Investment and financing for Ukrainian sellers on Amazon

There are many problems that businesses may need additional financial injections to solve. We decided to analyse the sources that will help you finance your Amazon sales if you don’t have enough of your own money.

Amazon Lending programme

Did you know that you can get a loan directly from Amazon? Investments in new product development, payment of advertising and marketing costs, or funds to increase inventory – the marketplace offers various financing programme options.

Features: You can apply through Seller Central. The review process is fairly quick, often without the need to prove your solvency or find a guarantor. The available financing programmes depend on the region of residence and the seller’s account turnover. Term and interest-free loans, credit lines, and merchant cash advances are available to US citizens.
You can find out more details and apply on the corresponding page.

Pros: fast approval, flexibility of financing options (you can choose several products), online calculator for calculating interest rates and payments.

Cons: Amazon does not disclose the criteria by which applications are approved. Therefore, the probability of rejection is quite high.

Crowdfunding

With the development of the Internet, a new source of funding has become available – crowdfunding. This is the process of raising funds from many people through online platforms. Crowdfunding can be an effective way to raise funds for business development without the need to pay them back later.

Features: to accumulate funds through such platforms, you will first have to sell the idea to their users. This is quite difficult, especially if you have an average product. For effective fundraising, you need something unique that can interest a wide audience. The best cases come from products that solve certain social or environmental problems, as well as apps that make users’ lives easier.

Pros: Crowdfunding is a great tool for bringing innovative products to market and testing business ideas without investment..

Cons: Fundraising usually takes 2-3 months. Therefore, if you need money for an urgent purchase on the eve of key events on Amazon, for example, this is definitely not your option.

Government grants and subsidies

Many countries provide grants and subsidies to support small and medium-sized enterprises. Their aim is to stimulate economic development and innovation. Detailed information on such programmes can be found on the official websites of government agencies.

Loans from banks

To attract investment, businesses can apply to a bank for a loan. You will be able to invest the received amount of funds in Amazon at your own discretion (i.e. without being tied to a specific business goal). However, it is worth remembering that the bank requires collateral and a guarantee of repayment, and in case of late payment, this may cause problems for your business.

Venture capital investment

Venture capital investment is a source of funding that is suitable for start-ups and companies operating in innovative fields. Investors (venture capital funds) invest money for a stake in a company. This can be a profitable way to raise money and secure a contribution to Amazon, especially if your business promises high growth and profitability.

Private investors and partnerships

Private investors can provide funds for a fixed percentage of profits or on other mutually beneficial terms. This method can be especially useful if you are looking for not only financial support but also experience and advice from experienced entrepreneurs.

You can also finance on Amazon by sharing costs with partners on the terms of transferring a share in the company.

Conclusion: investing in Amazon is easier than it might seem at first glance

The choice of a source of funding for business development depends on many factors, including the size and type of your company, development goals, risks, and investor expectations. It is important to carefully consider each of these sources and choose the one that best suits your needs and capabilities. Combining different sources of investment can be a successful strategy for financing your business development.

Nexus can offer you its services in finding business partners or become one. Contact us in a convenient way to discuss the details of possible cooperation.