E-commerce giant Amazon is shutting down its wholesale distribution business in India. Called Amazon Distribution, this is the third business that the company is pulling the plug on in India in the past week. The business operates in three cities in Karnataka: Bengaluru, Hubli and Mysore. Amazon Distribution is different from the company’s business-to-business (B2B) ecommerce marketplace Amazon Business, which operates on a marketplace model with third-party sellers.
“As part of our annual operating planning review process, we have made the decision to discontinue Amazon Distribution, our wholesale ecommerce website for small neighborhood stores around Bengaluru, Mysore & Hubli,” read a statement by the company. The statement further added that the company will be discontinuing this program in a phased manner to take care of current customers and partners and that it will be supporting the affected employees during this transition.
“We offer a wide range of products at competitive prices and the convenience of next day delivery at your door-step. As a member, you can purchase thousands of items for resale at any time of the day at competitive prices and in bulk quantities, pay via the various payment options available, get GST bill for your order, and convenient and reliable door-step deliveries the next day,” is how the company describes Amazon Distribution on its website.
Hat-trick of shutdowns
This is the third business that the company has shut this month. Last week, Amazon India decided to shut its food delivery business by the end of the year. Earlier, it said that it is closing its edtech business Amazon Academy. Amazon told its restaurant partners that it will discontinue the services from December 29, 2022.
While the Amazon India marketplace, Amazon Seller Services, was able to cut losses by almost 23% to Rs 3,649 crore in FY22, losses at its other two businesses – payments and logistics – have widened.
Job cuts continue
Earlier this month, Amazon joined the list of companies cutting jobs. The company plans to cut about 10,000 jobs. It has already begun to cut roles in some divisions including devices and services earlier this month. In a memo to employees, Amazon CEO Andy Jassy warned employees that the company may announce more job cuts in 2023.
“As part of our annual operating planning review process, we have made the decision to discontinue Amazon Distribution, our wholesale ecommerce website for small neighborhood stores around Bengaluru, Mysore & Hubli,” read a statement by the company. The statement further added that the company will be discontinuing this program in a phased manner to take care of current customers and partners and that it will be supporting the affected employees during this transition.
“We offer a wide range of products at competitive prices and the convenience of next day delivery at your door-step. As a member, you can purchase thousands of items for resale at any time of the day at competitive prices and in bulk quantities, pay via the various payment options available, get GST bill for your order, and convenient and reliable door-step deliveries the next day,” is how the company describes Amazon Distribution on its website.
Hat-trick of shutdowns
This is the third business that the company has shut this month. Last week, Amazon India decided to shut its food delivery business by the end of the year. Earlier, it said that it is closing its edtech business Amazon Academy. Amazon told its restaurant partners that it will discontinue the services from December 29, 2022.
While the Amazon India marketplace, Amazon Seller Services, was able to cut losses by almost 23% to Rs 3,649 crore in FY22, losses at its other two businesses – payments and logistics – have widened.
Job cuts continue
Earlier this month, Amazon joined the list of companies cutting jobs. The company plans to cut about 10,000 jobs. It has already begun to cut roles in some divisions including devices and services earlier this month. In a memo to employees, Amazon CEO Andy Jassy warned employees that the company may announce more job cuts in 2023.
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