amazon seller loan

The E-commerce scenario is rapidly gaining ground in India over the years, offering online customers a choice and variety of items of individual preferences at competitive prices delivered at home seamlessly. The market in India is huge because of the large population, deep internet, and connectivity penetration and a steadily rising economy. The spread of digital transaction is another factor driving the sales of every item under the sun at the click of a mouse. The big players in the Indian market are Amazon, Flipkart Snapdeal, which is a marketplace not to mention other sites specializing in select items.

Challenges facing online sellers and the role of finance:

The potential for growth beckoning an online seller in e-commerce portal like Amazon is great. As a digital merchant, you have to surmount competition by engaging in reducing lead times, efficient inventory management, pricing decisions, and catering to customer expectations, etc. Meeting these challenges in a B2C marketplace, the need for finance is vital. The right credit solution can be Amazon seller financing to help the business grow exponentially. The key role played by finance to the online seller is:
  • Help explore multiple marketplaces.
  • Increase and stock adequate inventory.
  • Diversify product categories.

Features and benefits of Amazon seller business loan:

There are various types of loan options for an online seller. The primary ones are:

Loan Type

Tenor Range

Bank Loan

1 to 30 years

Alternative Loan

2 to 5 years

Asset-Based Loan

1 to 3 years

Cash Advance

5 to 24 months.

Having learnt about the various types of Amazon seller financing options, the features that make these loans unique are:
  • A large range of loam amount from Rs.1L to Rs.1C or two times of your sales value at the marketplace
  • Quick disposal of loan applications.
  • Customized credit solutions based on data mining by lenders.

Benefits of Amazon seller financing:

  • Online Finance: The loan can be applied at the portal of lenders anytime and anywhere, sitting in the comfort of your home or office.
  • Business Expansion: The business profile of the seller can take a quantum jump with the help of appropriate credit solution. One can also diversify to multiple e-commerce sites to generate higher sales.
  • Flexible Terms: Most of the traditional lenders still adhere to the EMI system of repayment. Additionally, the Fintech lenders offer the facility of fortnightly payments to temper the cash needs of the seller.
  • Collateral Free: Most of the Amazon seller business loans are unsecured, obviating the need for collateral. The seller is thus free from mental anxiety.

Eligibility Criteria:

Online seller financing is extended by Banks, NBFCs, and new-age Digital Fintech companies who have charted an independent course of finance options to the prospective borrowers. There may be variations in the eligibility criteria between the two approaches. However, the criteria can be summarized as follows:
  • The business must be operational for at least one year.
  • Partnership with the E-commerce site must be at least six months old.
  • Minimum sales turnover needs to be Rs.75,000.

Documents Required:

When it comes to documentation for online sellers, it is necessary to segregate them based on the lending source:
  • Online Seller Bank Loans: In the case of traditional loans from Banks, Amazon seller financing will need the following:
    • Valid personal and Business KYC documents.
    • Application.
    • Valid Tax returns.
    • Bank statement.
    • Balance sheet and P&L account statement.
    • Personal financial profile.
  • Alternative Amazon Seller Loans: Apart from the conventional business loan lenders, NBFCs like Lendingkart have arrived on the horizon catering to the various small business borrowers in harmony with the emerging trends in a digital marketplace. We offer innovative collateral free credit solutions with flexible terms that make their loans attractive. The documents sought are:
    • Valid personal and Business KYC documents.
    • Application
    • Valid Tax Returns.
    • Bank statement.
    • Debt schedule.
    • P&L statement.
  • Cash Advances for Amazon Seller: The payment process in the E-commerce marketplace involves card payments, virtually locking up the capital of the seller temporarily. New-age loans to the online seller ensure that the business is not starved of cash flow to meet various needs through Merchant Cash Advance. Based on the volume of card sales. It differs from the traditional loan to the extent that it depends on the seller’s future receivables at a discount to the lender while providing advance. The advantage is that the lender partners with the POS service provider to access accurate data of credit card sales. The documents required for this type of loan are:
    • Valid personal and Business KYC documents.
    • Application
    • Bank statements
    • Credit Card Statements

How to apply for Amazon Seller Business Loan:

The application procedure is simple and seamless in the case of Fintech lenders as compared to the Banks and NBFC. At Lendingkart, the process is fully online – from application to sanction and disbursal. The following simple steps complete the loan application process.
  • Submit online application filling all the details sought.
  • Upload digital copies of the requested documents.
  • The application and the documents are evaluated, and the best offer is made.
  • On acceptance of the offer, the loan is approved and the account is credited as disbursal.

Fees and Charges:

Coupled with the simplicity of loan application at the chosen Fintech portal, the Amazon Seller Business Loan offers generous terms. Some of the notable points to consider are:

Type

Details

Rate of interest

It is variable and can be up to 30%

Tenure

Dependent on the type and nature of the loan

Processing Fee

 1% to 2% one time

Pre-closure  Fee

Nil

Repayment schedule

Flexible in Monthly or Fortnightly

Planning to apply for Amazon Seller Business Loan? Try LendingKart!t

At LendingKart the procedure for applying for an Amazon Seller Business Loan is completely online, thereby making the procedure an easy one and hassle free. With us, the process is entirely online starting from the application to the disbursal in a few simple steps.

Amazon Seller Loan FAQs:

1. What is the meaning of Amazon Effect?

It refers to the impact of Amazon as an E-commerce major driving the online marketplace as compared to brick and mortar marketing establishments.

2. How does Amazon or similar eCommerce entities score over brick and mortar retailers?

Easy shopping experience, free returns policies, quick delivery with fast shipping services makes online shopping attractive.

3. What is the turn-around time for Amazon seller financing?

It is as low as 72 hours with online processing.

4. Apart from Amazon, what are the other popular Ecommerce sites in India?

Flipkart, Snapdeal, Myntra, Jabong, eBay and Pepperfry are some of the other popular sites for online purchase.