- Cymbio’s new feature automates and streamlines payments for its 400-plus brand clients.
- The company said its clients previously waited an average of 30 to 45 days to receive payments.
- The new feature comes six months after the company received an undisclosed investment from PayPal.
Cymbio, an Israel-based digital-sales startup, is making it easier for brand clients to get paid instantly when selling on retailer websites like Walmart, Macy’s, Nordstrom, and Kroger. These marketplace websites are becoming an increasingly important place for brands to make revenue.
Cymbio has launched a new feature for its more than 400 brand clients called Cymbio Finance, which automates payouts for brands selling on retailers’ sites. Prior to this financial offering, Cymbio, which was founded in 2014, predominantly focused on providing technical support for brands selling on outside websites. Cymbio handles tasks like inventory management and gathers sales data.
US marketplace e-commerce sales grew by 45% in 2020, according to Insider Intelligence, a division of Insider’s parent, Insider Inc. Though the year-over-year growth in 2022 is only projected to increase by 14.8%, US marketplace e-commerce sales are still expected to hit $357.26 billion this year. And a key part of that growth is ensuring brands are paid in a timely fashion.
Cymbio’s cofounder and CEO, Roy Avidor, told Insider that it would previously take an average of 30 to 45 days for brands using its platform to receive payments for their digital sales.
“What we’ve been hearing from our brands is that it has been challenging for them to deal with getting paid and also it’s prevented them from growing and launching in more marketplaces,” Avidor said.
Avidor added that the ongoing global economic downturn sped up plans to launch Cymbio’s new feature, with cash flow being a “significant” challenge for brands at the moment, he said.
The launch of the new feature comes six months after PayPal invested an undisclosed amount of capital in Cymbio. As of October, Cymbio has raised over $28 million, according to PitchBook.
Supporting brands as marketplaces grow
Over the past several years, big brands and lesser-known third-party sellers have moved to selling their items on marketplaces, which have become increasingly popular.
Walmart, which launched its marketplace in 2009, now has roughly 200,000 sellers on it — about twice as many as it did in summer 2021, according to estimates from Marketplace Pulse, an e-commerce analytics firm. By comparison, Amazon says it has nearly 2 million third-party sellers on its marketplace.
Retailers like Costco, Kroger, Shoes.com, Macy’s, and Nordstrom have also launched their own marketplaces, where outside brands sell goods directly to customers, over the past few years. Cymbio also supports dropshipping operations, a fulfillment method in which an online retailer does not keep the products it sells in stock, but instead purchases them from a third party and has them shipped directly to the customer.
Major brands that sell using Cymbio include footwear manufacturers like New Balance and Steve Madden, as well as the womenswear company Marchesa. And with the addition of the new financial-services feature, Avidor expects his company’s client base to more than double by the end of next year.
“We see ourselves getting to thousands of brands in 2023,” he said.
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