening at your company. Instead, be consistent in your accounting and efficient in your cash management, so you’re well poised for growth.

How to follow through: “Keep it squeaky clean; [hold] cash in the bank,” Waddy says, offering tips on how to go about this. “You have to have enough cash, and your COGS and margins have to be consistent.” Run due diligence on your own business, so you’re prepared for a sale if one does come up. You’ll better understand your own cash flow and uncover opportunities to improve your margins so you can grow faster in the meantime.

5. Deal with financial partners who understand e-commerce

One way to work out mistakes in your bookkeeping is by working with an accountant or financial officer with eComm experience. You should also seek out funding partners who have an e-commerce background to make sure you’re getting the most value for your brand.

“Whether [you’re working with] a CFO or in-house finance manager, an outsourced CFO, an accountant, or a bookkeeper, they have to have e-commerce experience,” Waddy says. “There are nuances with e-commerce finances that just don’t exist in other businesses.”

This is the best way to avoid common mistakes in your bookkeeping, such as those spikes and dips in your P&L statements we mentioned above. A CFO or accountant with e-commerce experience will understand those nuances that are unique to e-commerce. They’ll make sure your purchases are entered correctly, your margins are consistent, and you’re tracking toward growth.

Don’t just look for e-commerce experience when it comes to your internal finances. Financing providers who have an e-commerce background will understand how to view the industry and your company’s place within it, giving you more value and better terms than other providers.

How to follow through: “You’ve got to get a lender — a partner, really — that specializes in e-commerce,” Waddy says. “Traditional lenders don’t want to touch you, and when they do, the terms are astronomical. I’ve been on those terms with multiple banks getting drilled by the interest rate. I don’t think I would advocate anybody taking money from a facility that doesn’t understand what you’re doing.”

Instead of seeking out funding from a bank or a commercial lender that may not have the modeling or the background to properly assess your company’s potential, try a revenue-based financing provider like Wayflyer. You’ll get quick access to funds and flexible remittance terms — because we’re deeply ingrained in the world of e-commerce, and we want to see founders succeed.

“Wayflyer is all about e-commerce,” Waddy says. “I’ve been in that position where I’ve gone to the bank, and they haven’t understood. Wayflyer is able to analyze the data and look at it in their own due diligence. ‘Is this a good retailer? Yep, we can see how our financing can help them grow.’”

6. Lean on Wayflyer as your cash buffer

You should be able to extract cash for yourself and still leave a buffer in the business to operate. Outside financing is often a sound option to help build up that buffer. But you don’t want to turn to finance partners when you’re unprepared or negotiating from a weak position.

“Scrambling for financing in a position of weakness when it’s too late means you’re giving equity away to a shark,” Waddy says. “You’re taking high interest rates on whatever loan you can get your hands on. You’re borrowing from friends and family — I’ve seen it all. I think you need to get ahead of the curve. And that’s what the cash buffer is.”

Still, you shouldn’t have to leave all of your money in your business just to see it operate and grow. Instead, you can turn to revenue-based financing to fund your inventory, for example, and hold more cash in the bank so you can comfortably withdraw money when you need it. After all, that’s what getting into business is all about.

“I would absolutely advocate for a founder saying, ‘Well, I need to pull money out to live,’” Waddy says. “Wayflyer can come in and be that cash buffer so that founders can take good money out of the company and improve their lives.”

Learn more about how Wayflyer’s flexible funding options can help you fund your working capital cycle and build up a cash buffer for your e-commerce company.

The post 6 tips to handle your e-commerce cash! by Wayflyer appeared first on Cross-Border Magazine.

The European entrepreneur differentiates from other entrepreneurs globally in many ways: for once they have to battle in a remarkably competitive market. Europe is filled to the brim with high-quality brands, companies that have centuries of history, and even some of the world's top-notch technological and industrial brands. 

Do you want to know more about international commerce, e-commerce, and also get all the tips and news that might give your company an edge? Subscribe to Cross-Border Magazine and get your digital copy now for free!

This is by no means an easy market. Especially for those who are just starting from scratch. 

So, what can we do to be successful as European entrepreneurs? Let’s find it out today! 

How to be an entrepreneur in Europe?

First things first, to be an entrepreneur in Europe you need two fundamental things: comply with all the current legislation that will allow you to enact your commercial activity in whichever country of the Union you are based, and secondly, have the nerves and the steel to pursue a total commitment towards acquiring or developing the following five traits. 

