E-commerce credit is one part of the e-commerce sector that is set to grow. It faces challenges in the sense that a lot of people do not have a credit rating. E-commerce credit is based on the credit rating system. In the developing world, e-commerce credit is not often provided due to the fact that they are not a lot of credible financial systems. With weak institutions, there is the problem of non-regulation or bribery. The best part about e-commerce credit is that you can buy the goods you love over a long period of time.
E-commerce credit is one of the best ways to attract e-commerce customers. This is how customers get to cut the costs of purchases. If e-commerce credit can spread the costs of purchasing through 12 month’s then customers can buy without breaking the bank.
E-commerce credit by eBay
E-commerce credit by eBay is called eBay credit. It is basically a credit line offered to customers who have a good credit history. You can use this credit line to purchase goods on eBay from eBay vendors.
E-commerce credit by Amazon
Amazon also offers credit to its customers. Due to the fact that Amazon has a large e-commerce product line. Most customers will buy products on Amazon due to the amazing credit line offered by the e-commerce giant.
The problems with e-commerce credit
The only problem with e-commerce credit is that a large number of individuals do not have a credit rating. Especially in the developing world. In countries in South America or Africa, most people don’t even have bank accounts. This means that e-commerce credit cannot be offered to customers in this part of the world. E-commerce credit is also sometimes unnecessary due to the prevalence of credit cards. Credit cards are a way for banks to offer a credit line to customers.