Zulily Vendor Payment Terms Extended from 30 to 60 Days

Online retailer zulily vendor payment terms recently changed from net 30 to net 60; what this means for zulily sellers expecting payment is a much longer wait.  Zulily sellers can cut the wait on payment from 60 to 0 days by factoring instead of waiting on payments.

Zulily Vendor Payment Terms: How Zulily Sellers Can Get Paid More Quickly

For a fee that might range from 1-5% of an expected payment amount, zulily sellers can factor – or sell – the payment to My Factoring Brokers and receive immediate payment of their receivable. The fee, called a factoring fee, is the all-in cost for receiving the advance on the amount that zulily owes to the seller.

Now that Zulily vendor payment terms have been extended to (essentially) more than 2 months after a sale event, this can make a big difference for manufacturers who are using zulily to establish or build their clothing or accessories brands.

Waiting two months to receive money that has already been earned can create significant cash flow challenges for a textile company, clothing manufacturer or accessories manufacturer who is selling through zulily.  It can create difficulties for them in meeting payroll or expenses, and can even slow or stall growth if the money is needed to take on new business, meet new orders, or expand into new distribution channels.

How the zulily vendor factoring process works:

1. A manufacturer or distributor receives a statement of earnings or expected payment from zulily. Instead of waiting 60 days for zulily to pay, they factor – or sell – the right of payment to My Factoring Brokers for a small fee (from 1-5% of the invoice amount).
2. The manufacturer or distributor receives free same / next day funding of an advance of up to 98% of the expected payment amount, enabling them to reinvest in their business immediately.

We help Zulily vendors find factoring programs with no hidden fees or add-on fees, so this minimal fee – the factoring fee – is a zulily vendor’s “all in” cost to use this financing tool.  We also help our clients get factoring agreements that don’t require them to sign long term contracts or commit to factoring minimums, so vendors can factor when they choose to without penalty.

Zulily vendors who are interested in getting paid more quickly can get a free, no-obligation proposal in 24-48 hours, and go from approval to their first funding in just a few days. 

There’s no cost and no risk to explore this option.  Scroll down and complete the form at the end of this post to request a quick quote for zulily factoring or contact us for more information.

Not a zulily vendor but have a question about factoring payments like these?

Nearly any type of business that invoices customers for payment or receives payments from a 3^rd party re-seller may be able to factor and receive same / next day funding on expected payments.  If you aren’t sure whether your organization could expedite cash flow by factoring customer invoices or payments promised to you by a third party, find out by filling out a quick quote form. We will be happy to answer your questions and help you decide whether factoring could benefit your organization.

Zulily Just Acquired by QVC (Liberty Interactive Corporation)

The announcement that payment terms for companies that sell clothing, accessories and other wares on zulily will be doubled comes less than a month after the announcement that zulily has been acquired by Liberty Interactive Corporation as part of QVC Group. The two entities will be operated separately, at least for now.  (Marketwatch.com, Starting a New Innings – Report on zulily)

While zulily might be most-known as an eCommerce retail site for unique baby and children’s clothing, zulily’s vendor application includes women’s apparel (including maternity clothing) shoes and accessories, men’s apparel, shoes and accessories,  toys, home goods, health and beauty products, luggage, sporting goods, electronics and even toys and accessories for pets.  Unlike retailers that buy inventory from manufacturers and distributors to resell, zulily does not stock inventory. Rather, they host the platform that facilitates the sale then manufacturers and distributors ship purchases directly to consumers.

The business model means that zulily customers must wait to receive their purchases, often for more than a week or several weeks. However, brand enthusiasts don’t seem to mind and value the platform as a way to access boutique and more custom-made wares that aren’t available in mass retail outlets or online eCommerce sites like amazon.

Zulily vendors, who ship directly to consumers making purchases at zulily.com, also have to wait for their payments. Unlike manufacturers and distributors that deliver inventory to re-sellers and generate an invoice right away, Zulily vendors are usually in the position of having to manufacture and ship out significant quantities of goods weeks (and now months) before they can expect payment from Zulily.

Don’t let long zulily vendor payment terms keep you from growing your business. Request a free quote for zulily vendor factoring or get more information about the factoring process on our website.