It seems that the trust Jeff Bezos has shown earlier this year on Amazon’s Indian arm has started to pay off. Amazon Wholesale India, the US-based ecommerce giant’s Indian wholesale distributor has raked in $1.08 Bn (INR 7000 Cr) worth sales in FY 16-17.
Interestingly, Amazon India has credited this success to current ecommerce FDI guidelines.
Amazon Wholesale (India) Pvt. Ltd was launched in 2013. Amazon India started using it as a major distributor after DIPP made it compulsory that sales from a single vendor could not exceed 25% of the total gross sales of an online marketplace.
The unit is now used majorly as a vendor for smartphones, one of the key categories currently in ecommerce, especially those with exclusive launches. This further made possible for the ecommerce giant to sell smartphones along with a slew of other new vendors within the limits of government regulations and offered the company a greater control over its inventory and logistics.
As appeared in various media reports, Amazon Wholesale India has increased its turnover by 2700 times in FY16-17, thereby contributing a major part to global ecommerce giant’s overall operations in India. It currently has a network of more than 15,000 vendors selling across categories including groceries and electronics. Overall, Amazon India has 250K vendors selling about 160 Mn products.
Earlier this year in July 2017, Amazon also infused $52.7 Mn in its Indian wholesale arm, taking the total investment to about $117 Mn (INR 756 Cr). At the same time, the global etailer is also boosting its seller services, wherein it has already infused $2.1 Bn so far, the latest infusion being of $260 Mn (INR 1,680 Cr) in July only. Not only this, it also doubled up its war chest to $4.47 Bn in line with arch nemesis Flipkart’s $4 Bn+ funding earlier this year.