Amazon Business, the B2B platform is making rapid strides in India where it has become the biggest marketplace for the company outside the United States. Since its launch in India about six years ago, the platform has seen its customer base grow 68 per cent annually, the pace accelerating over the last three years with over 6.5 lakh sellers on its platform.
“Our aim is to understand and cater to the distinct needs of MSMEs through our customer backward approach,” Suchit Subhas, Director, Amazon Business.
Since its launch in
2017, Amazon Business has aimed to empower MSMEs by being a one-stop destination offering a wide selection of business supplies, competitive pricing, and a vast delivery network.
They are India’s largest GST store having over 16 crore GST-enabled products. They started with 14,000 sellers and now we have over 6.5 lakh sellers. The marketplace offers easy online procurement, a wide customer and seller base, along with the tools to manage procurement efficiently.
This helps MSMEs save time and money, providing them with insights to make informed purchasing decisions. They are able to deliver to 99.5 per cent pin codes across the country by utilising our deeply penetrated network of fulfilment centres across India.
Today, more than 30 per cent of our customers and 25 per cent of our orders come from Tier II and Tier III cities. In the last 3 years, Amazon Business has grown its customer base by 5X and seen an increase in total sales by 4X.
They have seen exponential growth, with a CAGR of 68 per cent in customer base, making the Indian marketplace of Amazon Business the second biggest after the US. They also witnessed a 42 per cent increase in monthly transacting customers.
At Amazon Business, They follow a customer backward approach, taking feedback from customers to incorporate new features and initiatives, which help in increasing the output for MSMEs. To tackle the challenges faced by MSMEs in India, they have launched a host of features, such as Bill to Ship, Multi-User accounts, Credit Extension, Digital catalogues, and Post-Spend analytics.
Amazon Business is revolutionising procurement in India digitally and contributing to the Digital India mission by providing a reliable and efficient platform for businesses to purchase goods and services online. They offer frequently purchased business supplies and products at wholesale prices to small and medium businesses. They also offer the largest selection of products that offer savings through GST input tax credits, bulk discounts, and business-exclusive deals and offers.
Today, indirect spending is one of the biggest long-tail challenges in the procurement process for the majority of businesses. It not only requires ample time investment due to multiple vendor coordination but also leaves less room for negotiations due to the low volume of supplies. The absence of insights on such procurements has a direct impact on the profit. Amazon Business supports SMBs to run their business more efficiently by tackling these indirect spends, such as multiple vendor management, low bargaining, negotiations due to lower volume, and post-spend insights.
