Amazon to roll out AmazonBusiness, its B2B platform to more Indian cities

Editor | Sep 10, 2020

Good news for business people. Amazon is expanding its B2B website, AmazonBusiness. The service, which was initially available only in Bangalore and Mangalore, will include more cities.

Amazonbusiness.in was introduced as a pilot in the two cities in 2015. It is a website for business people, who can purchase goods in bulk at the wholesale rates. Businesses dealing in food and beverages, health and personal care, office stationery, bed and bath supplies, and food and beverages can purchase these products from AmazonBusiness, with the intent to sell it.

A total of three hundred brands, including Patanjali, Emami, Dabur and KavinCare are associated with AmazonBusiness.

Taking baby steps

Amazon is treading lightly with the idea in India, due to the lack of a uniform tax code across the country. Kaveesh Chawla, General Manager of AmazonBusiness, says,

“Tax rates are different in different parts of the country and we have to have our fulfilment centre in whichever new state we get into.”

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The preferred mode of payment is cash on demand, with credit card transactions and NEFT transfers keeping pace.

The company’s US model of B2B is doing quite well. In its first year of operation, Amazon declared that it had hit a sale of $ 1 billion, and the month on month growth was 20%. Justin Post, internet analyst with the Bank of America Merrill Lynch, noted,

“We estimate Amazon Business 2016 GMV at $3.5bn, with GMV exceeding $25bn by 2020, and view our estimates as conservative given the larger addressable market, very low current awareness of Amazon’s efforts in the category, and disclosure of recent category traction.”

Everything is slowly going online now, including wholesale purchases. If Amazon is able to introduce AmazonBusiness to more cities, it would certainly make things easier for online sellers with the ease of purchase.


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