Amazon Business gains users as an outcome of the MSME sector's increased participation.

Posted under: MSME
Date: 2023-10-17
Amazon Business gains users as an outcome of the MSME sector's increased participation.

Amazon Business, the B2B arm of the e-commerce giant, has witnessed a surge in sellers, driven by increased corporate and start-up adoption of online procurement. With over 10 lakh sellers offering 19 crores plus GST-enabled products, the platform has become a leading aggregator in India. The rise of MSMEs in smaller cities, aided by reduced logistics costs and regional language support, has contributed significantly. Data suggests that a substantial portion of the 85 million MSMEs in India are projected to be online by 2027, with a significant percentage using e-payment methods. Tier 2 and 3 cities account for a major share of buying customers and orders, demonstrating promising growth prospects. While electronics remain popular, non-electronic segments such as maintenance and janitorial supplies are rapidly gaining traction. The transition to online procurement is driven by factors like transparent pricing, access to quantity deals, spend control, and enhanced visibility.

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