Post by sinthiya007 on Nov 4, 2024 21:22:03 GMT -7
In the life of any successful Amazon entrepreneur, there comes a time when the business needs to be developed (launching new products, increasing the number of those that are selling successfully), but there are no longer enough of their own funds.
Today we'll talk about Amazon seller financing and try to answer two main questions: is it true that borrowed funds help grow a business and what are the main points to pay attention to when getting financing.
The material was provided by 4B company partners – Amaloan company .
When is it worth attracting “other people’s” money to your Amazon business
If you can attract financing and invest the funds so that the return on these investments exceeds the interest on the loan, this is a great opportunity that you should definitely take advantage of. But you should always remember that money can help a business grow and develop, or it can “kill” it.
Unless you have a bank account with a few thousand on page seo service
dollars in it or another business to temporarily pull cash from, you will need to attract outside or external financing. Attracting outside investment/credit into a business can help you accomplish something that would otherwise be impossible.
In 2017, the Bindle Bottle project raised money on Kickstarter. Now this bottle with a secret is successfully sold on Amazon for $39 per unit.
Key Funding Needs of Amazon Entrepreneurs
Here is a list of typical situations in which an Amazon business may need additional financial injections:
Launch of a new product. Expanding the product line, assortment, or launching a completely new product requires additional free funds, which sellers do not always have;
Purchasing a large batch of goods. For example, preparation for the New Year holidays, the season of active sales (if the goods are seasonal). Often, preparation for Q4, for example, begins already at the end of the 2nd quarter, and sellers cannot freeze large enough amounts to ensure the production and delivery of 2-3 batches of goods at once.
Business expansion. Launching a business in other countries or entering new platforms – Shopify, Etsy, etc. also requires additional investment from business owners, especially when entering other markets becomes successful.
To reduce cash gaps and avoid going out of stock (emptying the warehouse during the active sales phase). A cash gap is a temporary shortage of funds needed to finance the next expenses that have arisen, i.e. the product has not yet been sold, but it is already necessary to purchase a new one.
To reduce shipping costs. It is often more cost-effective to manufacture the product in advance and pay for shipping by sea using borrowed funds than to receive payment from Amazon and ship the product by expensive air transport in an emergency mode so as not to end up out of stock.
Ways to Attract Funding for Amazon Business
So where can an Amazon business get money? Here are some ideas:
Crowdfunding platforms
Examples of such platforms are Kickstarter, IndieGoGo, etc. Most often, this is raising funds not at a certain percentage, but as an advance payment for the product you plan to launch. This is a fairly simple, but lengthy process of raising funds, and there is no guarantee that the funds will be received at all.
Today we'll talk about Amazon seller financing and try to answer two main questions: is it true that borrowed funds help grow a business and what are the main points to pay attention to when getting financing.
The material was provided by 4B company partners – Amaloan company .
When is it worth attracting “other people’s” money to your Amazon business
If you can attract financing and invest the funds so that the return on these investments exceeds the interest on the loan, this is a great opportunity that you should definitely take advantage of. But you should always remember that money can help a business grow and develop, or it can “kill” it.
Unless you have a bank account with a few thousand on page seo service
dollars in it or another business to temporarily pull cash from, you will need to attract outside or external financing. Attracting outside investment/credit into a business can help you accomplish something that would otherwise be impossible.
In 2017, the Bindle Bottle project raised money on Kickstarter. Now this bottle with a secret is successfully sold on Amazon for $39 per unit.
Key Funding Needs of Amazon Entrepreneurs
Here is a list of typical situations in which an Amazon business may need additional financial injections:
Launch of a new product. Expanding the product line, assortment, or launching a completely new product requires additional free funds, which sellers do not always have;
Purchasing a large batch of goods. For example, preparation for the New Year holidays, the season of active sales (if the goods are seasonal). Often, preparation for Q4, for example, begins already at the end of the 2nd quarter, and sellers cannot freeze large enough amounts to ensure the production and delivery of 2-3 batches of goods at once.
Business expansion. Launching a business in other countries or entering new platforms – Shopify, Etsy, etc. also requires additional investment from business owners, especially when entering other markets becomes successful.
To reduce cash gaps and avoid going out of stock (emptying the warehouse during the active sales phase). A cash gap is a temporary shortage of funds needed to finance the next expenses that have arisen, i.e. the product has not yet been sold, but it is already necessary to purchase a new one.
To reduce shipping costs. It is often more cost-effective to manufacture the product in advance and pay for shipping by sea using borrowed funds than to receive payment from Amazon and ship the product by expensive air transport in an emergency mode so as not to end up out of stock.
Ways to Attract Funding for Amazon Business
So where can an Amazon business get money? Here are some ideas:
Crowdfunding platforms
Examples of such platforms are Kickstarter, IndieGoGo, etc. Most often, this is raising funds not at a certain percentage, but as an advance payment for the product you plan to launch. This is a fairly simple, but lengthy process of raising funds, and there is no guarantee that the funds will be received at all.