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Amazon (AMZN) Gains SMB Momentum in India via SBD Event

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Amazon (AMZN - Free Report) has experienced robust sales in its Small Business Days (“SBD”) event, which was conducted between Jul 2 and Jul 4 in India.

The event was focused on the upliftment of small and medium businesses (SMBs), who have gained a lot from this event. Above 84,000 SMBs received orders.

There were 1,700 small local shops on Amazon thatwitnessed strong sales of office chairs, inverter and batteries, and Organic Tulsi tea.

There were more than750 sellers on Amazon Launchpad, who witnessed solid sales of dry fruit mix from Nutty Gritties, Asgard face masks and Wingreen’s topping sauces.

There were buyers from more than 20,300 pincodes in India, who purchased several items from the SMBs.

Further, 3,400 and 8,000 products were launched by Karigar sellers and 21 Saheli sellers, respectively.

We note that SBD turned out to be a successful event, which helped SMBs to a great extent after the disruption caused by the 2nd wave of the pandemic in India.

Strong SBD sales are expected to benefit the company’s top line. Amazon’s momentum across SMBs got a boost in the underlined event.

All these bode well for the company’s strengthening efforts toward bolstering its footprint in India.

Efforts for Small & Medium Sellers

The e-commerce giant’s strengthening focus on small and medium businesses in India is likely to continue aiding its presence in the country’s online retail market, which holds promise.

Recently, the company established its first micro small and medium enterprises (MSMEs)-focused digital center called ‘Digital Kendra’ in the country, which is located in Surat, Gujarat.

The Digital Kendras are brick-and-mortar resource centers, with the help of which the e-commerce giant strives to encourage MSMEs to adopt advanced technologies to go online by delivering knowledge, skills and support to them.

The company announced an investment of $1 billion in India at the Smbhav summit in New Delhi in 2020.

With the $1-billion investment, the e-commerce giant aims at building digital centers in 100 cities and villages of India. We believe that the proposed digital centers will help more than10 million SMBs to come online.

The investment is focused on making exports of products made in India worth $10 billion by 2025. Last year, the volume exceeded the $2-billionmark.

Amazon continues to prosper in the e-commerce market of India on the back of its expanding SMB network, which forms a major part of India’s corporate sector.

Amazon’s Efforts in India

Apart from the commitment of a $1-billion investment, the company has made notable efforts, whichwill benefit its e-commerce business in India.

It is looking to venture into the multi-billion-dollar alcohol-delivery market in the country. The retail giant has already secured a clearance to carry out the online retail tradeof liquor.

The company’s launch of MiniTV, which is only available to audiences inIndia, remains noteworthy. MiniTV is a freely accessible and ad-supported streaming service on Amazon's shopping app for Android users. With this, the Amazon shopping app has become a one-stop destination, wherein customers can shop thousands of products, make payments and enjoy the MiniTV video-streaming service.

Amazon acquired Perpule, which provides mobile payment devices to offline retailers in order to help them accept digital payments. On the back of thebuyout, Amazon will be able to gain strong momentum among India offline retailers by helping them boost their customerreach through digital payment acceptance.

Zacks Rank & Stocks to Consider

Currently, Amazon carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the retail-wholesale sector are Revolve Group, Inc. (RVLV - Free Report) , Dollar General Corp. (DG - Free Report) and Walmart (WMT - Free Report) . All three stocks carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth ratesfor Revolve, Dollar General and Walmart arep egged at 12%, 17% and 4.95%, respectively.