Let the Lending Begin: Amazon.Com and Seller Lending

Amazon Lending
We’ve been hearing about it for a while, but it’s in full swing.  Amazon.Com is officially lending money!

Below is a copy of an email received by a current Amazon.Com Seller:

Dear Seller:

Amazon is always looking for ways to help our sellers grow. Your seller performance has prequalified you to become one of the hundreds of sellers that use Amazon Lending to grow their revenue and profits, faster.

What is available?

Up to $335,000 loan available with a one page loan registration
Money can be advanced to your account in as little as 2 days
What’s the cost?

The total interest cost is less than $3 for every $100 you borrow*
No origination fee or pre-payment penalty
Amazon Lending is a fast and easy way to fund your business. To access Amazon Lending on Seller Central, sign in with your Selling on Amazon Primary Account holder user id and password.

*Assumes on-time payments on a four month loan. See loan registration page for loan details, terms, and conditions.

This invitation is subject to eligibility and expires on Jun 13, 2013.
Registration for Amazon Lending is by invitation only.

So there you have it folks – Amazon joins the lending industry!

Thoughts?  Comments?

3 Tips for Entrepreneurs

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I confess, one of my favorite teachers on business and finance is radio personality, Dave Ramsey.  If you’re serious about running your business I’d highly recommend purchasing his book, “EntreLeadership” and subscribing to his FREE “EntreLeadership” podcast.

On the EntreLeadership podcast recently Dave nailed me between the eyes with 3 simple points.  Although I can’t quote it exactly, his 3 main points were something like this:

1.  Stop sitting around and watching the TV.  READ.   Read non-fiction books.  Often.
2.  Exercise.  Take care of your physical body and do the exercise needed to keep your body in tune and the proper release of endorphins and hormones in regulation.  It boosts your creativity and changes your mood.
3.  If you are a Christian, READ your Bible daily.  It’s full of wisdom and instruction.

How do these 3 points resonate with you?  What would you add?

(disclaimer:  affiliate links used)

Etailers: Get Ready for Sales Tax

Featured_taxesOnline biz owners, get ready.  If you haven’t learned the horrors of multi-jurisdiction tax tables and rates you’re about to.

According to a recent article, the US Senate just had an overwhelming vote to support the upcoming “Marketplace Fairness Act” which will require e-commerce merchants to begin collecting sales tax in all states.

So far our tax law has required sales tax collection only in states where the business has a physical presence.  This gets complicated when companies use distributors to dropship products to their customers; however.  Some states are demanding that you pay sales tax to them even if you don’t have a business operating in that state, but use a distributor who does.

The good news?  You probably will be exempt if you have less than $1 million in annual sales.  The bad news?  $1 million in gross sales is a tiny amount for many small-medium marketplace merchants.  Since one of the hallmarks of online merchants in lower prices that also means lower margins.  A company grossing over $1M in sales could easily only net $50K.  This is not enough to pay a tax professional to collect and remit sales tax in every state.

For more info, read the article and express your thoughts here.  How do you feel about being forced to collect and remit sales tax in a state where you don’t have a business?