Amazon India is inviting wholesale merchants to transact on a new website to be launched this week, the first country outside the US where the American ecommerce major is offering the service.
The pilot service will be tested in Bengaluru before being offered to merchants in other cities, marking the entry of the Seattle-based company into wholesale ecommerce, an online business segment where foreign direct investment is permitted in India.
Amazon’s entry into the wholesale business in India comes as its Chinese rival Alibaba, regarded as a pioneer in this category, is widely expected to begin operations in the domestic market. So far, the Chinese behemoth, which has set up offices in India, has focused on connecting small and medium enterprises in India to global buyers, and not on domestic sales.
The website, which will go live in the second half of May for wholesalers in Bengaluru, will allow registered members to buy a variety of products – office, kitchen and home supplies, health and personal care products as well as food and beverages – with a minimum order value of Rs 1,000. Amazon will negotiate wholesale rates directly with manufacturers and sell to its members.