Amazon is a multinational organization founded by Jeffrey Preston Bezos and based in Seattle, Washington. It is a huge internet company that sells books, music, clothing, electronic gadgets, games and many more. Amazon is a bridge between sellers and consumers.
Amazon made shopping a one-click thing.
The company started out by selling books online to put all readers at ease, but now you can find ‘n’ many products on amazon, from electronics to toys, groceries to home decor. The company made the changes that would have taken years to happen without amazon.
The business is a successful e-commerce platform because there is the supply of the product by the sellers, and there is the demand from the consumer who is the buyer. To support buyers, amazon is happy to present offers to them, which has attracted millions of customers. But to keep the community of sellers, amazon has now contributed to SMEs.
SMB stands for Small and Medium-size Bussiness, which has created its own virtual storage space on amazon to reach hundreds of millions of people, grow its brands and grow its business. SMEs have fewer than 250 employees in the company or a startup.
They take a long time to develop, but they have a powerful impact in the market because they reach a huge audience in a very practical way. SMB can identify market gaps and strive to fill those gaps by supplying its product. Their strategies in the market make them attractive and easier to reach an audience out loud.
In this digital engulfed world, many SMEs have registered with the company to sell their product online. Selling a product online with amazon is much easier than selling it online without any external help. So, to showcase their product online, many small businesses use amazon to reach a large customer base and increase their chances of growth.
There are around 8.5 lakh sellers to sell their products. In the SME Impact Report 2020, Amazon India realizes that it has more than 10 lakh of SMEs from various business segments such as delivery, logistics, vendors, enterprises, content curators, developers and authors nationwide.
In this time of pandemic where SMEs are struggling to survive, the company is going the extra mile to help them survive and thrive in the market. With regular assistance in terms of logistics, tools, services, programs to help develop their business. Provide help on basic data analysis tools and information to better understand and reach their customers.
The company has now decided to waive the 50% fee. When a seller registers the business on Amazon, Amazon charges referral fees and FBA or shipping fees for each product. Referral fees depend on price and individual product. So when a seller uploads the product, they have to pay amazon certain amount of money.
This is great news for all sellers that Amazon is waiving 50% of the “Sell on Amazon” or referral fee. The measure will be implemented from May 1 to May 31 for some sellers. Additionally, Amazon will initiate reimbursement of storage and more extensive storage costs to merchants focused on unusable PINs for the retention of vendor merchandise in its warehouses.
Amazon India Vice President Manish Tiwary expressed the need for this measure. In this situation, we understood that small and medium-sized enterprises (SMEs) are impacted at a significant level. We are taking all kinds of measures to help sellers survive this economic challenge during the pandemic.
The company is continually taking further action to mitigate the negative effect on seller performance metrics due to pandemic failures and resulting health limits on the seller’s account.
There are lockdowns in key Indian states affected by the second wave of COVID-19, and significant precautions have been taken in those states. Many states have approved and licensed the distribution of essential items, such as food and medicine, to e-commerce businesses. In such a scenario, SMEs find it difficult to activate their account and deliver their product to the consumer.
We hope to see measures from other e-commerce organizations to strengthen India’s SMEs.
Article reviewed and edited by Shreedatri Banerjee