Going Where Amazon Lending Can’t For Our Ecommerce Client

Businesses that opt to harness the power of Amazon for selling their products can find enormous success, but also face significant challenges. While Amazon’s marketplace may be one of the most popular ecommerce platforms on the planet, it is rife with competitors who may be outbidding you and snatching your revenue by pouring more finance into their advertisements. 

Amazon itself offers a lending scheme aimed at helping businesses sell on their channels. This scheme has variable terms that can be very different depending on your business and even on external factors such as Amazon’s own situation. For an ecommerce retailer focused on growth, these limitations and uncertainty can make it hard to plan for sustainable revenue uplift. 

When an Amazon seller approached Rangewell, they’d grown frustrated by the variability of the lending platform. Where one day they’d be offered large finance packages, the next the limit seemed cut without any explanation. The seller in question had watched his friend’s Amazon Lending limit drop down by 80% and wanted to avoid similar issues. 

After the first no-obligation chat with our team, the client decided to continue with Amazon’s finance option. Shortly after, however, they hit a critical issue: Amazon cut the client’s lending limit on a Friday evening when the client needed to make a crucial stock purchase from China on the following Monday. Compounding this urgency was the fact that Chinese New Year was approaching and the client needed to complete this purchase before their supplier went on a break. 

With poor communication from Amazon and no sense of being supported in this urgent situation, the seller returned to Rangewell’s broker team with a challenge: could we secure an ecommerce finance loan in the nick of time that would let the client buy the stock they needed? 

Why we were able to help

Rangewell’s team are always available and willing to go the extra mile. Though it was a weekend when the client contacted us and many UK lenders were not in the office, we knew we could help secure the funding in the right window of time for the client to make the crucial stock purchase they needed. 

To accomplish that, we spoke to a US-based lender whose office was open when UK offices were not. This lender recognised the value of Amazon-based selling businesses and was able to offer finance terms based on their current performance and projections from the new stock purchase. 

For the client, who was focused solely on securing the finance in time, Rangewell took care of all of the hard work and essentially delivered the right option for their goals without any additional complications. Once the client had reviewed the offer and accepted it, the money was paid into their account by Monday to allow them to make the all-important stock purchase from their supplier. 

About ecommerce finance versus Amazon Lending

While Amazon Lending can be beneficial for many sellers, it is also restrictive. With terms dictated solely by Amazon and little explanation given, many clients instead turn to more traditional finance options from established lenders. However, these loans are often given on a personal basis and it is usually better to opt for a corporate guarantee from a lender familiar enough with ecommerce to offer one. 

Finding these specialist ecommerce lenders is a challenge in itself - one that Rangewell takes care of for you. Once you contact our team, we will shortlist lenders based on your business, structure and requirements. We’ll help you prepare your application and offer advice around terms and rates - but can also offer further insight into the specifics of ecommerce funding thanks to our deep knowledge in the sector. 

If you’d like to step outside of Amazon Lending and experience a more flexible finance solution that can offer the sum you need at a rate that suits your business and capital position, get in touch with Rangewell’s ecommerce finance broker team today.