Digital lending marketplace BitX Funding, which matches business owners and non-bank lenders, is aiming to help Amazon third-party (3P) sellers grow. The company has brought in more than $50 million in financing for small companies throughout the country since 2013 by “breaking down the barriers of traditional banking,” according to an announcement.
BitX Funding President Todd Rowe said in the announcement, “BitX Funding is committed to helping Amazon power sellers by providing the funding needed to take their eCommerce business to the next level.”
Rowe continued, “Amazon sellers start off with an Amazon Working Capital Loan, but over time they hit a wall as their growth is capped at $1 million in financing. The business owner may borrow from friends or family or obtain merchant cash advances, which come at a price.”
The firm said Fulfill by Amazon (FBA) sellers have a “tremendous opportunity” to expand with the online economy.
Citing Planet Retail RNG, BitX Funding noted that Amazon 3P sellers comprise more than half of Amazon’s sales, and it is forecasted that marketplace sellers will account for $130 billion of the company’s total gross merchandise value by 2022. However, the company pointed out that financing is “not easily supported through Amazon’s seller central, and the business lending environment is complex for Amazon FBA sellers looking to level-up.”
Rowe noted, “Large banks and other lenders don’t recognize the assets of 3P sellers, as their inventories sit with Amazon. Our lenders see it differently, so we recommend online sellers put in an application with BitX Funding to access funds for unlimited growth.”
In August 2019, news surfaced that Amazon was on track to invest upwards of $15 billion in new tools to help small and medium-sized businesses achieve growth and success. Some of the different programs Amazon invests in to help SMBs include Amazon Handmade, Amazon Storefronts, Amazon Business, Amazon Launchpad, Amazon Global Selling, Fulfillment by Amazon, Amazon Lending and Merch by Amazon.
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