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10/9/2026

Cash gap for a seller: causes and how to avoid it

A cash gap for a seller is the moment when the money "on paper" exists, but there is none in the account. A business can be profitable, but right now there are not enough funds to pay for supplies, taxes, salaries, logistics, advertising and other mandatory expenses.
The main cause of a cash gap is the time lag between when expenses arise and when the money actually arrives from the marketplace.

Why sellers experience cash gaps

A cash gap occurs when expenses come in earlier than the money from sales. The customer has already placed an order, turnover is growing, but payouts from the marketplace will come in a few days or weeks. Meanwhile, the supplier, the tax office, employees and contractors need to be paid now.

The problem is especially common during rapid growth: order volumes increase, more product is needed, logistics and advertising costs are higher, and the money for previous sales has not yet landed in the account.

The main causes of cash gaps for sellers:

    Large product purchases
    Money goes into warehouse stock, which will only return as gross revenue in weeks or months. The slower the product sells, the longer the seller waits for the money to return to circulation.

    Mismatch between the timing of receipts and payments
    Example: the supplier needs to be paid today, but the marketplace will transfer the gross revenue in 5–10 days. On the reports everything looks fine, but physically the money is not there yet.

    Excess warehouse stock
    When stock for slow-moving items is inflated, money is frozen in products that sit there and barely sell. This reduces the available cash balance for ad campaigns, new purchases and mandatory payments.

    Sharp growth in sales
    Growth requires additional working capital. To avoid losing positions, the seller has to:

      increase purchase volumes;

      expand logistics and warehouse;

      increase the advertising budget.
      All of this needs to be paid for in advance — before the money for the increased sales comes back.

    Unplanned expenses
    A cash gap is often made worse by:

      additional logistics costs;

      paid storage;

      returns and defects;

      marketplace penalties;

      a sharp rise in promotion costs.
      All these factors increase the need for working capital beyond the amounts planned in advance.

    Seasonal purchases
    Before the high season, the seller invests large sums in purchases in advance. The gross revenue from these products will only come during peak demand, but suppliers and logistics need to be paid right now.

    Mistakes in calculating profit and free cash
    High gross revenue creates the illusion that the business "earns a lot." But from turnover you still need to subtract:

      cost price;

      marketplace commissions and services;

      taxes;

      external expenses (fulfillment, advertising, contractors).
      If you count all receipts as free cash, it is easy to invest too much in product and be left without money for mandatory payments.

Example of a cash gap for a seller

A cash gap can be seen in simple numbers.

Starting data at the beginning of the month:
the seller's account has 500,000 ₽.

In the next two weeks, the following needs to be paid:

    Purchase of a new batch: 350,000 ₽

    Advertising: 100,000 ₽

    Taxes and other expenses: 100,000 ₽

Total payments: 550,000 ₽.

The marketplace is expected to transfer 300,000 ₽, but the payout will arrive after the date of the main payments.

By the end of the month, the business may be in the black on profit, but right now there is a shortage of 50,000 ₽ to cover obligations:
500,000 ₽ in the account − 550,000 ₽ in payments = −50,000 ₽ deficit.

This is a cash gap: formally there is profit, but at the right moment there is no money.

How a cash gap differs from a loss

A cash gap is a problem with money in time, not necessarily with profit.

    A loss is when, over a chosen period (month, quarter, year), total expenses exceed income. That is, the business is actually losing money.

    A cash gap is when on a specific day or week there is not enough money in the account to pay obligations, even if the business will be profitable at the end of the period.

Example:
A seller expects to receive 700,000 ₽ in a week.
Today, a supplier needs to be paid 400,000 ₽, but there is only 300,000 ₽ in the account.

The money is already "earmarked" in the income of the future period, but the current payment cannot be made. This is not necessarily a business loss, but it is a cash gap in terms of money.

How to see a cash gap in advance

To see a cash gap before it happens, you need a payment calendar — a table where all future receipts and all future payments are shown by date.

The principle is simple:

Balance at the end of the period = Balance at the beginning + Receipts − Payments

If on any day or week the projected balance drops below zero, it means a cash deficit is planned for that moment — a potential cash gap.

The payment calendar should include:

    payouts from marketplaces;

    product purchases and prepayments;

    logistics and storage;

    advertising and promotion;

    taxes and contributions;

    salaries and contractors;

    rent and recurring services.

The main thing is to look not only at "how much we will earn in a month," but at "how much money there will be on specific dates."

How to avoid a cash gap

1. Control product turnover

High turnover helps avoid a cash gap: the faster a product sells, the faster the money returns to the account.

To do this, it is important for the seller to:

    track sales speed for each item;

    before a new purchase, analyze not only the remaining stock but also the pace of realized sales;

    not replenish slow-selling products in the same volumes as fast-moving ones.

If you keep many slow-moving items in the warehouse, money will "lie in boxes" instead of working in advertising, new supplies and development.

2. Do not buy product based only on sales growth

Growth in orders does not mean you can mindlessly invest all free cash in new batches. If almost the entire account balance goes into purchases, there may not be enough funds:

    for advertising to support sales;

    for taxes and mandatory payments;

    for logistics and operating expenses.

The size of a supply should be calculated taking into account:

    current remaining stock;

    average sales speed;

    expected demand;

    available cash balance considering all future payments.

