Amazon will mark its foray into the Wholesale retail market as the company is reportedly inviting small and medium businesses to try out a new website called Amazon Business which will go live this week. Amazon had introduced a similar service in United States called the Amazon Supply, India will be the first country outside US to get the Amazons wholesale services.The company will begin testing the service in Bengaluru after which it will be expanded to other cities. The fact that Indian Foreign Investment laws allow 100 percent FDI in wholesale will help Amazon to pump in investment easily. Another development that might have prompted Amazon’s entry into the wholesale retail is that its Chinese rival Alibaba is set to offer similar service in the Indian market. Also Read - Amazon Prime Day sale: Best deals on headphones, speakers, powerbanks under Rs 1000
Alibaba has been a market leader when it comes to online B2B but it is yet to establish its foothold in the Indian market. Amazon, on the other hand, might have a relatively easy run as people in India are already well acquainted with the brand. As of now Alibaba seems to be interested in creating a bridge between global suppliers and domestic buyers, whereas Amazon will be focusing on connecting the manufacturers to wholesale buyers. Also Read - iPhone 12 for iPhone 11 launch price at Flipkart Big Saving Days sale, iPhone 12 Mini alse sees discount
Amazon will directly negotiate and ink a deal with the manufacturers and will sell to the suppliers. The company says that it aims at addressing the inefficiencies small and medium businesses face due to the anomalies in the supply chains which includes poor fill rate and lack of transparency in pricing. Also Read - Amazon Prime Day sale deals revealed: Discount on OnePlus Nord CE, Mi 11X, Samsung Galaxy M42
“We don’t have a membership fee to start with, but we will evaluate that later,” Amit Agarwal, Country Head at Amazon said. The company will start onboarding any type of business that already has a valid business license, which will include online stores, offline stores and any type of retailer.
Since the wholesale business deals with huge volume and a large inventory it becomes challenging for the companies to manage the logistics. Amazon will be required to come up with a new payment system as the traditional traders are still not used to netbanking and they usually follow a Net 30 or Net 60 payment method.