Amazon sellers accounted for more than 60% of items sold through the shopping site in the fourth quarter. He has one less option to fund his business. Nathan Stark — Getty Images
More than a decade after it first provided loans to sellers who sell goods through online marketplaces, Amazon Lending is closing its The company plans to stop underwriting its own loans. luck.
Amazon spokesperson Deniz Sonmez confirmed the news in an email. luck.
“We regularly evaluate our programs and services and have made the decision to discontinue Amazon-underwritten term loans for Amazon sellers in the United States and United Kingdom,” a spokesperson said in a statement. “This change will be effective from March 6, 2024.”
Sonmez was not immediately available to comment on the regions where Amazon would continue to underwrite loans.
Amazon Lending will continue to service existing loans for sellers that it has already underwritten and loans recently provided to sellers. However, no new financing proposals will be made.
The spokesperson added that Amazon will continue to sell financing solutions offered by other “trusted third-party providers with deep experience in providing financing programs and financing programs.”
Last year, Business Insider reported that some economists working for Amazon expressed concerns about the level of exposure the program would expose the company to default.
According to documents seen by Business Insider, “increased uncertainty in business repayment ability” on the part of sellers necessitates “more sophisticated testing of on-balance sheet credit/financing products.”
But at the time, an Amazon spokesperson seemed to dismiss internal concerns, saying, “The document in question does not reflect the company's position on the economy or its future direction.” …This document only reflects the views of some economists. ”
Probably not.
Amazon initially largely withdrew loan offers early in the pandemic, but eventually reversed course.
Amazon began offering thousands of dollars in loans to some U.S.-based sellers in 2011, providing faster funding than regular banks and automatically disbursing repayments from sellers' Amazon accounts. Subtract it. Independent sellers are the invisible secret behind Amazon Marketplace's vast selection, and in the fourth quarter of 2023, for the first time ever, he will account for more than 60% of all products sold on Amazon accounted for.
Amazon made $140 billion in revenue last year from the fees it charges sellers for everything from listing products to storing and shipping orders to financing. Last week, Fortune magazine reported that many of Amazon's top sellers were furious over Amazon's recently announced new pricing structure that requires sellers to start using additional Amazon warehouse services or pay additional fees. It was reported that
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