Amazon's bold move! Exports from India-based sellers to cross $5 billion in 2024, indicates shift from China
By Shweta Kumari | First Published Sep 5, 2024, 7:21 PM ISTAmazon Inc is set to escalate its exports of small-ticket items from India to an impressive $5 billion this year, up from nearly $3 billion in 2023. This bold strategy aims to cater to markets including the United States and Britain, marking a notable shift from its traditional reliance on China.
In a significant reshaping of global trade dynamics, Amazon Inc is set to escalate its exports of small-ticket items from India to an impressive $5 billion this year, up from nearly $3 billion in 2023. This bold strategy aims to cater to markets including the United States and Britain, marking a notable shift from its traditional reliance on China.
This move by Amazon, a titan in the e-commerce sphere, highlights India's rapidly expanding role in the global supply chain and reflects a broader trend among multinational corporations seeking to diversify their sourcing strategies away from China.
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Walmart Inc. is also ramping up its investments, with plans to boost its annual imports from India to a substantial $10 billion by 2027, a dramatic increase from approximately $3 billion in 2020.
"India is naturally one of the largest sources of selection for Amazon," Bhupen Wakankar, Amazon's director of global trade, stated during an exclusive interview with Reuters on Thursday.
He further elaborated on the company's strategic initiatives, revealing that Amazon has forged partnerships with India's commerce ministry and various trade associations to connect with thousands of small manufacturers across the country. These partnerships will support a diverse array of products, ranging from textiles and jewelry to household goods and Ayurveda products.
These small-ticket items, often less impacted by import taxes and easier to ship directly to international customers, are becoming increasingly pivotal in Amazon's global sourcing strategy.
"We are investing significantly in tools and technologies to help sellers optimize their reach, enhance product discovery, and increase sales," Wakankar noted, ahead of an exporters' meeting in New Delhi.
Amazon and Flipkart, Walmart's Indian counterpart, have dramatically transformed India's retail sector in recent years by investing billions in sourcing from small businesses and enticing consumers with substantial discounts. However, this rapid expansion has not been without controversy.
India’s commerce minister has criticized Amazon and other e-commerce giants for alleged predatory pricing practices, warning that the sector’s rapid growth could disrupt millions of traditional brick-and-mortar stores across the country.
In a bold commitment to the Indian market, Amazon announced last June its plans to elevate its investments in India to $26 billion by 2030, including significant funds for its cloud business. Through its Global Selling Programme, launched in 2015, Amazon has empowered around 150,000 small Indian exporters, facilitating approximately $8 billion in direct sales to international consumers by the end of 2023.
The company aims to drive $20 billion in cumulative e-commerce exports from India by 2025, reinforcing its commitment to this burgeoning market.
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