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Amazon’s B2B Arm Now Open For Business In India and Japan

By Steve Murphy
October 5, 2017
in Analysts Coverage
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Business-to-business e-commerce is transforming corporate procurement by giving organizations digital access to a broader range of suppliers, competitive pricing, and streamlined purchasing workflows. As businesses increasingly shift procurement online, marketplace providers are expanding globally to meet demand with localized payment options, financing, and supplier networks. Amazon Business reflects this evolution, extending digital procurement capabilities into new international markets while helping organizations simplify purchasing and improve operational efficiency.

In the rising trend of corporate procurement migration to online channels, Amazon continues its expansion outside the U.S. with launches in India and Japan. That puts the marketplace giant in 5 global markets already for the B2B marketplace. The corporate buyers can pay with cards, C.O.D. or even an Amazon B2B gift card. There are separate portals for buyers and suppliers.  A seemingly unique feature for India is that retailers can also stock up through the site.  Registered buyers in Indiaalso have the ability to obtain credit through an Amazon bank partner ICICI.

Manish Tiwary, a vice president of Amazon India, which operates the retail site Amazon.in, says on the India-based business news site LiveMint.com that Amazon Business has learned from the more than 200,000 sellers on Amazon.in that they also need an online marketplace to buy what they need to operate their businesses. “What we’ve gathered is that lots of small businesses struggle to meet their procurement needs,” Tiwary says.

In addition to local competitors in both Japan and India, Amazon faces off with the Chinese markeplace giant Alibaba.  We have been tracking the progress of this channel and believe the upside is quite substantial, with a mobile angle gaining momentum.

The continued global expansion of B2B e-commerce highlights the growing demand for digital procurement platforms that combine purchasing, payments, and financing into a single ecosystem. As companies modernize their procurement strategies, solutions like Amazon Business are well positioned to support organizations seeking greater efficiency, supplier choice, and flexibility across international markets.

Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group

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