Cash flow vs profit for sellers
Why a profitable product can still strain the business if cash is tied up in stock, ads or slow payouts.
Profit is not timing
Profit tells you whether the sale works economically. Cash flow tells you whether you can afford to get from purchase to payout.
A growing seller can be profitable on paper and still feel squeezed if stock and ads are paid for before revenue lands.
Inventory changes the rhythm
Stock purchases turn cash into products before sales happen. The bigger the order, the more important sell-through speed becomes.
When testing a new product, smaller batches can protect cash even if unit cost is slightly higher.
Ads spend before they prove themselves
Advertising can create a cash-flow gap because spend happens before the full profit picture is clear.
Set daily spend limits based on what the product can absorb, not just what the platform recommends.