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Amazon's (AMZN) Solid Export Momentum Boosts India Prospects
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Amazon (AMZN - Free Report) continues to prosper in the e-commerce market of India on a growing number of exporters via its export program called Global Selling. The program has become the key catalyst behind the expanding export volume of sellers on its online retail platform.
Notably, the number has now exceeded the mark of one lakh, which is not only a huge achievement for the company but also beneficial to its wide range of customers. The number reflects growth of 30% from January 2020.
Sellers in India, especially small and medium businesses (SMBs), get the opportunity to sell their products in more than 200 countries, thus expanding their customer reach in the international market.
We note that the export volume via Amazon’s platform has now cumulatively exceeded the mark of $3 billion, which remains noteworthy.
This can be attributed to aggressive retail strategies, deepening focus on digitization, and, most importantly, solid momentum across SMBs.
All these have not only helped Amazon in expanding the business in India but also accelerated sales growth of the country’s SMBs by bringing them online.
Amazon’s deepening focus toward bringing local sellers and SMBs online in India by providing them with a strong e-commerce infrastructure and delivery network via its seller-focused programs remains the key catalyst behind its solid seller momentum.
The strengthening momentum of the company’s ‘Local Shops on Amazon’ program, which helps businesses adopt the e-commerce technology, remains a major positive. The program allows sellers to expand their customer base beyond their offline capacity.
Amazon has pledged to bring 1 million local offline retailers in the country online via the Local Shops on Amazon program by 2025. The increasing number of these sellers on Amazon will help it reach out to customers seamlessly in India, wherein a massive population depends on local shops for essentials.
Apart from the program, the e-commerce giant’s $1-billion investment announcement remains noteworthy. With the investment, it aims to build digital centers in 100 cities and villages of India. The proposed digital centers will likely help more than 10 million SMBs come online. Further, the investment is focused on exporting products made in India worth $10 billion by 2025.
The digital centers are brick-and-mortar resource centers, with the help of which the e-commerce giant encourages micro, small and medium enterprises to adopt advanced technologies to go online by delivering knowledge, skills and support to the latter.
The increasing adoption of Amazon’s Seller App in India remains another positive.
We believe that these endeavors will continue to strengthen Amazon’s relationship with sellers in India, which, in turn, will bolster the seller base on Amazon.in.
Image: Bigstock
Amazon's (AMZN) Solid Export Momentum Boosts India Prospects
Amazon (AMZN - Free Report) continues to prosper in the e-commerce market of India on a growing number of exporters via its export program called Global Selling. The program has become the key catalyst behind the expanding export volume of sellers on its online retail platform.
Notably, the number has now exceeded the mark of one lakh, which is not only a huge achievement for the company but also beneficial to its wide range of customers. The number reflects growth of 30% from January 2020.
Sellers in India, especially small and medium businesses (SMBs), get the opportunity to sell their products in more than 200 countries, thus expanding their customer reach in the international market.
We note that the export volume via Amazon’s platform has now cumulatively exceeded the mark of $3 billion, which remains noteworthy.
This can be attributed to aggressive retail strategies, deepening focus on digitization, and, most importantly, solid momentum across SMBs.
All these have not only helped Amazon in expanding the business in India but also accelerated sales growth of the country’s SMBs by bringing them online.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote
Amazon’s Efforts for Gaining Seller Momentum
Amazon’s deepening focus toward bringing local sellers and SMBs online in India by providing them with a strong e-commerce infrastructure and delivery network via its seller-focused programs remains the key catalyst behind its solid seller momentum.
The strengthening momentum of the company’s ‘Local Shops on Amazon’ program, which helps businesses adopt the e-commerce technology, remains a major positive. The program allows sellers to expand their customer base beyond their offline capacity.
Amazon has pledged to bring 1 million local offline retailers in the country online via the Local Shops on Amazon program by 2025. The increasing number of these sellers on Amazon will help it reach out to customers seamlessly in India, wherein a massive population depends on local shops for essentials.
Apart from the program, the e-commerce giant’s $1-billion investment announcement remains noteworthy. With the investment, it aims to build digital centers in 100 cities and villages of India. The proposed digital centers will likely help more than 10 million SMBs come online. Further, the investment is focused on exporting products made in India worth $10 billion by 2025.
The digital centers are brick-and-mortar resource centers, with the help of which the e-commerce giant encourages micro, small and medium enterprises to adopt advanced technologies to go online by delivering knowledge, skills and support to the latter.
The increasing adoption of Amazon’s Seller App in India remains another positive.
We believe that these endeavors will continue to strengthen Amazon’s relationship with sellers in India, which, in turn, will bolster the seller base on Amazon.in.
Zacks Rank & Stock to Consider
Currently, Amazon carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the retail-wholesale sector are AutoNation (AN - Free Report) , Target (TGT - Free Report) and Tractor Supply Co. (TSCO - Free Report) . While AutoNation and Target currently sport a Zacks Rank #1 (Strong Buy), Tractor Supply carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
AutoNation has returned 25.9% over a year. The long-term earnings growth rate for the AN stock is currently projected at 23.55%.
Target has gained 14.2% over a year. The long-term earnings growth rate for the TGT stock is currently projected at 16.52%.
Tractor Supply has gained 32.4% over a year. The long-term earnings growth rate for the TSCO stock is currently projected at 9.77%.