Amazon Inventory Financing by BitX Funding | Are You The Right Fit?
Nowadays, it seems like everyone is trying to sell something on Amazon. Some people make it look easy with success after success, but that isn’t always the case. If you’re pulling funds from your savings, that’s about as effective as hitchhiking across the United States with no destination. At some point, you’re going to reach an impasse. Entrepreneurs are more likely to succeed when they create a plan that involves securing a loan.
Before you make any rash decisions, there are a few things you need to ask yourself when considering Amazon inventory financing.
- Do you have any experience selling?
- Do you have an idea what you want to sell?
- Are you competitive in nature?
- And are you good with finances?
If you can answer yes to all of these questions, then you’re on the right track. Let’s break these questions down a little further.
Selling as a Profession
Amazon had one of their biggest Prime Days in 2020. Want to know who drove most of their sales? Third-party sellers.
Third-Party sellers can be individuals or entire companies. They research what the top selling items are on Amazon in order to fully capitalize on people’s spending habits. For example: beauty, tech, books, and healthcare products are all viable sales routes.
If this sounds lucrative, that’s because it can be. 85% of Amazon sellers are profitable. It comes down to how much you are willing to sacrifice in order to fully dedicate yourself to this business. Do you want to reach for the stars, or is this simply a side hustle? Does the pandemonium of holiday season scare you? Remember, this is basically like running a business. Though you might have more wiggle room, the same stressors apply.
To reduce some of this stress, you’ll probably want to sign up for Fulfillment-By-Amazon (FBA), which makes it so that Amazon handles all of your returns, shipping, and storage.
The #1 most sold items on Amazon are usually Amazon’s own electronics. What does that mean for you?
When you think about what you want to sell categorically, it becomes a lot easier to envision turning a profit. Egg cookers, Crocs, Dog pools? “I saw a really smart entrepreneur on TikTok the other day, and he went to Home Depot to buy all the heat lamps for patios. You’ll see Amazon resellers running around buying products ultra-cheap, cornering the market and this group is very prevalent on the marketplace,” says Todd Rowe, president of BitX Funding.
It works, too. If you do your research for discounts on several products and sell them at a higher price, you can be successful at this game. Think of yourself an appendage to Amazon. Amazon are the most well-equipped to sell their own products because being sold from Amazon=complete and utter trust. You’re part of their family now.
If you are creating a product from scratch that is in high demand, this becomes an even bigger challenge because you need funding to build your product and distribute. Is what you are selling complete? Or are there a few screws loose? You might rep your grandma’s scarves, but people aren’t going to care. What are products that are unique and that stand out? (Keep in mind: handmade selling can prove difficult because you’re competing with a plethora of brand-name companies.)
The Importance of Rank
Amazon uses two different systems: a Best Sellers Rank (BSR) and organic ranking. The BSR is determined by how one product compares to others in the same category. There is an equilibrium reached through overall sales vs hourly sales, so lapses in hourly sales won’t drop the seller’s ranking too harshly if at all.
Organic ranking is simply SEO optimization. You may also choose to pay for a more prevalent spot in the same way that people compete on Google for traffic. Though, you still have to be a respectable seller. It doesn’t automatically guarantee you a pass, and the reviews will reflect that.
Are You Good with Finances?
Hopefully, if you are considering Amazon inventory financing, you’ll answer yes. Even if that’s the case, there’s a good chance you’re going to need some help. That is where applying for a loan through BitX Funding would take you to the next level.
Unfortunately, banks are leery about giving out loans to people who aren’t opening up a brick-and-mortar store. Amazon sellers are typically left out of the discussions because they’re seeking loans that are significantly more flexible, smaller, or even bigger.
Amazon’s official lending service can be exclusive as well. They offer you, and not the other way around. You have a good sales history in order to even be considered for the program. Try as you might, Amazon may never reach out to you.
To cut away some of the red tape, a more feasible option would be to look into alternative business loans through a Fintech. There are choices such as merchant cash advances, small business loans, and credit cards.
“BitX Funding can take the entrepreneur and get them up and running with startup liquidity of up to $400K. We can take a company that is successful but has less than $1 million in inventory and provide them more funding. For companies that are well established with $1 million plus in inventory we can take them to higher highs,” says Todd Rowe.
Secure Amazon Inventory Financing
If you are an entrepreneur looking for a way to grow your business, selling on Amazon might be the perfect solution. It can provide both short-term and long-term opportunities that will allow you to make money while also giving customers access to all of their favorite products. While it may seem daunting at first glance, there are ways around this challenge. Applying for a loan will make you a more responsible seller and get you ahead of the game. So why wait? Do you have what it takes to utilize Amazon inventory financing for your business?