Amazon India has reduced its dependence on vendors in which it owns a stake. The e-tailer is now focusing on around a dozen mid-sized, third-party sellers who drive 30 per cent to 33 per cent of its sales in India, up from about 20 per cent earlier.
Unlike in the US, the transition of small sellers independently moving large volumes while maintaining good shopping experience is yet to happen in India and that is why Amazon wants to rely on a few large merchants. The overall volume of sales by these sellers has gone up in the range of six per cent to ten per cent in the recent past as Amazon-backed sellers have tried to curtail their volumes to comply with FDI rules.
India has barred e-tailers from holding stakes in seller entities. Amazon in India has also stopped paying a loyalty bonus to brands who were exclusively selling on Amazon India. New FDI regulations do not allow an e-tailer to ask brands to sell exclusively on one platform. The Amazon marketplace is the largest marketplace in India with over 5,00,000 sellers offering products to customers all over India. Its vision is to enable every motivated seller anywhere in India to reach customers across India and every country in the world.