Amazon Aims $5 Billion in Sales from Indian Exporters in 2024, Shifts Focus Away from China Sourcing

Amazon Inc aims to help Indian exporters sell $5 billion worth of products this year in the US and UK, compared to almost $3 billion in 2023, according to a report by Reuters, quoting a company official.

Under Amazon’s Global Selling programme, which began in 2015, around 1.5 lakh small Indian exporters are expected to sell their goods directly to international buyers on Amazon’s platform.

“We are heavily investing in tools and technologies to help sellers expand their reach, improve product visibility, and boost sales,” said Bhupen Wakankar, Director of Global Trade at Amazon.

Amazon aims to assist thousands of Indian businesses in reaching a total of $13 billion in e-commerce exports by the end of 2024, as mentioned in the company’s statement.

This move highlights India’s growing importance in the global supply chain and reflects a trend among multinational companies to reduce dependence on China.

In a similar effort, Walmart Inc said in 2020 that it plans to increase its Indian sourcing to $10 billion annually by 2027, compared to around $3 billion at the time.

Amazon has been working closely with India’s Ministry of Commerce and trade groups to connect with small manufacturers. These sellers offer products like textiles, jewellery, household items, and Ayurvedic products, which are easier to export and attract lower import taxes.

E-commerce in India

Amazon and Walmart have transformed India’s retail market in recent years by investing billions in sourcing from small businesses and offering discounts to attract customers. However, these companies have faced criticism from trade and political groups.

Commerce Minister Piyush Goyal has accused Amazon and other e-commerce platforms of using unfair pricing strategies, warning that the sector’s growth should not harm India’s traditional brick-and-mortar stores.

In June, Amazon announced plans to increase its investments in India to $26 billion by 2030, including funding for its cloud business. The company aims to generate $20 billion in total e-commerce exports from India by 2025, according to Wakankar.