Black Friday and Cyber Monday (BFCM) is a milestone sales weekend in the US. Black Friday happens on the Friday after Thanksgiving, while Cyber Monday focuses on online deals the following Monday. These shopping holidays mark the unofficial start of the busy holiday season for retailers—and a golden opportunity to experience tremendous sales growth.
While BFCM is undeniably critical for Shopify businesses, seizing on the peak selling season also demands advance preparation. In 2023, Shopify merchants reached a record $9.3 billion in sales on BFCM, representing a 24% year-over-year increase. With 61 million customers purchasing from Shopify-powered brands, this period underscores the platform’s ability to empower businesses. However, achieving such success during BFCM requires careful preparation, strategic foresight, and, crucially, access to capital.
Take Shock Surplus, for instance. With funding through Shopify Capital, Shock Surplus has been able to buy directly from some of the large wholesalers in its industry.
"It’s very hard to buy directly from some of the big brands in our space unless you have volume and money to back up that volume,” said Founder and CEO Sean Reyes. “You need a lot of cash runway. Shopify Capital has helped us approach the biggest brands in our industry by allowing us to go to them with large checks to show that we’re serious.”
Sean’s story underscores how Shopify Capital isn’t just a source of funding: it’s a catalyst for growth and a gateway to opportunities that were previously inaccessible. Strategic access to capital can set businesses up for BFCM success in a few key areas:
- Inventory or product expansion: Stocking up on popular products and capitalizing on early holiday shoppers
- Marketing: Amplifying reach and attracting new customers in a crowded holiday season
- Cash flow: Ensuring smooth operations during the surge in demand and unexpected expenses
- Retail: Investing in upgrades to streamline the shopping journey and meet customer expectations
- Operating expenses: Scaling retail staff and resources to handle the BFCM rush
Businesses have a variety of options to secure funding for BFCM, from traditional lenders to alternative financing solutions. Traditional lending partners usually have incredibly specific criteria, a lot of paperwork, and slow turnaround times. Alternative options—like Shopify Capital—have more flexible criteria, a simpler application process, and a faster disbursement of funds compared to traditional lenders.
Shopify Capital is a founder-friendly solution to access capital funding. Unlike traditional lending options, Shopify Capital prioritizes your business’s potential, not just your credit history. You can access up to $2 million in funding, if approved, (with options for additional funding) and it comes with 0% equity, meaning you keep complete control. To date, more than $5.1 billion has been funded through Shopify Capital fueling brands’ growth and helping them prepare for key sales opportunities like BFCM.
In this blog, we’ll break down the five key ways your business can leverage Shopify Capital financing to unlock your sales potential during BFCM.
1. Inventory or product expansion: Scale product offerings
Inventory management is a constant concern for brands, but it becomes especially critical ahead of BFCM. Consider the fact that holiday shopping is an all-year affair for many shoppers. In fact, 19% of US shoppers look for gifts year-round, a 16% increase from the previous year. It’s never too early to ensure your business has stocked shelves, both in store and online to capture those potential sales.
Shopify Capital could help you build a robust inventory with flexible and timely financing. We provide the resources you need to:
- Launch new product lines: Think about seasonal trends or complementary products that capitalize on BFCM shopping habits.
- Expand into new categories: Diversify your offerings to attract a wider audience during the peak season.
- Negotiate bulk discounts: Secure larger quantities and negotiate deeper discounts with suppliers, boosting your profit margins.
The Buffalo Wool Co.’s success with Shopify
The Buffalo Wool Co., a manufacturer and seller of high-quality bison products, has spent the last 12 years developing a supply chain that brings together bison ranchers, small independent mills, and local manufacturers. Despite growing about 20% year-over-year since their inception, the company has struggled with the gap of time between paying vendors and their busy selling season during BFCM. Through funding by Shopify Capital, they were able to grow their inventory before winter and the holiday season.
2. Marketing: Amplify reach and engagement
The crucial lead-up to BFCM is where brands set the stage for success. This is when they unleash their most creative marketing efforts, vying for a slice of the holiday shopping pie. Brands must launch strategic advertising early to stay top-of-mind and capture valuable market share before competitors saturate the space.
Porter Road’s success with Shopify
Nashville-based Porter Road, a champion of sustainable meat and local farmers, understood that traditional financing options wouldn't unlock their full growth potential. They needed a financing partner who could keep pace with their ambitions. That's where Shopify Capital came in.
"Shopify Capital provided the financing we needed to invest in marketing initiatives that promoted our brand," says Chris Carter, CEO of Porter Road. "Our strategic million-dollar marketing spend in 2020 continues to generate returns, driving a staggering $11 million in sales today."
