Amazon recently launched the company’s new lending service in China. The program titled Lending Referral Program is slated to connect sellers to a lending entity within China.
This breaking news follows Amazon’s decision to close its marketplace in the country, as announced last April 2019. According to CNBC, the marketplace business is being shut down in the country, struggling to compete against e-commerce giants in the industry such as Alibaba’s Taobao and JD.
About the Lending Referral Program
Despite the challenges faced by the company in the country – fighting against e-commerce giants – Amazon shows that the opening of the Lending Referral Program could visibly improve the seller community in China. Not to mention, it will improve the company’s reach.
CNBC states that the program will be made available to dealers and merchants who are already partners with Amazon through the website. Through this new program, the company will connect sellers with local lenders in China. This allows buyers and sellers to buy much-needed inventory at a more affordable price and expand their business, all while fostering a stronger work relationship.
While the new platform may appear similar to its previous market operations in the country, Amazon declares that the platform will be geared towards pre-qualified sellers who are looking to grow their business with the help of Amazon. By extension, local Chinese lenders will give sellers loans and offers that can help achieve growth and development.
CNBC reports that the platform was created to provide interested applicants and sellers to get loans through a simpler and more efficient process.
Importance of the Program
The new platform is deemed important primarily because CNBC states that it could exponentially boost the company’s growth. Apart from its China lending service, the company reportedly also provides loans to suppliers living in India, the United Kingdom, and the United States.
