Amazon is targeting merchandise exports worth $20 billion from India by adding thousands of small sellers to its e-commerce platform, a company official said on Friday. The US technology giant’s business-to-consumer exports platform, launched in 2015 with a few sellers, now has more than 100,000 Indian manufacturers and suppliers offering a wide range of products to overseas customers. Some of these sellers are first-time exporters who have experienced 70% business growth annually on the platform, which offers logistics support and access to 200 million Amazon Prime members globally.
The company has rapidly grown in categories like beauty, apparel, kitchen and home appliances, fur, nature, and toys. It will launch new categories in the coming months, including organic health supplements and homewares. The firm has also been ramping up its grocery delivery network. The firm is investing in electric rickshaws to power its delivery operations nationwide. It plans to expand the number of such vehicles by the end of 2022.
It will also invest in expanding its presence in markets like Germany and the UK. It said its logistics operations in these countries are growing faster than its North American operations. The company is also focusing on improving its technological measures to reduce counterfeit sales and cybercrime and to increase the safety of its customers’ information. It has already started using California-based self-driving tech startup Zoox for its global efforts in this area.
However, a series of controversies has plagued the company’s image, and its limited presence outside the United States is a concern. The company faces regulatory issues in some critical markets, including a ban on shipping goods to Cuba, Iran, Sudan, and North Korea. It has also been accused of maintaining supply chains and labor sources associated with human rights abuses. It has been facing scrutiny for data privacy issues in its Ring video doorbell and home security cameras.
The company has been working to rebut these concerns and is repositioning its business in the wake of these challenges. For example, it is reducing its reliance on the US and enhancing its market presence in other regions, such as China and India, to improve margins. It is a strategy that could help the company make more aggressive investments. However, there are a few hurdles to overcome before the company can achieve its goals, such as resolving tax issues and opening physical stores. It must also address cybersecurity threats and improve its logistical capabilities, such as accelerating deliveries and optimizing infrastructure. These challenges are a significant barrier to Amazon’s success in the long run.
Nonetheless, the company has plenty of potential to continue its growth trajectory. The company’s stock has gained about 12% this year, with a market cap of about $26 billion. Its shares closed at $717 on Friday.