Amazon Seller Business Loan

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Do you want to grow your online business on Amazon and need funds for the same? Several financing options are available in the market and these financiers can lend for running capital requirements to grow the business. If you don’t have a customer base or are new to Amazon, then you are in need of funds as well as details about how to get started.

It is quick and easy to start as a vendor with Amazon, but understanding customers and growing require smart and hard work. It is always better to understand certain details before you apply for a business loan.

Challenges faced by an Amazon vendor

Starting business needs funding Banks or financial institutions offer the same, but that might seem to be a hard task. The online platform is growing day by day and banks need proof of a clear track record in order to lend loans.

There are also non-institutional vendors who are ready to give business loans to Amazon vendors.

Amazon seller business loan

Since 2012 the online selling platform Amazon started giving out business loans and this plan was extended to Japan and United States of America. From this year, Amazon has planned to give out loans to Indian small scale vendors. It has linked with 6 lenders including banks in India for providing loans. The features are:

  • The loan amount varies between INR 2  lakhs to INR 2 crore

  • The interest rates are competitive

FlexiLoans offers Amazon seller business loan

FlexiLoans is a lending partner of Amazon and we have integrated our lending platform with Amazon. What that means is that a vendor can directly apply for a loan with FlexiLoans through their Amazon vendor portal and get updates of their loan application in one place.

The benefits that the vendor will get if they apply for a loan are:

  • Reduced turnaround time 

When the vendor applies for a loan on their vendor portal, FlexiLoans will immediately receive the application and the loan process will start that moment itself. This will reduce the time it takes to process the loan application.

  • Error reduction

Due to the integration of FlexiLoans’ platform with Amazon, everything is automated which will reduce the chances of errors due to human intervention.

  • All information on one platform

The vendors can see all updates of their loan application on their Amazon vendor portal itself. 

  • Real-time communication

The vendor will get to know about their loan application status on a real-time basis. Whenever there is a progress in their loan application, it will be updated on their Amazon dashboard immediately.

Need for an Amazon seller business loan

  • Maintaining inventory

In order to maintain a rank as an Amazon vendor, the first approach is having a wide/large range of products to attract customers. The inventory should have all types of products and categories. Our loans can help you to purchase several products for better customer satisfaction.

  • Marketing process

In order to find your target customers, the marketing approach should be unique and smart. Amazon is a huge platform with around 300 million customers.

  • Consolidation of debt

You have to maintain your existing debt so that your financial aids are all on point. With your entire debts in place, you have chances for a greater profit margin.

  • Improvement in cash flow

There are miscellaneous expenses in running a business on a daily basis. When you have a flow of money, then you can monitor all your expenses and this improves the cash flow of your business. From rent to wages, everything can be sorted.

Eligibility criteria

  • The monthly turnover is Rs. 2 lakhs

  • The payout vintage is 6 months

  • The vendor should have a history of being an Amazon vendor for at least 6 months.

How to sell using the Amazon platform

Become an Amazon merchant first and after 6 months you can apply for a business with us. Follow these simple steps:

  • Create a profile on Amazon as a merchant and update all the products and descriptions. Sign up and grow as an Amazon merchant.

  • Listing of products: You can list the products which are already present on the Amazon site or you can try out new products to be listed there.

  • Maintaining inventory: The inventory level should be maintained according to records. This will help to compete with others.

  • Shipping orders: You can always decide between self-shipping and using an Amazon shipment method to ship your goods.

  • Earnings: The fees which Amazon demands are deducted from the profit and the rest of the profit is shared with you.

Documents required for availing an Amazon seller business loan

1. Documents Required                  
Personal KYC
– PAN Card

2. Residential Address Proof (Any One)
– Rent Agreement
– Driving License
– Voter ID
– Ration Card
– Passport

3. Last 6 months Current Account Bank Statement in Net Banking PDF format

4. Business KYC (Any One)

– GST Registration Certificate
– Shops and Establishment Certificate

Terms and features of FlexiLoans Business Loans

  • Loan amount up to Rs. 1 crore

  • The tenure of repayment is upto 36 months

  • The interest rate starts from is 1% per month

  • The entire process is paperless and after uploading of the documents, the process takes only 48 hours. 

  • Loans are 100%  unsecured without any kind of security needed to be given

  • There are no hidden charges which make it best to take loans from us.

Tips to become a successful vendor in Amazon

  • Do proper research: Before starting your selling business on Amazon, you should be completely aware of the market and how it works. When you know its pricing and how it works, you can have a healthy competition with your competitors.

  • Sales and promotion: Discounts can help you to skyrocket your sales and promotion makes your products to be sold fast. Extra revenues are always welcome when you are doing business.

  • Building a brand: There are millions of vendors listed on Amazon. Learn unique ways and stay different from others to build a better brand for you.

  • Reviews are welcomed: Reviews are really essential if you want to expand your business. With reviews, you get to know where you might go wrong and protect yourself from making mistakes.

  • Reviewing your metrics: Always plan a strategy while working out your plans for the business. Prepare sales chart and product reviews. This will help to enhance the numbers in the near future.

  • Marketing of your page: Advertising plays a major role when it comes to selling your stuff. This way you can attract the attention of customers. Reach people through social media, forums, and ads that help grow your business.

  • Fulfillment option provided by Amazon: The tool FBA acts as a springboard in the business of Amazon. It saves so much time while purchasing any product. This is an investment for you promising returns on the long run.

Contact us today if you have 6 months experience as a vendor at Amazon.