No marketer wants to spin his wheels endlessly. To become an efficient marketer you have to drive traffic to your shop floor, whether online or offline, convert that traffic, and do it cost effectively. Sometimes that cycle can be shortened with the help of a mentor that knows how to play this game.
That’s precisely the role Amazon’s wholesale B2B marketplace, Amazon Business, hopes to play in India, which happens to be its second-largest market, next to the US. With its eyes trained on small businesses, Amazon Business believes the key to unlocking the potential of the market lies in simplifying the procurement needs of sellers and in ensuring they make cost-effective deliveries. “In 2023, we will double down on our customer backward approach to cater to as many customers and sellers as we can,” says Suchit Subhas, director, Amazon Business India. The company claims to serve 99.5% of pin codes across the country, with more than 30% of the customers come from tier 2 and 3 markets.
Consider the potential of this segment. According to Redseer Strategy Consultants, India’s b2b e-commerce market, led by players like Udaan, Jiomart and Amazon Business, will reach $90-100 billion in gross merchandise value by 2030. It is further projected that the b2b general trade opportunity in India will reach $1.2 trillion by 2030, with e-b2b coming up as a promising digital procurement solution. That said, the ongoing supply chain disruption, shipping delays, worker shortages, and global conflict will continue to have a big impact on how this segment operates.
Now look at Amazon Business’ performance in recent months. During the latest season of Amazon’s annual shopping event, The Great Indian Festival, Amazon Business saw around 50% jump in its customer base and over a 100 per cent growth in orders. It registered 200% jump in sales over the last year along with a two-fold growth in customers placing bulk orders.
One step at a time. Started in 2017 with 14,000 sellers, Amazon Business has over 6.5 lakh sellers currently. The small business owner and entrepreneur has been challenged over the past year. A big bug bear for them is that all GST procedures are online which is difficult for a small business owner to manage due to the lack of technical resources. So a big chunk of AB’s products are designed to address this issue. It offers more than 16 crore GST-enabled products, and in the last five years, has added a host of features with the help of which businesses can obtain GST invoices with ease, besides accessing the global giant’s business analytics tools and bulk discounts. Earlier this year, AB launched an Android and iOS-optimised mobile app designed to improve the procurement experience of business customers. In addition, it has been hosting events to allow customers to avail of deals
and promotions.
“The top products that drive sales for us reflect the type of customers we are catering to,” Subhas says. Over the past year, for instance, it has been closely working with its selling partners to cater to customers’ work-from-home needs by adding products in categories such as home office furniture, electronic essentials like routers, headphones, keyboards, and office stationery, among others. With the pandemic-led restrictions easing off globally, Subhas anticipates a surge in demand for office supplies, toiletries, and related products. Going forward, Subhas says, prioritising fulfillment and personalising the overall experience will only grow in importance.