In 2017, Amazon Business launched in India with a bold vision to revolutionize the country's procurement landscape. Over the past six years, this vision has come to life, marked by significant milestones and exponential growth. As Mitranjan Bhaduri, Head of Amazon Business Marketplace in India, reflects on this journey, the impact on both MSMEs and large enterprises is evident.

Key Milestones and Growth

"From our modest beginnings with just 14,000 sellers and a limited product selection, Amazon Business has grown into the largest aggregator of GST-enabled products," Bhaduri notes. Today, Amazon Business offers over 19 crore products from more than 10 lakh sellers, delivering to over 99.5 percent of pin codes across India. This growth is not just in numbers but also in reach, with Tier II and III cities making up a significant portion of the customer base. "Sixty-seven percent of our buying customers and 55 percent of orders come from smaller cities," Bhaduri emphasizes.

The platform has facilitated easier procurement processes, offering volume discounts, bulk purchase assistance, and post-spend analytics. This not only saves time and money for businesses but also provides critical insights for informed purchasing decisions. Companies like LT Foods Ltd. have expressed their satisfaction: "Amazon Business has become our go-to partner for our retailer gifting program and we are looking forward to starting our office supplies and IT procurement through Amazon B2B," they shared.

In 2023, during its sixth anniversary celebration, Amazon Business introduced Amazon Pay Later, allowing eligible business customers to buy on 30-day interest-free credit. Bhaduri predicts that credit adoption will drive over 25 percent of sales in the next three years. “In 2024, we launched two key features to simplify procurement for large enterprises - supplier consolidation through ‘Invoice by Amazon’ feature where customers can source from multiple sellers on Amazon Business marketplace but receive a consolidated invoice from a single seller; Procurement platform integration through “Punch Out” feature which enables Enterprise customers to integrate their procurement systems with Amazon,” he adds.

Supporting MSMEs

Amazon Business aligns with India's Digital India mission by providing a robust online platform for businesses to procure goods and services. Bhaduri highlights several key offerings:

• Range of Selection: With over 19 crore GST-enabled products across various categories, Amazon Business caters to diverse needs, from computers and electronics to office essentials and industrial supplies.
• Bonus Savings: Businesses benefit from bulk discounts, exclusive deals, and GST input credit, making procurement more cost-effective.
• Credit Extension: The Amazon Pay Later option offers eligible customers 30-day interest-free credit.
• Feature-Rich Experience: Features like multi-user accounts, ‘Bill to Ship to’, and procurement platform integration ensure efficient management of purchases.
• Fast and Reliable Delivery: Covering 99.5 percent of pincodes, Amazon Business guarantees timely deliveries, with 43 percent of products available for shipping within two days.
• Ease and Convenience: The Amazon Business mobile apps for Android and iOS enable on-the-go purchasing.

Bhaduri emphasizes the importance of technological innovations in streamlining business operations. "Tech innovations have always been a core priority for us," he says. Features like ‘Request for Quantity Discount’ and post-purchase data analytics provide businesses with greater control over their spending and procurement processes.

Future Focus and Growth Plans

Looking ahead, Amazon Business is committed to supporting the digitization journey of business customers. Key focus areas include:

• Expanding Product Range: Continuously increasing the range of products available.

• Improving Delivery Speed and Accuracy: Reducing working capital requirements by enhancing delivery services.
• Competitive Pricing: Ensuring profitability for businesses through competitive pricing.
• Convenience: Focusing on mobile purchasing for ease and efficiency.
• Enhanced Analytics: Providing near real-time insights to help businesses manage spending and improve efficiency.
• Digital Documentation: Promoting e-invoices and digital documentation for faster availability of input tax credit.

As more businesses in India shift from offline to online procurement, Amazon Business is poised to continue its growth trajectory. Bhaduri concludes, "With evolving trends, we are committed to evolving and expanding with the ecosystem."