Prime Day 2020 biggest ever for small businesses: Amazon

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August 11, 2020 8:10 AM

Amazon had earlier said the firm’s Global Selling programme has helped Indian small businesses reach cumulative exports worth over $2 billion since its launch in 2015.

Amazon had earlier said the firm’s Global Selling programme has helped Indian small businesses reach cumulative exports worth over $2 billion since its launch in 2015.

Amazon on Monday said over one million Prime members in India bought products from small and medium businesses (SMBs) during the 14-day lead-up to Prime Day ending August 7. Existing members were allowed to avail deals on products offered by small businesses a few days prior to the sale. More than twice as many customers signed up for a Prime membership during the two-day annual sale event compared with last year, the company claimed.

India, which was the first market to host Prime Day for Amazon this year, saw more than 65% of the new Prime members coming from outside the top 10 cities, including places such as Dholpur and Sirohi in Rajasthan and Mokokchung in Nagaland. Personal computing, large appliances, kitchen, smartphones, apparel and pantry categories were among those that registered the highest demand in terms of units sold.

Over 91,000 SMBs, artisans, weavers and women entrepreneurs from over 5,900 PIN codes participated in Prime Day – “the highest ever”. More than 62,000 sellers were from non-metro and tier II and III cities. Nearly 31,000 SMB sellers witnessed their highest sales ever with over 4,000 SMB sellers each registering sales of Rs 10 lakh or more, Amazon said in a statement.

Artisans and weavers who sell their products through Amazon Karigar store witnessed a growth of 6.7 times while women entrepreneurs from the Saheli programme saw a growth of 2.6 times against average-day sales. Over a thousand local shops from over 100 cities also made their Prime Day debut this year.

“This was our biggest Prime Day ever for small businesses – nearly 1 lakh SMB sellers (70% from small towns) received orders from across 97% of India’s pin-codes,” Amit Agarwal, SVP and country manager at Amazon India, said.

During its Q2 2020 global earnings call late last month, Amazon officials had reiterated that the focus is on digitising sellers in India, many of whom belong to the micro, small and medium category. Amazon India will work towards on-boarding more sellers in the country and recruiting more people. Chief financial officer Brian Olsavsky said India is the biggest market in terms of investment among the company’s slate of new countries. Amazon’s international business posted operating profits of $345 million in the three months ended June 30 on the back of a pick up in demand. The segment had reported losses of $601 million in Q2 2019.

Amazon had earlier said the firm’s Global Selling programme has helped Indian small businesses reach cumulative exports worth over $2 billion since its launch in 2015.

The company that recently announced addition of 10 new fulfilment centres and added about 70,000 temporary job roles in the country is facing stiff competition with the entry of JioMart that is planning to broaden its offerings beyond groceries. Currently, the domestic e-commerce space is led by Amazon and Walmart-backed Flipkart

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