By leveraging Shopify Capital, Porter Road more than competed in the BFCM marketing arena—they thrived. Their story demonstrates the power of well-timed marketing investments, turning a strategic spend into a long-term sales engine.
3. Cash flow: Ensure financial stability and covering short-term financing needs
BFCM is more than just a massive selling event: it’s a launching pad for the entire holiday season and beyond. Strong performance during BFCM can propel your business forward, building customer loyalty that lasts long after the discounts disappear. But capitalizing on this opportunity requires a well-oiled machine—and a healthy cash flow is the engine that keeps it running.
While BFCM promises booming sales, it can also strain your resources. Unexpected expenses crop up, and the surge in demand necessitates higher operating costs. Staffing needs might increase to manage the higher customer volume, and you may want to invest in upgrades to your technology infrastructure to handle increased traffic and sales. However, amidst these challenges, Shopify Capital provides a tailored solution to alleviate these pressures and empower your business for success.
Hell Babes’ success with Shopify
Jessica Wise, founder of Hell Babes, initially relied on credit cards to support the growth of her business. After realizing the limitations of this approach, she discovered Shopify Capital. The automated repayment process, which deducted small amounts based on daily sales, provided a much more manageable solution.
"Being a small business owner, there are different problems to solve, from cash flow to finding customers, and Shopify Capital was crucial," says Wise. Through Shopify Capital, Hell Babes was able to invest in inventory and other growth-focused areas of the business. With a healthy cash flow, Hell Babes had the resources they needed to meet customer demand and keep sales churning.
4. Retail: Enhance the customer experience
BFCM isn’t just about online sales. It’s a prime opportunity to create a welcoming omnichannel experience that delights customers both online and in store. But with increased foot traffic and heightened expectations, ensuring a smooth and positive experience requires organized (and memorable) retail operations.
Shopify Capital empowers you to invest in strategic improvements to elevate your retail experience this holiday selling season. Here’s how you can leverage your capital:
- Invest in store renovations: Create a more inviting and functional space for customers. Consider wider aisles, improved product displays, and comfortable seating areas.
- Upgrade technology: Implement faster checkout systems to reduce wait times and enhance customer satisfaction. Explore mobile hardware options like Shopify POS Go to give customers convenient checkout options and empower staff to clinch sales anywhere in the store.
The Public Pet’s success with Shopify
The Public Pet, a pet store, is a prime example of how investing in retail spaces translates to success. "Shopify Capital has made it easy to take advantage of more opportunities," says Jordan Lee, Founder of The Public Pet. "Funding allowed me to grow my inventory, expand my team, and improve my retail store." By streamlining their checkout process, The Public Pet ensured a smooth and efficient shopping experience for their customers during the busy holiday season.
5. Operating expenses: Handle payroll and rent
BFCM can be a whirlwind for your business. Fortunately, there are steps you can take to streamline your operations and ensure a smooth customer experience. By carefully managing your budget and resources, you can optimize your business for success during this peak sales period.
Holiday hiring is incredibly difficult. To support your business properly, you may want to invest in temporary staff or extended hours to manage the influx of customers. During BCFM in 2023, 86% of retailers faced challenges staffing customer-facing roles. Consider using sales forecasting tools to predict demand and ensure you have sufficient staff on hand. Additionally, be sure to review your shipping and fulfillment processes well ahead of BFCM to identify bottlenecks and implement improvements.
By proactively addressing operational needs, you can minimize disruptions and create positive experiences for your customers during BFCM. This will not only lead to increased sales but also foster customer loyalty that extends well beyond the holiday season.
Power up your BFCM strategies with Shopify Capital
Shopify Capital is a one-stop shop for unlocking growth during BFCM and beyond. So whether you need to stock up on inventory early, ensure a seamless cash flow, launch targeted marketing campaigns, elevate your in-store experience, or further support your operating expenses—or all of the above—Shopify Capital offers a versatile financing solution tailored to your business needs.
Remember, BFCM is a marathon, not a sprint. Strategic investments can fuel your success throughout the season. From early-bird inventory purchases in July to last-minute marketing pushes in November, Shopify Capital can equip you with the resources you need to succeed.
Available in select countries to eligible merchants. Eligibility is subject to change. Offers to apply do not guarantee financing. All financing through Shopify Capital is issued by WebBank in the United States.
*Shopify Capital loans are repaid based on a percentage of daily sales. The maximum repayment term is 18 months, and 2 minimum payments apply. The actual time period within which the loan is repaid may be less than 18 months.
