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Amazon (AMZN) Deepens Focus on India With Latest Initiative
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Amazon (AMZN - Free Report) continues to make concerted efforts to bolster its footprint in the booming e-commerce market of India.
This is evident from its latest signing of a memorandum of understanding (MoU) with a government of Manipur enterprise — Manipur Handloom & Handicrafts Development Corporation.
With the support of this, the company unveiled Panthoibi Emporium on Amazon.in as part of its Amazon Karigar program.
The company strives to support artisans and weavers of the Manipur state in adopting e-commerce by providing them opportunities to become Amazon sellers, personalized training for a quick start, and marketing aid.
Notably, the Panthoibi Emporium launch will help Amazon empower more than 300,000 such merchants.
We believe that the move will help artisans and weavers to expand their customer reach by going online.
Additionally, by bringing the sellers on its platform, Amazon will be able to offer a variety of products from the underlined state to customers in India. Products will include Manipuri Rani Phee, Kauna Crafts - Water Reed, and food items like black rice, forest forage teas, GI tagged chili, GI tagged lemon and oranges.
The latest move is in sync with Amazon’s deepening focus on bringing women entrepreneurs, local sellers and SMBs online in India by providing them strong e-commerce infrastructure and delivery network via its seller-focused programs. This remains the key catalyst behind its solid seller momentum.
Apart from the latest move, the company recently launched a storefront on Amazon.in, focused on empowering women-owned small businesses. Notably, the storefront showcases several products offered by more than 800 women sellers as well as sellers associated with various organizations promoting women entrepreneurship.
The e-commerce giant unveiled the Smart Commerce initiative to support and accelerate the digitization process of local stores with its new initiative, thus, transforming them into ‘Digital Dukaans.’
Apart from this, the company is enjoying solid momentum across its ‘Local Shops on Amazon’ program, which helps businesses adopt the e-commerce technology. The program allows sellers to expand their customer base beyond their offline capacity.
The increasing number of local sellers on Amazon will help it reach out to customers seamlessly in India, where a chunk of its massive population depends on local shops for essentials.
Amazon has pledged to bring 1 million local offline retailers in the country online via the Local Shops on Amazon program by 2025.
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.
The digital centers are brick-and-mortar resource centers, with the help of which the e-commerce giant encourages micro, small and medium enterprises (MSMEs) to adopt advanced technologies to go online by delivering knowledge, skills and support to the latter.
In addition to these, the company is witnessing growing traction across its ‘Amazon Easy’ and ‘I Have Space’ programs, which are focused on helping local shops expand their reach.
To Conclude
The above-mentioned endeavors are expected to strengthen Amazon’s relationship with SMBs in India. This will continue to bolster the seller base on Amazon.in.
This, in turn, will expand product offerings on the company’s e-commerce platform, which will likely accelerate the shopping rate.
However, Amazon is currently bearing the brunt of inflationary pressure, elevated staffing costs and supply-chain disruptions. Moreover, uncertainties related to the coronavirus pandemic and ongoing tensions between Russia and Ukraine remain overhangs.
A slowdown in online shopping activities compared with the last two years, as a result of normalization toward pre-pandemic levels, is a major headwind.
Zacks Rank & Stocks to Consider
Currently, Amazon carries a Zacks Rank #5 (Strong Sell).
Image: Bigstock
Amazon (AMZN) Deepens Focus on India With Latest Initiative
Amazon (AMZN - Free Report) continues to make concerted efforts to bolster its footprint in the booming e-commerce market of India.
This is evident from its latest signing of a memorandum of understanding (MoU) with a government of Manipur enterprise — Manipur Handloom & Handicrafts Development Corporation.
With the support of this, the company unveiled Panthoibi Emporium on Amazon.in as part of its Amazon Karigar program.
The company strives to support artisans and weavers of the Manipur state in adopting e-commerce by providing them opportunities to become Amazon sellers, personalized training for a quick start, and marketing aid.
Notably, the Panthoibi Emporium launch will help Amazon empower more than 300,000 such merchants.
We believe that the move will help artisans and weavers to expand their customer reach by going online.
Additionally, by bringing the sellers on its platform, Amazon will be able to offer a variety of products from the underlined state to customers in India. Products will include Manipuri Rani Phee, Kauna Crafts - Water Reed, and food items like black rice, forest forage teas, GI tagged chili, GI tagged lemon and oranges.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote
Amazon’s Strong Initiatives
The latest move is in sync with Amazon’s deepening focus on bringing women entrepreneurs, local sellers and SMBs online in India by providing them strong e-commerce infrastructure and delivery network via its seller-focused programs. This remains the key catalyst behind its solid seller momentum.
Apart from the latest move, the company recently launched a storefront on Amazon.in, focused on empowering women-owned small businesses. Notably, the storefront showcases several products offered by more than 800 women sellers as well as sellers associated with various organizations promoting women entrepreneurship.
The e-commerce giant unveiled the Smart Commerce initiative to support and accelerate the digitization process of local stores with its new initiative, thus, transforming them into ‘Digital Dukaans.’
Apart from this, the company is enjoying solid momentum across its ‘Local Shops on Amazon’ program, which helps businesses adopt the e-commerce technology. The program allows sellers to expand their customer base beyond their offline capacity.
The increasing number of local sellers on Amazon will help it reach out to customers seamlessly in India, where a chunk of its massive population depends on local shops for essentials.
Amazon has pledged to bring 1 million local offline retailers in the country online via the Local Shops on Amazon program by 2025.
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.
The digital centers are brick-and-mortar resource centers, with the help of which the e-commerce giant encourages micro, small and medium enterprises (MSMEs) to adopt advanced technologies to go online by delivering knowledge, skills and support to the latter.
In addition to these, the company is witnessing growing traction across its ‘Amazon Easy’ and ‘I Have Space’ programs, which are focused on helping local shops expand their reach.
To Conclude
The above-mentioned endeavors are expected to strengthen Amazon’s relationship with SMBs in India. This will continue to bolster the seller base on Amazon.in.
This, in turn, will expand product offerings on the company’s e-commerce platform, which will likely accelerate the shopping rate.
However, Amazon is currently bearing the brunt of inflationary pressure, elevated staffing costs and supply-chain disruptions. Moreover, uncertainties related to the coronavirus pandemic and ongoing tensions between Russia and Ukraine remain overhangs.
A slowdown in online shopping activities compared with the last two years, as a result of normalization toward pre-pandemic levels, is a major headwind.
Zacks Rank & Stocks to Consider
Currently, Amazon carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the retail-wholesale sector are AutoNation (AN - Free Report) , The Kroger (KR - Free Report) and Solo Brands (DTC - Free Report) . While AutoNation currently sports a Zacks Rank #1 (Strong Buy), Kroger and Solo Brands carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AutoNation has returned 15% over a year. The long-term earnings growth rate for the AN stock is currently projected at 24.74%.
Kroger has gained 43.7% over a year. The long-term earnings growth rate for the KR stock is currently projected at 9.88%.
Solo Brands has lost 74.1% over a year. The long-term earnings growth rate for the DTC stock is currently projected at 16.74%.