Starting with Bengaluru, Amazon India is inviting wholesalers to transact on its new website.
India is the first country where American eCommerce player Amazon is inviting wholesale merchants to transact on its new website slated to launch this week. According to US retail giant Walmart, India's wholesale market will grow to $700 billion (Rs 42.5 lakh crore) by 2020 from $300 billion now.
To beat competitor Alibaba, regarded as a pioneer in China for business to business transactions, and soon expected to begin domestic wholesale operations in the Indian market, Amazon has taken the leap to enter into the wholesale business in India. So far, Alibaba has been connecting small and medium enterprises in India to international buyers, and not on domestic sales.
Before being offered to merchants in other cities, this pilot service will first be tested in Bengaluru. The move will facilitate Amazon to enter into wholesale eCommerce, an online business segment where foreign direct investment is permitted in India.
“Small and medium businesses often suffered because of inefficiencies in the supplies procurement system.” said Amit Agarwal, country head at Amazon India.
“Either the fill rates were poor, or the pricing was not transparent, or the delivery options were inconvenient and vendor lead time was huge. These are the problems we are looking to address,” added Agarwal.
Amazon’s website will allow registered members to buy a variety of products – office, kitchen and home supplies, health and personal care products as well as food and beverages – with a minimum order value of Rs 1,000. The website will go live for wholesalers in Bengaluru in the second half of May.
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