FBA funds inventory through Amazon's 14-day disbursement cycle. 1P wholesale funds inventory through Net 45 wholesale terms. The difference is real working capital — for a brand doing $1M of Amazon Canada-relevant annual revenue, the typical lift is ~$41,000. Run the math for your situation.
Edit the inputs above. Working capital tied up in FBA inventory float that would be released under 45-day wholesale payment terms on the addressable portion of your catalog.
Estimator only. Real impact depends on PO cadence, category seasonality, and existing inventory-financing arrangements.
Under FBA, your inventory dollars are tied up from manufacturing to customer purchase. Under 1P wholesale, you sell to the vendor (us) at wholesale, taking the inventory off your books on PO fulfillment and collecting on Net 45. The working-capital differential is the multi-week gap between FBA's disbursement and Net 45's predictable cadence, applied across the inventory volume that moves to the 1P channel. For a $1M-revenue brand with typical inventory days on hand, the calculator suggests ~$41K freed; the figure scales roughly linearly with channel volume.
It's a rough order-of-magnitude estimate based on the average inventory-days-on-hand for FBA-fulfilled CPG categories combined with the Net-45-vs-14-day disbursement differential. Per-brand reality varies based on PO cadence, category seasonality, and inventory turn velocity.
The default assumes most of catalog (~80%) moves to 1P. The estimator scales the result linearly based on the catalog portion input — Selective (~30%) frees less, Full Channel (100%) frees the maximum.
Not modeled. If you're using factoring, vendor credit, or working-capital lines specifically tied to FBA inventory, those would adjust the net impact. Discussed on the call.
Yes — we invoice on PO fulfillment; you collect on Net 45 with favourable terms. Predictable, on your invoicing cadence. For brands that specifically prefer shorter terms, Net 30 with a discount is negotiable.
If the estimated working-capital lift is strategically meaningful to your operation, bring your specific situation to a 30-minute discovery call. We'll run verified math and discuss how the cadence interacts with your existing inventory financing.