Amazon’s Export Plans for Indian Small Businesses

By Manoj Kumar
NEW DELHI (Reuters) – Amazon Inc expects to assist Indian exporters in selling about $5 billion worth of small-ticket items through its platform this year to markets such as the United States and Britain. This is an increase from nearly $3 billion in 2023, according to a company official.

Under the Amazon Global Selling programme, launched in 2015, nearly 150,000 small exporters in India are anticipated to sell their products directly to overseas consumers using Amazon’s e-commerce platform.

“We are investing significantly in tools and technologies to help sellers optimize their reach, enhance product discovery, and increase sales,” said Bhupen Wakankar, director of global trade at Amazon, in a Thursday interview ahead of an exporters’ meeting in New Delhi.

Amazon aims to facilitate $13 billion in e-commerce exports from Indian businesses by the end of 2024, according to a company statement.

This initiative by one of the world’s largest e-commerce firms highlights India’s increasing role in the global supply chain and reflects a trend among multinationals to diversify supply sources away from China.

Walmart Inc previously planned to increase its supplies from India to $10 billion a year by 2027, rising from approximately $3 billion at that time.

Wakankar stated that Amazon has partnered with India’s commerce ministry and trade associations to connect with small manufacturers across the country who offer products ranging from textiles and jewelry to household items and Ayurveda products. These products are typically easier to ship directly to customers abroad and are less affected by import taxes than pricier items.

Both Amazon and Walmart’s Flipkart have significantly transformed India’s retail landscape in recent years, investing billions to source from small businesses while attracting consumers through substantial discounts.

However, they face criticism from trade and political groups. India’s commerce minister has accused Amazon and other e-commerce firms of predatory pricing practices, arguing that rapid growth in the sector should not disrupt millions of physical stores in the country.

Last June, Amazon announced it would increase investments in India to $26 billion by 2030, which includes funding for its cloud business. The company aims to facilitate $20 billion in cumulative e-commerce exports from India by 2025, added Wakankar.