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Amazon Offers Loans to Online Sellers

Loans are for Amazon marketplace merchants, by invitation only.

Companies that provide small-business loans to online sellers, like Kabbage and iwoca, may have a new competitor, as Amazon is getting into the lending business.

The new program, called Amazon Lending, is accessible by invitation only. Amazon is telling customers about the lending program through emails to “pre-qualified” sellers, according to news reports.

ChannelAdvisor, an e-commerce solutions company for larger online sellers, posted the email Amazon sent to customers on its blog on Thursday. The message notes that pre-qualified Amazon sellers can log in to their accounts with their Selling on Amazon Primary Account IDs and passwords to request a loan. If they are approved, Amazon will make the funds available within five business days.

Amazon will deduct monthly payments from sellers’ accounts automatically, the email states. It also notes that the offer for the loan expires 30 days after the email was received.

According to news reports, interest rates for the loans can be up to 13 percent.

Scott Wingo, ChannelAdvisor’s CEO, says Amazon is offering some online sellers loans of up to $800,000. Amazon officials have not said what makes sellers pre-qualified.

Amazon did not respond to press inquiries about its new program by press time.

About the author

Olga Munoz
Olga Munoz is editor of TheOnlineSeller.com. In addition to writing news and feature articles about e-commerce, selling trends, online marketing and other topics of interest to online sellers, Olga manages the site's social media efforts. A journalism graduate of Chico State, Olga says her favorite part of being a journalist is learning interesting facts that help put stories into perspective, attending industry events and meeting interesting people "that leave you smiling, even in tough situations." Opinions expressed here may not be shared by The Online Seller and/or its principals.

  • Loan terms I got were originally 3.9%-4.9% for a 4 and 6 month loan. I checked it again a couple weeks later and it was just 0.9%. For a $14k 6-month loan my total interest will be under $40 (jumped on that!)

    • jay

      are you a big seller on amazon? i wonder what kind of volume people have to sell to get an invite.



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