Amazon jumpstarted the e-commerce industry after it was launched in 1994. Since then, several other websites have been launched to emulate Amazon’s ideas, while the digital seller continues to maintain its popularity.
In India, the company began its operation in 2012. According to reports, the gross merchandise volume of Amazon India’s operations is expected to hit $70 billion by 2027.
Indian sellers have also been quick to adapt to this online marketplace. As per a 2019 report, the ecommerce business crossed 5 lakh sellers in the country, which mainly comprises SMEs and artisans.
The availability of hassle-free online seller loans also eases a business’s ability to list products on such ecommerce platforms. Gold loan is a typical example of credit advances one can easily secure to kick-start online selling via Amazon.
Available without any end-use restriction, the Gold Loan credit advance makes for a suitable financing option to fund your e-commerce selling. Here are the details you would need to start selling your products at Amazon.
Check them out!
How Can You Start Selling Products on Amazon?
You can conveniently utilise Amazon’s extensive network to widen your business’s reach. Here is a complete breakdown of the process and expenses related to selling on this popular ecommerce platform.
Step 1: Registering seller account
Businesses can start their enlistment process by completing a simple registration process. PAN or GST number is necessary for this step, along with information regarding an active bank account.
Step 2: Upload product listings
A potential Amazon India seller can list his/her products using the ecommerce company’s internal listing tools or use the Seller App to do the same.
After completing steps 1 and 2, buyers can now purchase these products on Amazon. The next step involves ensuring a speedy delivery of products to customers.
Step 3: Choose ‘Easy Ship’ or ‘Fulfilment by Amazon’ options
In Fulfilment by Amazon option, the ecommerce enterprise will pick up, store and deliver sold items to customers. It is the most hassle-free option when it comes to managing inventory and logistics delivery.
How Much Does It Cost to Sell Products on Amazon?
A common question for every prospective Amazon seller is the fees and charges involved with such sales. For smaller businesses and artisans, managing the considerable fee can often become problematic. One can thus avail Amazon seller business loans for immediate financial backing.
Better yet, financing alternatives like gold loans are easy to avail with instant disbursal facilities. Before considering better financing alternative, however, here is a quick look at some expenses that Amazon sellers need to meet.
- Referral fees
It refers to the fees that Amazon charges based on the product or item that a seller is listing. It is generally represented as a percentage of the selling price for a specific product.
- Fixed closing fees
Another fee that takes into account the selling price of your product, along with the shipping option you pick is the fixed closing fee. Sellers choosing Fulfilment by Amazon option generally need to bear higher expenses in this segment.
Those who choose the Easy Ship option, on the other hand, need to bear limited expenses. The fee in such a case is determined by taking into account the weight (in grams) of a product along with its delivery location.
Financing Your Online Selling Initiative with a Gold Loan
With the costs mentioned above, it is evident that sellers need to invest substantially in taking advantage of Amazon’s superior delivery network. In case funding turns out to be a problem, entrepreneurs can look for hassle-free sources of financing. Gold loans from Rupeek Fintech Private Limited are a good option to deal with such costs.
These online seller loans are secured against any gold ornament or jewellery you own. By pledging your gold, you can acquire substantial loan quantum, which, in turn, will help your products reach Amazon’s online marketplace. Listed below are some reasons why such a loan is ideal for expansion of a business through the online platform.
- High LTV against pledged assets
With gold loans, consumers have the opportunity to use the equity value in their gold ornaments to raise finance instead of keeping the asset idle. Moreover, with a high loan-to-value ratio, you are able to receive substantial loan quantum against the value of the gold you pledge as security.
- Simplified documentation process
Borrowers can avail such loans without undergoing a lengthy documentation process. Essentially, one can apply for such a loan by simply providing their KYC documents, including PAN and Aadhaar cards, along with a cancelled cheque or an ECS mandate. Consumers do not need to fill out long forms or endure a long verification procedure.
Also, approval time is exceptionally quick for these online seller loans. A borrower may receive the loan principal within a few hours of applying.
- Flexible repayment terms
Rupeek consumers can benefit from increased flexibility when it comes to the repayment of loans. The tenor for such credit can range between six months and a year.
Within this period, a borrower can choose to pay regular EMIs, or he/she can avail a bullet repayment facility. Under the latter, borrowers can repay the entire cost of the loan, including principal and interest accrued, at the tenor’s end.
These flexi loans Amazon seller options are typically beneficial for new businesses, allowing them to utilise credit even if they lack immediate funds to service their gold loan EMIs.
- Source of funding for women entrepreneurs
This line of credit is suitable for women entrepreneurs willing to earn from home. Whether you are in the handicrafts business or into selling packaged food items, gold loans can be the gateway to easy fulfilment of your business’s financing needs.
For stay-at-home mothers and wives, unsecured loans from banks are rarely an option. However, these women can easily pledge some of their gold jewellery to kick-start their ventures and sell products on Amazon with ease.
- Financing your business expansion
As a brick and mortar store or outlet, your sales are limited to only customers in the nearby localities. However, listing products on Amazon provides exposure to a nationwide marketplace.
Availability of gold loan can simplify reaching out to customers from places far and wide. It effectively helps multiply the revenue of an existing business.
The growing popularity of online seller loans like gold loans has only simplified this change in modus operandi from physical to virtual stores. With Rupeek Fintech Private Limited, the safety of gold assets pledged is also not a concern with 24×7 security.
So, secure your advance, assess the products to be listed and start with Amazon registration as a first step to effective online selling.