Amazon Digitises Over 4 Mn Small Businesses In India

The Indian economy is largely small and medium-sized enterprises. These businesses contribute to nearly a third of India’s GDP and drive half of the country’s exports. 

According to an IBEF report, the number of MSMEs in India grew by a CAGR 18.5% from 2019 to 2020.

Despite enjoying a substantial share in the country’s economy, these businesses are largely unorganised and do not reap the benefits of digitisation. To solve this, ecommerce players, private organisations, and the government are now coming forward to help small businesses embrace digitisation. 

Recently, ecommerce giant Amazon has digitised more than 4 Mn (40 lakh) MSMEs under its Amazon Global Selling Programme, it said in a press statement.  

Under the programme, Amazon is empowering small businesses including sellers, artisans and weavers, delivery and logistics service partners to help them grow customers and expand reach across the world. Besides, the ecommerce giant claims to have created more than 1.16 Mn direct and indirect jobs, and enabled nearly $5 Bn in cumulative exports. 

This comes at a time when big ecommerce players such as Flipkart and eBay are supporting small and emerging businesses in India that are striving hard for recognition in the national and international market. 

A few days ago, Flipkart inked MoU with Micro, Small and Medium Enterprises and Textiles Department, Government of West Bengal under the Flipkart Samarth programme. The association was done to support and upskill local artisans, weavers, and handicraft makers while leveraging the ecommerce platform. The move would further help scale their local products nationally.

Earlier, Flipkart signed an MoU with MP Industrial Development Corporation Ltd in March this year. The partnership would help small business owners such as local artisans, weavers and craftsmen to scale their products nationally. 

In March this year, eBay India also signed an MoU with Madhya Pradesh Industrial Development Corporation Limited to help small businesses launch their online export businesses on eBay marketplace websites. Under this initiative, eBay would help MP-based small businesses with the sign-up processes as well as other onboarding procedures. 

On the other hand, launched in 2015, Amazon Global Selling is a flagship program of Amazon that helps lower the entry barrier for Indian small businesses to start or expand their export business using ecommerce. The program helps Indian exporters reach customers worldwide through Amazon’s international websites and marketplaces thus offering an avenue for businesses of all sizes to build global brands. 

Further, Amazon claims to have enrolled more than one lakh exporters across India on the program, showcasing millions of indigenous (Made in India) products to customers in over 200 countries and territories across the world. Amazon said, most of these businesses are emerging brands that are led by first-generation entrepreneurs. It is presently aiming $20 Bn of exports by 2025. 

In July 2021, Amazon opened a Digital Kendra in Surat to help small businesses digitise themselves. The Kendra has served more than 4000 small businesses that are based in Surat and neighbouring areas to date. 

The ecommerce behemoth also started its India-focussed venture fund, Amazon Smbhav Venture Fund of $250 Mn in the previous year (2020). The fund invests in startups and entrepreneurs that are doing tech innovations in the digitisation space. As part of the fund, Amazon has invested in startups including MyGlamm, M1xchange and smallcase.