E-commerce giant Amazon on Wednesday announced that its cumulative exports from India will exceed $8 billion in 2023, and it is on track to achieve its goal of exports of $20 billion by 2025. The company achieved export value worth $5 billion in 2022.
“We are really encouraged by the growth we have seen so far, with exports reaching over $5 billion by mid-2022 and $8 billion by the end of 2023. We are just getting started. I believe that. The momentum is there,” Bhupen Wakankar said. , Director of Global Trade, Amazon India.
Click here to follow our WhatsApp channel
Amazon, which started exporting from India seven years ago, needs to more than double its exports by 2025 to reach its ambitious $20 billion goal.
The announcement comes shortly after American retail giant Walmart announced that its total procurement from India over 20 years exceeded $30 billion. Walmart currently aims to raise $10 billion annually by 2027.
On competition, Wakankar said, “We are customer-focused and not about competition. The entry of more players will benefit the seller ecosystem. We all We are working on this issue.”
In line with the company's vision to boost domestic exports, Amazon announced the winners of the third edition of the Propel accelerator program, namely Mirana Toys, Avimee Herbal, and Perfora.
Typically a 16-week program, the Propel program has been extended to one year. This year's finalists included 47 brands from across the country, up from 15 brands from the previous year. The program provides winners with equity grants worth $100,000, $1 billion worth of AWS credits, and extensive mentorship from industry veterans and Amazon experts.
Amazon's fastest-growing export categories include toys, household goods, kitchenware, beauty products, furniture, and luggage. Wakankar added that other products such as leather products and Ayurvedic products are also gaining traction.
The US remains Amazon's largest export market in India, along with markets such as the UK, Canada, Japan and Germany.
The company's flagship sale event held in 2023 was fruitful for exports from the country.
“Indian sellers participated in three major sales events – Prime Day in July, Prime Fall Day in October and Black Friday sale in November.Growth of 40-70 per cent, depending on the category. We recorded 100 per cent year-on-year growth in several categories,” Wakankar said.
Last year, Amazon announced several partnerships with central and state governments to boost exports and plans to double down on the sector.
In November last year, Amazon signed a memorandum of understanding (MoU) with the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, to jointly create capacity-building sessions, trainings, and workshops for MSMEs in 75 identified districts. By DGFT.
At the fourth edition of the company's flagship event, Smbhav Summit, held in August last year, the company signed a memorandum of understanding with India Post on integrated cross-border logistics solutions to boost India's exports. The company was also one of the first e-commerce companies to leverage the railway's Dedicated Freight Corridor (DFC) for quick delivery of goods.
“In cross-border logistics, we currently offer full container and partial container maritime services from India. We currently offer air services with multiple airlines. We will continue to build as well,” Wakankar said.
Wakankar said the company is focused on improving its technology stack.
“Market intelligence is an area where we continue to make significant investments, especially when it comes to areas like machine learning and generative AI,” he said.
