One thing that we have seen in the e-commerce industry is that the cash flow involved in this business is the most important factor. The cash flow involved in an e-commerce business is involved in every step of the way. For example, we have the very basics of e-commerce which are the products and for that, you need to have an investment. Apart from that, there are logistics cost involved in this business. For all this, we need to have a minimum investment and people take credit for running their e-commerce business.
To make things simpler, Amazon is reportedly in talks with one of the biggest banks in the US which is Goldman Sachs. As per the report from Cnet, Amazon is planning to offer loans for its merchants and this will be in co-operation with Goldman Sachs. Now, if this report is true than Goldman will have a second major signing in less than a year since Apple also released its Apple Card which is just like a normal credit card offered by Goldman Sachs but with tech support by Apple.
On Amazon’s platform, Goldman Sachs might offer small business loans for its merchants if these plans work out well. This means that if you are a merchant, you will no longer have to go to the bank for your loan approval and the process will get simplified for the Amazon merchants too.
While Amazon and Goldman Sachs have not revealed anything about their loan service, they say that lending is “part of the services, tools, programs and infrastructure we provide to our selling partners, mostly small and medium-sized businesses, who account for more than half of everything sold in Amazon’s stores.” Also, it is being said that the business loans will be provided on an existing platform from Goldman Sachs.