AmazonBusiness, a marketplace on Amazon.com for businesses for all sizes is now planning to expand to new cities in order to nab a bigger pie of the business to business retail spectrum. Started in Bengaluru a year back, AmazonBusiness continues to enlarge its route compared to its US market where it clocked an annual sale of around $1 billion last year.
The move is touted to be a calculative approach in sync with the tax structure in the country. Commenting on the same Kaveesh Chawla, GM, AmazonBusiness said that in the B2B business, one can have presence in one part of the country while service the rest. In case of the transactions, it is a state specific business. Tax rates vary here geographically and we have to have our fulfilment centres in whichever new state we get into.”
The market is underserved as 90% of the trade happens through the mom-and-pop stores which source products from traditional distributor network, he added.
Going further Chawla said that the cash on demand, which was launched in December, is massive and constitutes the majority of the order. The company also created a closed loop credit card for small retailers in partnership with banks as well as payment through NEFT/RTGS for transfer of money on to their account directly, within two days of order generation.
The network can be opened up for incremental services such as credit services from financial institutions. For brands like Coolpad, Motorola, Amazon is the distributor in the absence of an offline distributor channel. New brands are too looking at other channels of sale such as supermarkets.
AmazonBusiness currently partners with over 300 brands in India, dominated by FMCGs such as Dabur, Patanjali, as well as Indian brands like Emami and CavinKare, home and kitchen utilities and devices, babycare, personal care and health and electronics.