Amazon India has decided to shut down its wholesale distribution operation amid a global effort to wind up its verticals and reduce expenses. This move is the latest in a series of retreats for the e-commerce giant in the key overseas market where it has deployed more than $7 billion in the past decade.
Amazon launched its Distribution service in a bid to empower local Kirana, neighborhood stores in India, pharmacies, and other department stores in the country to secure inventory from the company. Amazon Distribution, which was formerly accessible in some areas of Bengaluru, Mysore, and Hubli, is now being discontinued by the company. Previously, the company shut down its Academy online learning and food delivery platform in the country.
“We don’t take these decisions lightly. We are discontinuing this program in a phased manner to take care of current customers and partners,” a company spokesperson said in a statement. The company didn’t mention exactly when the service will be discontinued or why it was shutting down the wholesale distribution offering.
“We offer a wide range of products at competitive prices and the convenience of next-day delivery at your doorstep. As a member, you can purchase thousands of items for resale at any time of the day at competitive prices and in bulk quantities, pay via the various payment options available, get a GST bill for your order, and convenient and reliable door-step deliveries the next day,” the company describes on Amazon Distribution website.
The series of announcements in India has prompted many experts to speculate that Amazon, which has deployed over $6.5 billion in its local business in the country, is slowly scaling down its operations in the South Asian market. The firm has also seen several of its senior executives depart in recent months.The company has also said that it will continue to focus on its core e-commerce offerings in India. Last week, Amazon launched its second AWS region in India and pledged to invest $4.4 billion in its cloud operations in the country by 2030.
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