Amazon To Launch Its Business Loan Program For Small Sellers
BENGALURU: By sensing the future of the E-commerce market in India and other eight countries, fight for the business supremacy among the E-commerce giants has reached the next level. An American E-commerce giant Amazon has announced that, it is going to extend its business loan program out of U.S.A and Japan, reports Times of India.
Head of Amazon Marketplace, Peter Faricy said that the company will introduce ‘Amazon Lending’ the program which offers loans to small sellers, in Canada, China, France, Germany, India, Italy, Spain and the United Kingdom shortly before 2016. ‘Amazon Lending’ is a business loan providing program which was founded in 2012 in U.S.A. the, which was later introduced In Japan.
This coming program will provide short term capital loans to the tradesmen, however the service is available only to those sellers who choose sell their products exclusively in Amazon site. According to Amazon, since 2012 it has offered more than hundreds of millions of dollars and more than half of its customers opting to pay back, yet company refused to provide any data which can prove its statement.
Interest is the main source of income of ‘Amazon Lending’ as it can earn up to forty percent of Amazons site sale nevertheless it offers three to six months loans 1,000 to 600,000 dollars to the sellers to buy the products.