After a decade in India, Amazon has amassed 12 lakh sellers, digitized 40 lakh SMBs, facilitated $5B in exports, and encountered a few challenges. 

After a decade in India, Amazon has experienced significant growth. The company began operations in 2013 with just 100 sellers and a limited product selection, but it now boasts over 12 lakh sellers and over 40 lakh small businesses, the majority of which are MSMEs. In 2015, the company launched its Global Selling program to enable Indian exporters to sell to Amazon’s international marketplaces, and over 1 lakh exporters have participated in the program. MSMEs using the program have generated more than $5 billion in cumulative sales, resulting in the creation of over 11 lakh direct and indirect jobs. 

In May 2022, Amazon announced its intention to double its cumulative export goal of ‘Made in India’ goods from MSMEs to $20 billion by 2025. In addition, the company’s digital payments solution, Amazon Pay, has more than 85 lakh small business merchants and more than 8 crore customers using Amazon Pay UPI. 

Amazon’s cloud computing subsidiary, Amazon Web Services (AWS), has also invested heavily in India, with more than $3.7 billion invested between 2016 and 2022. In March this year, AWS launched the AWS Lift for SMEs program as part of its mission to digitize small businesses in India. AWS’s Asia Pacific (Hyderabad) Region, launched in 2022, is expected to create more than 48,000 full-time jobs annually through an investment of over $4.4 billion in India by 2030. Credit to sellers remains an issue for Amazon in India, as the company cannot offer financing through Amazon Lending due to licensing constraints. 

Although Amazon has seen significant success in India, it has faced challenges as well. The company has been criticized for alleged unethical business practices, regulatory compliance issues, and competition from companies like Reliance and Meesho. Additionally, Amazon has shut down several businesses, including Cloudtail, its key seller, its food delivery business, edtech venture Amazon Academy, and Amazon Distribution. 

Despite the challenges, Amazon remains committed to innovating for Indian customers and sellers and aligning with India’s goal of becoming a $5 trillion economy by 2025.

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