(MENAFN- KNN India) Amazon, the Seattle based ecommerce giant, will test it's pilot service in Bengaluru of inviting small and medium businesses to procure supplies from a new website starting this week.
It will allow registered members at the website to buy a variety of products viz., office, kitchen and home supplies, health and personal care products along with food and beverages. With a minimum order value of Rs 1,000. Amazon will negotiate wholesale rates directly with manufacturers and sell to its members.
Since amazon is launching a members-only website, it means initially small and medium businesses have to be invited by the company to trade online. This comes in the wake of the Chinese rival Alibaba, regarded as the pioneer in this category, is expected to begin operations in the domestic market.
The website is expected to go live in the second half of May and will be will mostly be modelled on AmazonSupply. Also, The model is government-approved and a great opportunity for Amazon. Anyone with a valid business licence-kirana stores, hospitals, schools and home entrepreneurs will be taken onboard online.
According to EY's estimate a need to keep a strict vigil to ensure that only businesses are transacted on its website, while also offering flexible payment methods could be a challenge, as businesses are not used to net banking or paying by credit cards. (KNN/SS)
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