Even after their much anticipated press conference in Santa Monica last week, Amazon.com has yet another ace up their sleeve. The ecommerce behemoth has been rumored to be quietly launching a lending program that will offer financing options for marketplace sellers similar to Kabbage.com and PayPal’s Bill Me Later.
News of this story broke when sellers started receiving letters from Amazon.com offering loans through a service called “Amazon Lending By Amazon Capital Services, Inc.” According to the letter, the loan process works
by having sellers register using their “Selling On Amazon” user ID and password. When approved, Amazon deploys the funds into the seller’s Amazon account within five days. In correspondence with the Amazon letter, Amazon will only let sellers use the loan money to support their Amazon business, unlike Kabbage or Bill Me Later.
Although the need for working capital is always evident, more and more large businesses are noticing a profitable opportunity in offering financing to online merchants. Started in 2009, Kabbage Inc has gone on to help nearly 30,000 customers find working capital to help boost their online business. Kabbage targets online merchants that run their business their various marketplaces like Amazon, eBay, Etsy, Shopify, and Yahoo Stores. Advances from Kabbage range between $500 and $40,000 based on specific criteria like sales, time in business, transaction volume, social media, and seller rating.
While Amazon hasn’t officially announced their lending program to the world yet, many Amazon sellers are gearing up to take advantage of this prospect and start expanding their business. Tell us if you would be interested in using Amazon Lending and why? Email us at Support@e-commercegenius.com or Nick@e-commercegenius.com.