Amazon launches lending network for sellers
Amazon has launched al ending network connecting lenders and sellers, who will be able to avail of loans at competitive rates within 24 hours. The Amazon lending programme will offer loans, including term and over draft loans, between ~200,000 and ~50 million, depending on the requirement of the seller through an online application process. SAMREEN AHMAD writes
In another India-first initiative, Amazon has launched a network to connect lenders and sellers, where the latter will be able to avail of loans at competitive rates in 24 hours.
The Amazon Lending programme will offer loans, including term and overdraft loans, between ~200,000 and ~5 crore, through online application.
The e-commerce giant has brought on board six lenders — Aditya Birla Finance, Bank of Baroda, Capital First, Capital Float, Flexiloans and YES Bank. “Our sellers come from different parts of the country with different needs. Lack of working capital is one of the main reasons that stops them from selling online, and we want to remove that obstacle ,” according to Gopal Pillai, general manager and director, seller services, Amazon India.
The seller needs to have a business history of four months on the Amazon platform to avail of the loan. “We have a proven algorithm which predicts the seller's capability to repay based on their historical performance,” Pillai added.
Taking a cue from Amazon Seller Central and Brand Central, the firm has come up with a separate portal, Lenders Central, on which lenders can manage their business in a more streamlined manner, including tracking the repayment schedule, application status and the amount locked in.
The Amazon lending programme was started in 2016 with a single lender. However, with multiple lenders on board, interest rates get competitive for sellers who can pick and collaborate with lenders according to their needs.
Locked in an intense battle with homegrown e-commerce major Flipkart, Amazon has come up with several Indian first initiatives to expand the network of its sellers, which has grown from 100 in 2013 to over 340,000 today.
The US retail giant expanded its global selling programme earlier this year in India, by enabling local sellers to tap business clients in markets such as the US, Europe and Japan.