The media reports that Amazon plans to increase the volume of exports of its goods from India.
The mentioned intention of the e-commerce giant is a step in the effort to achieve an export target of $20 billion by 2025. Bhupen Wakankar, Amazon’s director of global commerce, says the company is encouraged by the number of entrepreneurs who have completed the registration process this year to join its digital platform.
Currently, the giant of trading in the virtual space is striving to expand the scope of its activities. As part of the relevant efforts, the company plans to use the rapid growth of interest in the export of e-commerce. More than 100,000 small manufacturers are already interacting with the Amazon platform, providing a wide range of products to customers around the world. The opportunity to operate in the digital space offered by the e-commerce giant has not only become a kind of new direction for novice exporters but also ensured the annual growth of their business by 70%.
Amazon’s global trading platform was launched in 2015. At the early stage of the existence of this commercial space, only a few sellers were involved in it. After a while, the mentioned platform began to rapidly gain popularity in India. The commercial space offered by Amazon has already proven its ability to change the rules of the game for small exporters. The mentioned product suppliers did not have access to global markets before interacting with the trading industry giant’s platform. The business of small exporters has shown significant growth thanks to logistical support and access to more than 200 million Amazon Prime users worldwide.
On the platform of the e-commerce giant, the most rapid improvement in trading indicators is recorded in such spheres as clothing, home, kitchen furniture, toys, and beauty. The level of consumer demand for the products of Indian suppliers rose sharply during the holiday seasons. International buyers are showing interest in goods made in India. In this case, there is a high level of demand for products of such categories as household items, robotic games for children, and organic health supplements.
Amazon, to gain more exporters to its platform, has taken measures this year to reduce barriers to entry into the market. The company reduced the subscription fee for its global program from $120 to $1 for the first three months for vendors who signed up before March 31.
In May, Amazon said that 60% of sales in its stores are from independent sellers, most of whom are representatives of small and medium-sized businesses. Dharmesh Mehta, the company’s vice president for global partner services, said that the e-commerce giant invests billions of dollars annually to offer entrepreneurs a set of tools and resources that will help them quickly gain access to capital, create their brands, scale, and reach more customers.
At an event in New Delhi in early 2020, Amazon promised to export $10 billion worth of made-in-India goods by 2025. At that time, the company’s founder Jeff Bezos expressed the hope that investing for the appropriate purposes will lead millions of people to the future prosperity of the said country.
As we have reported earlier, Amazon Introduces AI-Powered Security Solution for Business.