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Amazon.com Inc. observed that due to quantity limits placed on its consumer marketplace, B2B companies often struggled to stock up on inventory. Identifying the rapid emergence of small and medium-sized businesses in India, Amazon launched a business-to-business retail service called Amazon Business on its Indian platform last week. The service intends to target a wide range of businesses including technology, manufacturers, service companies – even universities and schools.
Amazon expects its new marketplace to offer a catalogue of over 100 million products and expects heightened demand for electronics, office products and printers. Working aggressively to capture India’s B2B momentum, Amazon has separately invested INR 750 crore to build out a wholesale marketplace in India. They have also hired a top executive, Shalini Puchalapalli of PepsiCo India to lead Amazon Business.
The most pronounced advantages of Amazon Business include lower pricing at large and discounted rates that apply to bulk purchases. They are also looking to add more skews, such as furniture, to the business-to-business marketplace to increase the value of goods sold through its platform.
Amazon originally set up an online wholesale arm in 2015 and recently opened the platform to all merchants. Since its short-lived time on the open market, 15,000 small business have signed up to be part of the service. Amazon’s intentions to tie up with banks and financial institutions will allow it to sanction interest-free business credit cards to each of its eligible members – thereby increasing transaction values and customer retention rates while ensuring seamless procurement channels for burgeoning businesses around India.