Amazon has been observing a strong growth rate in seller addition and rises in the number of million-dollar businesses on the platform even when the world is expected to get hit by the second wave of the pandemic. This trend is especially noticed in India.
The global senior vice president and India country head, Amit Agarwal claimed that 2.5 lakh new sellers have joined since last year and that the rate at which sellers have come online has gone by 50 percent post-COVID-19. According to him, there will always be naysayers out there who would not embrace technology but the right kind of people take advantage and embrace technology and (they) are going to come out of it (pandemic) as far more robust digital businesses and serve their customer base, online and offline and in ways that were not possible before.
All major retail giants like Amazon, Reliance Industries, and Walmart Inc’s Flipkart are persistently struggling in a battle to gain market share in India, where millions of middle-class customers are newly adopting online purchases of food and groceries due to the pandemic. The booming e-commerce market in the country is expected to touch $86 billion by 2024, as claimed by a research firm Forrester.
These e-commerce firms have incurred thousands of dollars in setting up infrastructure like warehouses, and logistics as well as marketing and promotions to woo users to their platforms, especially from tier II cities and beyond. When questioned about allegations that only a few large sellers – especially those where Amazon has invested – are doing well, Agarwal said “the facts speak of a very different reality”.
However, The Confederation of All India Traders (CAIT) has alleged unfair practices by Amazon and had sought a probe into the role of Amazon seller, Cloudtail India, and Appario Retail (where Amazon is a stakeholder).
Agarwal believes that the rules should improve the ease of doing business online and exports and should create a more “predictable and stable environment” that enables long-term investment. Moreover, he has added an enabling policy that would help increase the rate of growth of the e-commerce industry, which is going to be an important lever for economic recovery and job creation.
“It should improve the ease of doing business online, it should improve the ease of doing exports…it should create a predictable and stable environment that enables long-term investment,” he said.