After more than a decade of offering loans to merchants on its online marketplaces, Amazon Lending is making a change. According to an email viewed by Fortune, Amazon will no longer underwrite its own loans for sellers in the U.S. and U.K. starting March 6, 2024.
Amazon spokesperson Deniz Sonmez confirmed the news, stating, “We regularly evaluate our programs and services, and have made the decision to discontinue term loans underwritten by Amazon for Amazon sellers in the U.S. and U.K.”
While Amazon Lending will continue to service existing loans, no new loan offers will be made. Instead, Amazon will promote financing solutions from other trusted third-party providers.
Last year, concerns were raised internally at Amazon about the level of defaults in the lending program. Despite this, Amazon continued to offer loans to select sellers, generating $140 billion in revenue from fees charged to sellers.
This change comes as Amazon faces backlash from top sellers over new fees and requirements. Have thoughts on this topic or a tip to share? Contact Jason Del Rey at jason.delrey@fortune.com or through secure messaging app Signal at 917-655-4267.
For more information, you can read the full article on Fortune.com.