A Seller’s Guide To Funding Your Amazon Business Expansion

For most sellers, getting funding for Amazon business growth has always been tricky. But today’s market is full of expert providers who understand the Amazon ecosphere, making it easier than ever for sellers to get the funds they need.

It’s a new era with new possibilities. Here’s what Amazon sellers need to know.

A New Age of Capital Availability

Any business can benefit from capital fluidity that helps them cover dynamic events like dealing with an unexpected sales boom or launching a new product. And the same has always been true for Amazon businesses.

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Due to Amazon’s unique selling environment, however, it’s historically been quite difficult for sellers to engage with — and get results from — standard sources for capital funding.

Today, it’s a different story.

Many resources now exist that help sellers fully understand the ins and outs of selling on Amazon — and most are custom-built to serve them.

With these resources in hand, it’s far easier for today’s sellers to secure capital for things like:

• Unexpected sales booms.
• Inventory emergencies.
• Hiring.
• Unexpected slow periods.
• Planned expansion.
• New product launches.

When To Consider Seeking Capital

Some entrepreneurs choose the bootstrap approach to funding. They reinvest profits back into the business to pay for their expansion. It’s a valid strategy that keeps debt balance low or even nonexistent.

But when you’re facing an unexpected downturn or massive boom in sales, you’ll want the capital to get through it unscathed. A capital infusion from an outside source helps you cover the upfront costs, allowing you to pursue profitable growth.

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Depending on the situation, you might also need a line of credit, access to cash on demand via prepaid solutions, or payments received in multiple currencies. Solutions exist today to help Amazon sellers with these — and many other — needs.

Types of Funding for Amazon Growth

If you’ve decided your business could use some outside funding, you’ve got a few options to consider, since capital availability for Amazon sellers has exploded over the last several years. 

Accessing the right kind of funding means finding the source that best meets your particular need. Most types of funding tend to fall into the following basic offerings:

Working Capital

Need funds to grow your business? Want to invest in a new product line? Need more equipment? Working capital is essentially cash that can help support business expansion efforts like these.

Success-Based Capital

This method allows you to get funding for your business and pay it back when you make profit. In most cases, sellers will pay only a percent of their profits until their funding total is paid off.

Revenue-Based Capital

With revenue-based capital, the more you make, the faster you pay off the debt. You’ll get funding now and then pay it back over time based on your revenue volumes.

Daily Advance

If you need to receive your earnings now, a daily advance is the right option for you. With this type of funding, you can get paid a set amount today based on your previous day’s sales, allowing you to take control of your cash flow.

Other smaller-scale funding offerings exist, as well. Digital wallets, for example, allow you to save money on currency conversion and payment fees, while receiving your international sales revenue directly in your currency. Prepaid business cards give you all the convenience of a business credit card with added expense management.

We truly are in a golden age of capital availability for Amazon sellers.