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AMAZON SHUT DOWN WHOLESALE DISTRIBUTION IN INDIA

by Deepika Mahajan
Posted: Dec 02, 2022



"We don’t take these decisions lightly. We are discontinuing this programme in a
phased manner to take care of current customers and partners," an Amazon
spokesperson said in a statement on the shutting down of wholesale distribution
in India and making the news headlines today.

They announced On Monday that it is discontinuing Amazon Distribution, its
wholesale e-commerce website available in small neighborhood stores in
Bengaluru, Mysore and Hubli.

Amazon Distribution was designed to help kiranas, the neighborhood stores in
India, pharmacies and department stores to secure inventory from the e-commerce
giant.

"We offer a wide range of products at competitive prices and the convenience of
next day delivery at your door-step. As a member, you can purchase thousands of
items for resale at any time of the day at competitive prices and in bulk
quantities, pay via the various payment options available, get GST bill for your
order, and convenient and reliable door-step deliveries the next day," the
description mention on the website of Amazon Distribution.

Amazon haven’t mentioned any reason on why they have shut down the wholesale
distribution offering. This movement is followed up by the shutting of two other
businesses of Amazonas which are, food delivery services & the online learning
platform. The shutting down that has been one of the latest news today in India,
amid a global restructuring of its business.

India, despite being the key overseas market for Amazon, it is being lagging
Walmart’s Flipkart and struggling to make inroads in smaller Indian cities and
towns, according to a recent report by Sanford C. Bernstein.

New strong competitors of Amazon have also risen such as, Reliance Retail
introduction grocery shopping option on WhatsApp, and social commerce startups
SoftBank-backed Meesho and Tiger Global-backed DealShare.

It is expected that the e-commerce spending in India would get doubled by the
year 2025. In order to expand its presence in India, Amazon has been doing so
through stakes in local firms and has also been exploring partnerships
aggresively with the neighborhood stores, for the same.

In addition, company was outwitted by Ambani’s firm at their attempt to acquire
the Future Retail, India’s second largest retail chain.

ABOUT THE AUTHOR



Deepika is the blogger from 7 years in a lifestyle or fashion field. She always
stays up-to-date with whatever is coming in the market with respect to fashion
and lifestyle. She is an avid watch connoisseur and collector of Luxury brands.

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Member since: Mar 08, 2019
Published articles: 1


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