Amazon India has now decided to shut down its wholesale distribution business ‘Amazon Distribution’ in the country. The company operates Amazon Distribution from multiple locations in Karnataka – Bengaluru, Mysuru, Tumkur, Hubli, and Mandya.
“As part of our annual operating planning review process, we have made the decision to discontinue Amazon Distribution, our wholesale ecommerce website for small neighbourhood stores around Bengaluru, Mysore and Hubli,” the company said in a statement.
Amazon Distribution is Amazon’s separate e-commerce portal for Kiranas, Department stores, Pharmacies, and other resellers. This is a members-only app and website where the company provides products at competitive prices with a promise of next-day delivery. For being a member of Amazon Distribution, one needed a valid business license.
This is the third business that Amazon has decided to shut down. The company has already announced that it is shutting down Amazon Academy and Amazon Foods.
Not many people know about Amazon Distribution. This was also the case with Amazon Academy and Amazon Foods. This is the reason these service didn’t have enough users. Amazon slowly began opearting in different verticals but didn’t spend enough in marketing. The company primarily advertise its ecommerce business and AWS. Now when the company is in crisis, it is shutting down all the businesses that don’t have enough users.
Amazon India has invested $6.5 billion in the Indian market to date but the performance is still mixed. The company is still far from being close to profitable. Now when the market is down. Amazon India has decided to focus on its core business. The company has promised that it will continue to invest in its core eCommerce business.
