Amazon, celebrating ten years in India, will cut seller fees by 10% on all transactions on June 5, 2023, according to a recent announcement.
What Happened? Boasting 1.2 million sellers on its platform, the e-commerce behemoth maintains a comparable number to its main competitor, Flipkart, which hosts 1.1 million sellers.
Amazon has invested over $6.5 billion (₹53,637 crore) since launching its Indian operations on June 5, 2013. This funding has fueled expansion in sectors such as e-commerce and video streaming through Prime.
The company has also introduced features like vernacular language support, two-hour deliveries, and a $250 million (₹2,062 crore) fund, Amazon Smbhav, to invest in Indian direct-to-consumer companies. However, Amazon plans to phase out several initiatives, including Amazon Food and Amazon Academy, starting August 2023.
Despite this, Amazon reaffirms its commitment to India. The company plans to digitise 10 million small businesses, enable $20 billion (₹1,65,036 crore) in exports, and create 2 million jobs by 2025. This comes after Amazon has already digitised over 4 million small businesses, facilitated over $5 billion (₹41,286 crore) in cumulative exports, and created more than 1.1 million direct and indirect jobs.
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Nevertheless, growth prospects for e-commerce in India seem challenging. Redseer, a consultancy firm, notes a slowing growth rate in e-commerce gross merchandise value (GMV) after years of robust growth. GMV growth year-over-year slowed to 22% in FY23, reaching $60 billion (₹4,95,121 crore), primarily due to price pressures, fewer online shoppers, and stagnant average spending per shopper.
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