Start-Up Financing For Amazon Sellers
Updated: Oct 28, 2022
If you're looking into start-up financing for Amazon Sellers, there are limited options that will mostly rely on the Amazon Sellers' personal connections, skills, and relationships. There are no banks or professional investors providing start-up financing for Amazon Sellers to launch a new Amazon business leaving would-be-sellers to rely on their personal resources.
Amazon Sellers have launched retail arbitrage and wholesale businesses with as little as a couple of hundred dollars and private label businesses with $5k-$20k. If you don't have any liquid cash to start your Amazon business, you still have some options including;
Often referred to (jokingly) as "blood money", investment from family and friends is a popular way for cash-strapped entrepreneurs to get start-up capital. Usually, these deals are structured as some sort of equity partnership or a simple loan. For entrepreneurs tight on cash but rich in relationships, this is the easiest and most popular route to get funding to start selling on Amazon. If following this path, know that you will probably be in for a lot of business questions over the holidays!
Many Amazon Sellers start their Amazon business with credit cards and if you have a decent credit score this could be a good option. When using your personal credit cards to start an Amazon business, it is very important that you start small, invest in education, and gain confidence in your ability to generate sales on Amazon. Using credit cards to start an Amazon business can be very risky if you don't know exactly what you're doing.
Entrepreneurs with strong marketing skills and a reasonable budget might want to explore crowdfunding on platforms like Kickstarter as a path to funding their new business. While technically anyone can launch a crowdfunding campaign, running a successful campaign can become a full-time job in itself so this method is really only recommended for those with a strong marketing background.
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