Would You Extend Credit to Amazon or eBay Buyers?

by: Philip Cohen

It's one thing to extend credit terms to a regular client in a direct business relationship, but to extend such credit terms to every individual and his dog, even for “business” purchasers, via a platform such as Amazon, who is already taking a percentage from the sale, would be insanity. If you want to accept the risk of offering credit terms to a particular customer, get the customer to deal with you directly.

Frankly, this is the sort of nonsensical suggestion that one would normally only expect to come from eBay and the cretin in its corner office, Johnny Ho. Frankly—too silly for words ...

The eBay executive suite—where the incompetent mingle with the disingenuous, the malevolent and the outright criminal, and the just plain stupid ... http://bit.ly/11F2eas

by: TomH

The answer to both questions is: NO.
Never. I'm not a bank or credit lending business.  I also agree completely with Philip i his post.  

by: thebobman

Considering a large amount of my items are sold to businesses (I deal mostly in computer parts and telecom), it would be nice to encourage more business customers, especially when they buy a couple dozen VOIP phones for a sale of about $3,000.  

by: topdog

I have to pay my suppliers for the goods I've sold, they're not going to wait an extra 15 days until I get paid - longer if they send a check or if they don't pay on time.
And what about the businesses that don't pay at all?  

by: Paul W

No, no, and no (in case there's a followup question).  Buyers have enough ways to scam us already.

by: shut1968

Not a chance..... Why? so we can refund an entire order and be screwed out of the merchandise or have to take it back for any reason what so ever? Amazon already leans way to much towards the buyer for me to ever consider anything like that.. it sounds to me more like Amazon is testing the waters to see if they can get sellers to accept a 15 day forced payment hold.. THAT would be more like the Amazon that sellers have been forced to deal with lately.. taking a sneaky approach to screw it's sellers in some way or another, in this case out of the interest they collect on millions of dollars in payment holds.. or it could be they are trying to find creative ways to purge more sellers who won't be willing to do it.. one more step towards cornering a market for certain products. Either way it's a sellers recipe for disaster if they agree to it.. period. Amazon has been on a rampage the past few years, holding sellers accountable for everything and the buyers unaccountable for anything. If you read the seller forums everyday there is another seller being suspended for some B.S. reason or being ripped off by a customer, THANK GOD I don't have to deal with that kind of garbage in our traditional B&M stores, if someone brings something back simply because they don't want it or damaged it we don't have to take it back... and our "Landlords" can't threaten to shut our business down for not accepting the return.

by: comet

Oh hell NO

by: Barbbie

No, I would not like to extend credit to them. I would like to be able to send them an invoice if needed, sometimes they need different shipping and I have to give them my email to do it. Probably against policy but no other way.

by: lostinNYC

I would. With quite a few repeat buyers that are dependable, I would not mind extending credit, as long as I could be in control as to who gets it as an offer and at what conditions. This way crucially important cash-flow and risks can be controlled.

I can see many ways in which this could be implemented in a safe way, just as I am being able to offer PayPal Credit to customers (in this sense this is already being offered in some way).

As with everything in business, every advantage over competitors will help with making sales, especially as online selling is very competitive. The losses can be factored into the sales price, just as the losses through shipper error and dishonest customers should be factored in when pricing something.

by: Moonwishes

Nope! As Tom H said, I'm not a bank or lending service.  

by: sasikat9

Never to the losers on Fleecebay and never unless I myself can do a through credit check to the buyers on Amazon.

by: Santini

WTH? If amazon wants to start extending credit to buyers, business or otherwise, why don't they take the risk? They'll be the ones vetting the "borrowers" after all. Or have some 4th party taking on the risk of nonpayers (for a fee of course). If not, then will amazon allow sellers to sell their invoices to factors who'll take on the risk themselves? Online selling just gets curiouser and curiouser (aka riskier and riskier for 3rd party sellers)

by: nothingnew

ARE THEY FREAKING KIDDING!!?? Why do the online community feel the need to micro manage everything? So glad i dont have to depend on anything online anymore. What a mess its become

by: Rexford

No. What next, payday loans?

by: eBelinda

Perhaps there is missing information because the proposal/question sounds ridiculous from a business perspective. Or maybe Amazon or eBay is just looking for another way to charge a ''fee'' paid by the the seller for extending payments from seller to buyer? They (Amazon/eBay) would charge a percentage of the funds extended which the seller would pay to use their ''service.''  

I'm in agreement with the first comment by Phillip and would like to add -- under well thought out conditions a credit check would be required to extended payments to a business for services. Then based on that an amount (with interest) or *no* amount would be agreed upon between seller & buyer. I don't know of any business' that give anyone an interest free loan for an undisclosed amount of time for services or goods that are purchased?

Further I can't imagine eBay, Etsy, Bonanza, Amazon or any other online service provider that considers what is in the best interests of the SELLER.  Too often eBay, Amazon etc are unable to make consistent business decisions among their current sellers regarding basic policies such as sales or returns when sales do not go as planned.

Given the amount of information posed in the question asked -- my answer would be NO.
 

by: Leslivres

Years ago, before online selling was so prevalent, It was customary for Libraries to receive Invoices for their purchases from a distributer. That may still be the case.

But I recall a situation back in 1998 where a Library asked me to ''Invoice'' them, and I sent the book, and invoiced them, and waited, and waited and waited... And never received payment.  

Called them, several times , and then was referred to the''billing Dept.''.

They wanted me to send them so many different things just so that I could get my $20 payment!...it was a Nightmare (*I don't even remember what all it was)...at the time I was just starting online as a casual seller. They wanted things from me such as Tax IDs EIN, Book keepers name and address, business address, letterheads etc etc etc.

I finally told them that if they didn't want to pay for my book, that I had sent them at a cost to myself, then they should just send me my book back to me.

Well after the long an short of it, they wound up keeping my book and my money...and I never invoiced another Library again!

And Never will...

Those days are long gone!

These days businesses give out their own credit line to stores, libraries etc. and they invoice them, they can afford to wait on their money....and they charge interest.

I'm not willing to wait a year to get paid!

Let them buy from someone else.

by: dad

What do you suppose is the reason behind this question?  More than idle curiosity, no doubt.  Perhaps 3rd party sellers on AmazonSupply.com?

by: Ric

I do not sell on Amazon.

My eBay listings are BIN with immediate payment required.

Those are my terms, end of story.

by: Leslivres

Guess there is no way to edit comments.

Needed to add that book distributer also invoiced bookstores, and library supply stores did as well.

Now it's all done by "In store credit" or rather "business" credit... For example, Ingram (distributer) will give you credit, if you can prove credit worthiness, etc.

As will other types of book, media, library related distributors. But NONE of them (unless you have GREAT credit worthiness with them), Will EVER just randomly send out their product to just anyone anymore.

I imagine it's the same way in other types of retail.

So NO, I Will NOT extend credit to a random anyone on the whims of Amazon!


If Amazon wants to extend credit to various entities...fine, but PAY ME FIRST!

by: FREDDY

One of the reasons businesses started buying online was to save some money. Cheaper online....
If they want TERMS. they already have them with the credit card company. Individuals and/or business pay with credit card and then they can pay whenever they want.  
ebay, ?? a lot are getting the items for free. How do you extend credit for 15 days, when you are not going to get paid anyway????