In the most recent series of retreats for the retailer in the key overseas market where it has deployed over $7 billion in the past decade, Amazon is all set to shut down its wholesale distribution business in India.
On Monday, the American e-commerce behemoth said that it is discontinuing Amazon Distribution, its wholesale e-commerce website available to small neighborhood stores in Bengaluru, Mysore and Hubli.
A company spokesperson said in a statement, “We don’t take these decisions lightly. We are discontinuing this programme in a phased manner to take care of current customers and partners.”
The website designed to facilitate the small kirana stores in Indian neighborhoods, pharmacies and department stores to secure inventory from the e-commerce giant. The company didn’t specifically mention when the service will be discontinued.
On the website itself, the company describes, “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.”
The company did not specify the reason as to why it was shutting down the wholesale distribution offering, but the move comes after the shutting down of two other businesses — food delivery and online learning platform Academy — in the country in the middle of global restructuring of its business. According to media reports, Amazon is planning to lay off about 10,000 jobs. It already started eliminating roles in some divisions, including devices and services earlier this month. The closure of the above mentioned Indian businesses also involves elimination of some roles.
In a memo, Amazon chief executive Andy Jassy cautioned employees that the company will carry out more layoffs next year.
According to a source familiar with the matter, Amazon plans to continue to focus on its core e-commerce offerings in India.