3. Separate gross revenue from actually free cash

Gross revenue from a marketplace is not "net money," but total turnover, from which a mass of expenses still needs to be subtracted.

Inside gross revenue there is already:

    product cost price;

    marketplace commission and services;

    taxes;

    external expenses (fulfillment, advertising, services, etc.);

    future purchases of the next batch.

If you perceive all gross revenue as a free resource, it is easy to:

    overstate the advertising budget;

    order extra product;

    take on new obligations.

That is why assessing the health of a business only by turnover is risky. It is important to look at profit, cash flow and real cash balances.

4. Create a reserve cash fund

A financial reserve reduces the risk of business stoppage if payouts are delayed or expenses unexpectedly rise. This is a cushion from which the following are covered:

    delays in payouts from the marketplace;

    sudden penalties and additional logistics costs;

    urgent large supplies.

The optimal reserve size depends on the model and scale of the business. A basic guideline is that the company can pay mandatory expenses for a certain time (at least several weeks) without new receipts from marketplaces.

5. Plan cash flow several weeks ahead

Preventing a cash gap is always cheaper than "putting it out." To do this, the seller needs to regularly forecast:

    how much money will come from marketplaces and on what dates;

    what mandatory payments there will be and when;

    when the next supply needs to be paid for;

    what budget will be needed for advertising;

    which products need replenishing and in what volume;

    how much money will remain after all mandatory expenses.

If such a forecast is made at least 3–4 weeks ahead, the risk of a sudden cash gap is greatly reduced.

How Torgstat helps reduce the risk of a cash gap

The service helps track exactly those metrics that most often underlie cash gaps: profit, expense structure, remaining stock and turnover.

With Torgstat, a seller can:

    see real profit and cost structure
    Track:

      gross revenue,

      cost price,

      marketplace services,

      taxes,

      external expenses.
      This makes it possible to understand how much money the business actually earns, rather than simply cycling through turnover.

    control remaining stock and turnover
    Determine which products hold money the longest, which items freeze too much working capital and require a review of purchases.

    plan supplies based on data, not "by eye"
    Assess current remaining stock and sales speed in order to:

      avoid buying more slow-moving product;

      replenish fast-moving items in time;

      avoid investing extra money in the warehouse.

    identify low-margin products
    Find items that create turnover but add almost no profit. Such products often worsen cash gaps: a lot of money is circulating, but the net result is weak.

    consolidate several marketplaces in one interface
    View the financial picture for the business as a whole, rather than for each platform separately. This helps assess overall cash flow more accurately.

    analyze dynamics by period
    View reports for a week, month, quarter, and track changes in profit, margin, remaining stock and turnover over time.

Example of use:
If in Torgstat you can see that:

    gross revenue is growing,

    but at the same time remaining stock in warehouses is increasing,

    and turnover is falling,

this may mean that more and more money is "getting stuck" in product. In such a situation, there is a high risk that there will not be enough free funds for the next purchase, taxes or advertising budget.

Data from Torgstat can be used as the basis for financial planning:
determine which products should be replenished, which should be temporarily frozen, and how much actually free cash remains after all obligations.

Which metrics a seller needs to control

To notice the risk of a cash gap in time, it is not enough to look only at gross revenue. You need to see the economics of the business as a whole.

Key metrics worth tracking:

    profit — how much money remains after all expenses;

    cost price — what the product actually costs;

    marketplace expenses — commissions, logistics, services and penalties;

    remaining stock — how much money is frozen in product in warehouses;

    turnover — how long it takes for a product to turn back into money;

    margin — what percentage of profit each category or product generates;

    sales dynamics — how turnover and profit change by period.

The fuller the picture, the lower the risk of making a wrong decision: investing too much in purchases or advertising simply because turnover is growing, without noticing that free cash is becoming less and less.

What to do if a cash gap has already occurred

When a cash gap has already happened, the task is not just to fill it with money, but to understand the size of the problem and its causes.

Step-by-step approach:

    Assess the deficit
    Calculate:

      how much money is missing;

      on which specific dates problems arise;

      when and in what volume the next receipts are expected.

    Review upcoming payments
    Possible steps:

      postpone non-essential expenses to a later date;

      reduce purchases of slow-moving or questionable items;

      cut some ad campaigns that do not provide sufficient return;

      agree with the supplier on a deferred or installment payment;

      split a large payment into several parts.

    Deal with the cause, not just the symptoms
    If cash gaps occur regularly, the problem may be:

      in excessively large stock;

      in low margin;

      in incorrect purchase planning;

      in the absence of a payment calendar and cash flow control.

Without changing these factors, the cash deficit will recur even as turnover and sales grow.

FAQ

Can a profitable seller have a cash gap?
Yes. Profit shows the result for a period, while a cash gap is a shortage of money at a specific point in time.

Why do cash gaps often occur during sales growth?
Growth requires more working capital: purchases, logistics and advertising increase, while the money for new sales comes in with a delay.

How is warehouse stock related to a cash gap?
Excess stock freezes working capital. The slower a product sells, the longer the money cannot be used for other expenses.

How can you notice in advance that a cash gap is about to appear?
You need to make a forecast by date: all receipts and all payments. If on some day the expected balance goes negative, there is a risk of a cash gap.

What is more important to control — gross revenue or profit?
Both metrics are needed, but they are not enough to manage money. It is also important to track real receipts and payouts by date, product remaining stock and turnover.