Amazon official said the company expects to help Indian exporters sell small goods worth about $5 billion in markets like the United States and United Kingdom this year, up from less than $3 billion in 2023.
Amazon launched its global selling program in 2015, estimating nearly 150,000 small exporters nationwide will use the company’s e-commerce platform to directly sell products to overseas consumers.
Bhupen Wakankar, Amazon’s Global Trade Director, stated before an exporter meeting in New Delhi on Thursday (September 5) that, “We are heavily investing in tools and technology to help sellers optimize their coverage, enhance product development, and increase sales.”
According to a statement from Amazon, by the end of 2024, Amazon will help e-commerce exports from tens of thousands of Indian businesses cumulatively exceed $13 billion.
As one of the world’s largest e-commerce companies, Amazon’s initiative highlights India’s growing role in the global supply chain and reflects the international trend of multinational companies diversifying their supply chains away from China to multiple countries.
Walmart Inc. announced in 2020 their plan to increase the supply from India to $10 billion annually by 2027, up from about $3 billion at the time.
Wakankar mentioned that Amazon has collaborated with the Indian Ministry of Commerce and Trade Association to connect with small manufacturers nationwide, dealing in various products from textiles, jewelry, home goods to Ayurvedic products.
These products are often easily shipped directly to customers abroad, with less impact from import taxes compared to higher-cost products.
Amazon and Flipkart under Walmart have reshaped the retail industry landscape in India in recent years, investing billions in sourcing from small businesses and attracting consumers through large discounts.
In June last year, Amazon announced plans to increase investments in India to $26 billion by 2030, including funds for cloud computing business.
Wakankar added that Amazon’s goal is to promote cumulative e-commerce exports from India to reach $20 billion by 2025.
However, these e-commerce platforms also face criticism from trade and political groups. The Indian Ministry of Commerce has accused Amazon and other e-commerce companies of predatory pricing practices and stated that the rapid rise of the industry should not disrupt the operations of millions of physical stores in the country.