Amazon India To Expand into Wholesale Supply Business, report says

If reports are to be believed, Amazon India will make its foray into the Wholesale retail market as the world's largest e-commerce player is inviting small and medium businesses to try out a new website which will go live this week.

According to a report published in The Economic Times, the pilot service will be first tested in Bengaluru before being offered in other Indian cities, marking the entry of Amazon into wholesale e-commerce. It should be noted that Indian laws allow 100% FDI in wholesale that will help Amazon to expand its operations in this segment without any major hiccups.

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Amazon had previously introduced a similar service in the United States called the Amazon Supply, India will be the first country outside the US where the e-commerce giant is offering the service.

Amazon's entry into the wholesale business in India comes at a time, when Alibaba, the world's largest e-commerce platform, is expected to begin operations in the domestic market in the coming months.

Amazon will negotiate wholesale rates directly with manufacturers and sell to its members, notes The Economic Times. The publication had earlier claimed that Amazon India would launch a website for business e-commerce in the first half of 2015.

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"We don't have a membership fee to start with, but we will evaluate that later," said Amit Agarwal, Country head at Amazon India.

He further stated: "The company will seek to onboard online kirana stores, hospitals, schools and home entrepreneurs -- anyone who has a valid business licence."

Update: Amazon has finally launched AmazonBusiness.in, a dedicated portal targeting small business owners and traders in India. So far, AmazonBusiness.in has been rolled out in Bangalore.