Debenhams Group launches faster payments for marketplace brands

Debenhams Group has introduced a faster-payment service for eligible sellers across its network of more than 30,000 marketplace brand partners, offering daily access to up to 80% of shipped sales revenue through Storfund.

The Daily Advance service is live on Debenhams, as reported by Retail Gazette. It allows participating brands to receive money when orders are shipped, ahead of the marketplace’s usual payment cycle.

What happened

Storfund advances the initial payment against shipped sales. When Debenhams Group makes its scheduled marketplace payment, Storfund pays the outstanding balance to the seller after deducting applicable fees. For sellers receiving an 80% advance, that balance is 20% before fees.

Joining the scheme is voluntary and depends on eligibility. There are no subscription charges, set-up costs or minimum contract term, although the fees deducted from the final payment mean the service is not fee-free.

Eligible partners can use the arrangement across the group’s marketplaces, including Debenhams, boohoo and PrettyLittleThing, without additional administration. The announcement does not specify fee rates, eligibility criteria or the length of the standard settlement cycle.

The distinction between shipping an order and receiving the proceeds is central to the offer. It also underlines the importance of accounting for payment timing in cash flow forecasts: the service changes when sellers receive revenue, rather than the value of their underlying sales.

The background

Some Debenhams marketplace sellers were already using Storfund’s Daily Advance service before the group partnership. The new arrangement embeds access within the platform, with the aim of making the service easier to use during busier trading periods.

Marketplace sales represent 38.9% of Debenhams Group’s gross merchandise value, against 32.7% in the corresponding period a year earlier. That is an increase of 6.2 percentage points, putting a larger share of the group’s trading activity within the marketplace model.

The launch adds seller financing to the developments taking place across online retail platforms. Elsewhere, the easyJet founder has launched easyShop across 21 European markets, while a reported marketplace VAT collection proposal puts payment administration in focus.

What people are saying

Debenhams Group chief executive Dan Finley linked the service to the company’s marketplace-led strategy. He said the group wanted its platforms to become a preferred route for brands seeking to reach more customers and expand their businesses.

Finley identified the approach to peak Christmas trading as a particular reason for giving sellers earlier access to money. His position was that faster receipts would give brands more flexibility over when they reinvest.

Justin Hanna, Storfund’s director of platform partnerships, said access to liquidity was becoming a more important area of development for marketplaces, following work on shopping, advertising, fulfilment and settlement services. He said greater control over cash flow could help sellers buy stock, respond to demand and fund growth.

What happens next

For eligible brands choosing to participate, the immediate practical decision is whether earlier access to sales proceeds justifies the applicable fees. The announcement gives no timetable for further changes to the service.

Debenhams Group also expects potential benefits for shoppers if sellers use the earlier payments to support stock purchasing. It said the arrangement could improve availability, broaden product choice and potentially support more competitive prices; these are anticipated outcomes rather than reported results.