Amazon shut down Wholesale Distribution in India

"We don’t take these decisions lightly. We are discontinuing this programme in a phased manner to take care of current customers and partners," an Amazon spokesperson said in a statement on the shutting down of wholesale distribution in India and making the news headlines today.

They announced On Monday that it is discontinuing Amazon Distribution, its wholesale e-commerce website available in small neighborhood stores in Bengaluru, Mysore and Hubli.

Amazon Distribution was designed to help kiranas, the neighborhood stores in India, pharmacies and department stores to secure inventory from the e-commerce giant.

"We offer a wide range of products at competitive prices and the convenience of next day delivery at your door-step. As a member, you can purchase thousands of items for resale at any time of the day at competitive prices and in bulk quantities, pay via the various payment options available, get GST bill for your order, and convenient and reliable door-step deliveries the next day," the description mention on the website of Amazon Distribution.

Amazon haven’t mentioned any reason on why they have shut down the wholesale distribution offering. This movement is followed up by the shutting of two other businesses of Amazonas which are, food delivery services & the online learning platform. The shutting down that has been one of the latest news today in India, amid a global restructuring of its business.

India, despite being the key overseas market for Amazon, it is being lagging Walmart’s Flipkart and struggling to make inroads in smaller Indian cities and towns, according to a recent report by Sanford C. Bernstein.

New strong competitors of Amazon have also risen such as, Reliance Retail introduction grocery shopping option on WhatsApp, and social commerce startups SoftBank-backed Meesho and Tiger Global-backed DealShare.

It is expected that the e-commerce spending in India would get doubled by the year 2025. In order to expand its presence in India, Amazon has been doing so through stakes in local firms and has also been exploring partnerships aggresively with the neighborhood stores, for the same.

In addition, company was outwitted by Ambani’s firm at their attempt to acquire the Future Retail, India’s second largest retail chain.

Deepika is the blogger from 7 years in a lifestyle or fashion field. She always stays up-to-date with whatever is coming in the market with respect to fashion and lifestyle. She is an avid watch connoisseur and collector of Luxury brands.