Otherwise, your story as an entrepreneur will be short-lived and probably doomed to fail. 

Legal requirement to start a business in the EU

Depending on the country that you choose, the type of business, and the legal formula you want to use - either be a company, a limited society, or a corporation just to mention a few - you will face different kinds of requisites to be able to legally operate inside the EU. 

And please, do pay attention to this first step. Becoming an entrepreneur in the EU is something that you can not do outside of the law. This is not like it happens in Latin America or India - just to put two examples - where you can start rolling out with your business and eventually find your way around all the legal paperwork. 

Laws concerning commercial activities in the EU are enforced with keen zeal by each member state government and often carry with them heavy sanctions that can fatally wound any fledgling business.  

• Don't even start your business if you do not have all the legal requirements for your commercial activity. Not even to “try out” with just a “few quick sales among friends” for this could bring legal consequences for you, your business, and your brands. 

If you want to know more about what specific legal requirements you need to comply with, we highly recommend that you check your desired business activity requirements on the corresponding website of the national authority for that activity in the country in which you want to operate. 

And you can also use this official link to have a general idea of the requisites inside the EU. 

Entrepreneurs are flexible and resilient 

With the legal part of our chests, we can start checking out some core traits that will give you the cutting edge if you plan to become a European Entrepreneur. 

And the first one is to develop business flexibility. This is fundamental in Europe.  

Business flexibility is the ability of a company to adapt to changing circumstances and thus remain a profitable enterprise. A business that is able to anticipate changes in consumer preferences and alter production to meet those new expectations has a much better possibility of continuing over the long term. 

For this reason, including measurement of flexibility within the company operation is often considered key to assessing the strength of the business, and thus arriving at an accurate understanding of the potential for business endurance.

This becomes acutely important in highly competitive markets, like the European one, where a new product or a product innovation for an already established product, can shift the entire “balance of power” for that particular activity, plunging into the deeps of the ocean those companies incapable of adapting themselves to the new competitor. 

Entrepreneur Lifestyle: focus and commitment

Focusing on your goals, and pursuing them relentlessly is also a fundamental trait for the European entrepreneur. The EU market is highly competitive but, it is also considered stable from an inflation and economic perspective. 

This in turn allows for long-term plans to be implemented with a certain degree of accuracy, as long as “ceteris paribus” applies, meaning, as long as no massive innovation or breakthrough comes to light in your line business. 

For the European entrepreneur, success is usually achieved via discipline. It's a marathon, not a sprint. 

So try to keep your long-term plans on the horizon, be focused on the small things that you can do to improve every single day, and pursue the mid and short-term goals with relentless dedication. 

Keep in mind that, in the EU, most small businesses take at least 2 to 3 years to be profitable and become truly successful once they’ve hit the 7 to 10 year mark. 

An Entrepreneur is smart and keeps learning

Finally, the third component you must have is the will and wisdom to keep learning. You need to understand that entrepreneurship in general, is a lifelong vocation. This is not a second plate gig that you can do “just to increase a bit more my revenues” it doesn't work like that. 

To be successful you must dominate a lot of things that are, by their own nature, everchanging: payment methods, logistics, competition, markets, and so on and so forth. 

So when we said “you need to keep learning” it is not a recommendation or guideline, is a requisite. You need to set time apart from your daily schedule to learn every day a bit about the things that might impact your business. 

For many entrepreneurs, this comes as a natural thing, because well, normally those with curious minds end up choosing the adventurous path of entrepreneurship. But if you feel lacking in this department, it might come in handy to develop a routine of “continuous improvement”. 

This is a nice way to do it by combining intellectually challenging activities with hobbies but you can rest assured that we will also provide you with our own Cross-Border Guide for Entrepreneurs to Keep Learning in the near future! 

Finally, we want to leave you with two more unofficial traits that, even if they are not technically needed to be successful, we can highly recommend: 

Be humble and efficient and be yourself and unique. 

Do not think that you know already all that there is to know about any specific part of your business or the market, and have the degree of human decency to give allowance for your own mistakes or for other people to make mistakes in good faith. 

Things, sometimes don’t go the way we want them. And we can’t be crucifying the whole world for the slightest mistakes. 

In that same line of thought, you can perfectly well be efficient without being rude. Finally, try to be yourself. Being different is good for a brand or product. It makes you earn a place in the mind of the consumers, it gives you identity. As an entrepreneur it applies the same principle: be unique, be yourself. That’s the best way to stand among the crowd!

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