Many analyst and experts believe that e-commerce is the future. Export.gov defines e-commerce as “the online transaction of business, featuring linked computer systems of the vendor, host, and buyer. Electronic transactions involve the transfer of ownership or rights to use a good or service. Most people are familiar with business-to-consumer electronic business (B2C). Common illustrations include Amazon.com, llbean.com, CompUSA.com, travelocity.com, and hotels.com.”
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For entrepreneurs and business owners that are just getting started, an option instead of creating their own e-commerce platform is to use Amazon to sell their products and services to customers. For more established companies that are using Amazon as an e-commerce solution, the Seattle-based company is launching Amazon Lending which will provide loans to merchants. Run by an Amazon subsidiary–Amazon Capital Services–the company has already begun directly contacting companies and offering up to $800,000 in credit.
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What Does This Mean for Entrepreneurs & Business Owners?
While every seller will not be qualified and Amazon Lending is certainly not a one-size fits all solution, entrepreneurs and business owners who are working with razor-thin-margins and have a good reputation on the site might be contacted for one of these such credits. This could be a great opportunity for merchants to raise additional capital to sustain and support their businesses. Reports explain that business owners have been offered interest rates as much as 13% and for business owners that have not been able to get funding from a bank this might be the only option.