Amazon India‘s enhanced focus on its business to business (B2B) platform, by increasing supply to sellers on its consumer marketplace, enabled the company to boost Amazon Wholesale’s revenue by 73% to touch ₹12,224 crore in FY18.
The company saw its wholesale business pick-up after the Indian regulations, in early 2016, limited sales from a single seller to 25% of the total gross merchandise value (GMV) of the marketplace.
The wholesale revenue rose exponentially in FY17 to ₹7,047 crore, from a mere ₹2.6 crore in FY16.
Apart from Amazon, its e-commerce rival in India, Walmart-owned Flipkart‘s wholesale unit Flipkart India saw revenues rise to ₹21,600 crore, growing by 40% during FY18.
Post regulatory changes in 2016, Amazon’s main seller Cloudtail saw its growth stagnate, as the wholesale business started to pick-up. After a 300% revenue growth in FY16, Cloudtail saw its revenues grow at 24% and 27% in FY17 and FY18, respectively. The revenues touched ₹7,149 crore in FY18.
Amazon also partnered with Patni Group, to launch another seller entity called Appario Retail, to further boost sales. Appario Retail clocked ₹759 crore in revenue in FY18.
Amazon continues to aggressively strengthen its business in India and continues to infuse fresh capital, as it battles with Flipkart for market domination.
Earlier this month, it was reported that Amazon pumped in ₹220 crore in its digital payments arm Amazon Pay, which competes with other digital payment giants like Paytm, Flipkart-owned PhonePe, and Google Pay.