Amazon Loans Help Sellers Finance Operations
An interesting new program being offered by Amazon is stirring up a lot of interest among sellers looking to finance their online sales capabilities on a larger scale.
Amazon Loans is an invite-only service that is offered strictly to selected sellers. It’s targeted towards Amazon’s smaller sellers, not just in the US, but also around the world in country-specific Amazon marketplaces. Using an algorithm, Amazon selects sellers to receive Amazon loans based on how often they run out of stock, how popular their products are, and other variables along these lines. Only the top performers and the most customer-focused sellers are considered.
If you are deemed one of the lucky ones, you’re going to receive an email along these lines: Based on your Amazon selling performance you are pre-qualified for a loan up to $…… Use these funds to purchase inventory and increase your sales on Amazon.com.
How Does the Amazon Loans Program Work?
If approved, the funds will be advanced to your Amazon Seller Account within approximately five business days, and Amazon.com will initiate a disbursement to your bank account on file. Your Amazon loan monthly payment will be automatically deducted from your Amazon Seller Account.
Interest rates vary but commonly sit around the 10 – 13% mark. Getting financing from Amazon loans is cheaper than loading up your credit card for inventory purchases, but not cheaper than securing a bank loan. However, if your bank isn’t prepared to look at giving you finance, then an Amazon loan could be your shot at growing your business potential.
How Can You Apply for Amazon Loans?
Go to Amazon Lending to complete your loan registration. You will need to sign in with your Amazon Seller Account user ID and password. You may also sign into your Seller Central dashboard, look for the Amazon loans offer in the right hand column of the home page and follow the links to “Learn more” and “Register”.
