Amazon India is gearing up to work with local shops and retailers to sell groceries in its upcoming project. The target is to involve local shopkeepers into the online market and thus, Amazon might have a fair chance to give a new direction to seller relationships.

The world’s largest e-commerce giant is marketing the new program as “Local Shops on Amazon’. The company will target the local shopkeepers and retailers who sell groceries, electronics, apparel, furniture, home furnishings, bakery, flowers, and a similar range of products. This will cover over 5000 local shops from over 100 cities across the country.

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The project has been in pilot mode for six months in which Amazon will invest Rs. 10 crores. The major challenge in front of American MNC is to encourage and train retailers who have null exposure in selling online. Amazon India’s VP of seller services said, “The program helps customers discover products from local shops in their city from the convenience of their homes and helps shopkeepers supplement their footfalls with a digital presence and expand beyond their normal catchment.”

Key features of ‘Local Shops on Amazon’ project:

  • India will be the first market for Amazon’s new business model.
  • Local vendors will be the ones to sell in their own city, targeting their own customers. This should reduce conflict between online and offline channels.
  • The program is an eminent step to procure social distancing amid coronavirus pandemic.

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Since COVID-19 has shaken the global economy, experts have realized that local business is the key factor to keep the game on. A couple of days back, Facebook bought a 9.99% share of Reliance Jio worth $5.7 billion (Rs. 43,574 Crores) aiming to aggregate local vendors to expand JioMart in India.

Looks like we will soon enter a new phase of e-commerce in India, a very exciting one at that.


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