According to a senior Amazon executive, the ecommerce giant is setting its sights on achieving $20 billion in exports from India by the year 2025.
Amazon’s Director of Global Trade, Bhupen Wakankar, told Reuters that the company plans to achieve the $20 billion export target by adding thousands of small sellers to its network and e-commerce marketplace.
“We are very encouraged by the number of entrepreneurs who signed up this year. We are looking to scale up,” Wakankar added.
He mentioned that the forthcoming 11-day ‘Black Friday Cyber Monday sale’ is anticipated to boost the already substantial demand for organic health supplements, bath towels, jute rugs, and robotic games for children made in India.
The e-commerce giant has shifted its attention to bringing more Indian sellers onto its platform, assisting them in reaching a global audience. This strategic move is a component of the Amazon Global Trade initiative, introduced in 2015, and serves as the direct-to-consumer (D2C) exports platform for the e-commerce giant.
According to the report, the export program is gaining momentum in India. Bhupen Wakankar mentioned that since its inception with only a few sellers, the platform now features over 100,000 small manufacturers offering a diverse range of products to customers overseas.
Notably, sectors like beauty, apparel, home, kitchen, furniture, and toys have experienced the most significant expansion on the platform. Wakankar also observed that a considerable number of sellers joining the platform are novices in exporting, with many transitioning from corporate roles to venture into the realm of e-commerce exports.
The platform has achieved a substantial 70% year-on-year (YoY) growth, primarily driven by features like efficient logistics support and the ability to connect with over 200 million Amazon Prime members worldwide. Additionally, he mentioned that Amazon has reduced the subscription fees for exporters to attract more merchants and enhance the appeal of the platform.
Wakankar anticipates that the approaching holiday season in the United States, Britain, Canada, Australia, and Germany will lead to increased sales of Indian products in these nations.
The $20 billion target aligns closely with the e-commerce giant’s aim to facilitate increasing exports from India. Earlier this year, Amazon stated that it anticipated its total exports from India to surpass the $8 billion mark by 2023.
To drive this initiative, the company asserts that it has digitized over 2 million small and medium enterprises (SMEs) in India, with a goal of digitizing 10 million small businesses. Additionally, it states its readiness to generate up to 2 million direct and indirect jobs in India by 2025.
In addition to this, Amazon unveiled the introduction of its cross-border logistics platform, SEND, in November last year to encourage the involvement of Indian sellers.
The e-commerce giant seeks to capitalize on the expanding local digital ecosystem and the diverse manufacturing landscape throughout the country. Amazon aims to harness this opportunity to boost its revenues and scale.
As part of this initiative, Amazon CEO Andy Jassy, earlier this year, met Prime Minister Narendra Modi in the US and pledged an additional investment of $15 billion in India. With this commitment, the total investment by the US-based e-commerce company in India will potentially stand at $26 billion.
