Selling your Product on Amazon

     Most people do not realize the difficulty in selling their products on websites such as Amazon. The average time that you have to wait to receive payment is 74 days. That means if I want to buy a million dollars worth of your product, you will have to float me for that amount of time. 

     With the calculated interest that comes out to  $1,002,000 @ 1% interest rate. While the $2000 will not break the bank, consider losing your $1 million for that amount  of time when you have rent, payroll, overhead, and need to pay suppliers. If this sounds like an easy equation to you, the list of businesses that this has put under is so long it would not fit on this page. Companies need bridge loans and lines of credit. Remember when banks pulled lines of credit in 2008?
     Quite expensive for the average small company to float. This can drive you under or only allow you to expand through their channel extremely slowly. How can you change this? You can't essentially.         You will need to come up with a very good mathematical strategy that most small to mid-sized companies are not capable of. They think selling on these large retail sites is a good thing until they realize the amount of time it takes to get paid. Have a strategy in place that you can monitor and change if you need to. Do not think that once you are finally on Amazon your troubles are over. If you are really tight on money, they cold be just beginning.      Seattle Times Article Here

Pay specific attention to the numbers