Amazon Issued $1 Billion in Loans Over the Past 12 Months
Spencer Soper and Selina Wang writing for Bloomberg Technology:
"Amazon.com Inc.’s lending business is accelerating, highlighting one more way the online retailer is making money from e-commerce beyond simply selling products in its web store.
"The company issued $1 billion in loans in the past year to merchants selling on its marketplace. Amazon launched the lending business in 2011 and uses data from more than 2 million merchants to identify those it deems credit worthy...
Spencer and Selina go on to describe how Amazon chooses merchants to offer loans based on their selling histories and how those merchants mostly use those loans to expand their product offering and scale of their offerings on Amazon.
It's interesting to see how Amazon is taking on a traditional banking function to grow their business by enabling the best sellers to expand. It's a virtuous circle.