How Amazon Made Our Business Profitable and Credit Free

In the past few years of profitable and successful selling on Amazon we can safely say that Amazon has played a major role in making us a credit free and profitable company, which was earlier on the edge of getting dissolved due to heavy debt.

I would like to elaborate on some of the major reasons that led to this conversion and how Amazon was pivotal in driving the same:

a) Timely Payment leading to sufficient working capital

We being a clothing brand that manufacturers the products we sell were forced to sell our goods on long term credit in the offline market because of detrimental market policies. This would lead to large amounts of funds being blocked for a longer time-frame forcing us to face various challenges in running our business. However since the day we started our online journey and joined Amazon, our business saw a great boost owing to the constant cash flow which was a result of Amazon’s fast payment cycle and zero-credit policy. We also saw our products receiving more and more orders that led to increased profits and timely cash payments resulting in a successful outcome for our business.

b) Benefits on selling on Amazon vs selling offline

Firstly amazon does not ask for credit as other offline buyers do. Secondly, the profits are comparatively higher because of transparent selling policies on Amazon. Moreover, Amazon guided us very well through their seller central videos and topics on the commercials of Amazon resulting in better transparency and increase in profits. Thirdly, by selling on Amazon your products get exposed to a wider audience – the whole country, whereas in offline you are limited to a fixed market.

c) Earning higher revenue (my first crore) consistently

The best day of my life was when our sales reached a crore per month, and we became totally debt free company. We felt so motivated and our next target is to reach 2 crore INR sale per month this year. This dream and goal would have never been possible without Amazon.
ABHISHEK GABA
Owner, Vimal Clothing
Amazon Seller - Part of the Amazon Saathi,
Seller Mentorship Program
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