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Amazon sellers face unique challenges due to the COVID-19 pandemic. SellersFunding, an e-commerce lender, is helping them meet the demands of the changing market during this difficult time. Continue reading
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New York, NY, May 01, 2020 /prREACH/ -- With the COVID-19 pandemic affecting every corner of the world and every business sector, there has been some confusion among consumers and sellers about the decrease in Amazon's ability to allow new shipments to be sent to Amazon warehouses on most products. Many sellers have contemplated that it is due to a slow-down in Amazon's system, but many experts believe that this is not the case.
More information can be found at http://www.sellersfunding.com/
"In February, Amazon unexpectedly halted most products from being shipped in to the Amazon Fulfillment Warehouses," says e-commerce consultant, Tim Jordan. "Many third-party sellers believed that the gating of inbound shipments was a result of Amazon slowing things down, but in reality, it was a reaction to Amazon's inability to keep up!"
Jordan explains in detail how the closing of physical stores, the necessity to shop from home under "social distancing" measures, and even the boredom of staying at home have increased the demand for e-commerce shopping. This resulted in a need to re-prioritize efforts in the Amazon warehousing and distribution system. But now, many Amazon sellers are facing a scenario where they have an immediate need to ship inventory to Amazon in unprecedented volume but are concluding a period of reduced revenue due to out-of-stock situations. And as a result, many e-commerce sellers are now in a position where they can't afford to provide enough inventory fast enough.
In speaking with Ricardo Pero, the CEO of SellersFunding, a lending service that provides working capital to e-commerce sellers across multiple platforms and marketplaces, a bright light at the end of this tumultuous tunnel can be seen.
"Right now, we are experiencing a record high in lending requests from e-commerce sellers. This is due to increased product demand, following a scenario where supply chains have been disrupted for more than two months in many cases." Pero continues by stating that things are looking bright for sellers: "All of our analytics show a surprisingly significant increase in sales across sellers on multiple platforms, and industry experts believe that the trend of increased e-commerce demand will not slow down. "
SellersFunding seems to be in a particularly favorable situation, as many other lending options like Kabbage, Payoneer, and even Amazon's internal lending solution for its sellers have all been shut down due to a variety of factors. Industry expert Tim Jordan, describes how the shutdown of many other lending providers affected his business.
"Until recently, I was utilizing a credit line by Kabbage, and without warning, it was discontinued despite my good standing with them," says Jordan. "I speculate that Kabbage is not offering any more capital due to its risky exposure to the retail and food service industries. At a time when there has never been a bigger demand to sell products, I am thankful for companies such as SellersFunding, who are still not only offering working capital solutions for sellers but also launching new initiatives and new products in the process. As e-commerce continues to grow more and more, it is great to see companies stepping up to support sellers in ways never seen before."
As the pandemic continues to affect global buying habits, many business models have been exposed or completely upended altogether. Luckily, e-commerce sellers seem to be in a particularly stable position compared to many of their other brick-and-mortar counterparts.
For more information on SellersFunding and its lending options for e-commerce sellers, please visit the company's official website.
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