As India’s B2B ecommerce market races toward a projected $200 billion by 2030, Amazon Business is emerging as a key enabler for the country’s micro, small, and medium enterprises (MSMEs), offering digital tools to streamline procurement, improve compliance, and ease credit access.
Launched in India in 2017, Amazon Business now supports over 1.6 million sellers. It says it helps many overcome traditional hurdles such as fragmented supplier networks, opaque pricing, and cumbersome ordering processes.
“Procurement often feels like navigating a maze for MSMEs due to multiple vendors, inconsistent pricing, and lengthy processes,” said Mitranjan Bhaduri, director at Amazon Business, in an interview with The Economic Times. “Even MSMEs in remote areas can now access everything from seedling trays to cleaning products via our platform.”
How Amazon Business is growing in India
A significant share of Amazon Business’s growth is coming from India’s smaller towns. Around 31.5% of sales now originate from Tier 2 and below. Tier 2 represents cities in India with 50,000 to 99,000 people. It designed tools such as B2B Central — which enables bulk order management, real-time tracking, and price negotiation — to remove friction from the B2B buying process.
The company’s expansion dovetails with the Indian government’s broader Digital India mission, launched in 2015 to build digital infrastructure, expand access to online services, and enhance digital literacy. Reflecting this push, Amazon Business now supports voice-enabled shopping in seven Indian languages. It also reports that 65% of its orders come from mobile devices — particularly in non-metro markets.
To address tax compliance, the platform offers automated monthly GST reports and document consolidation, simplifying the filing process for MSMEs managing multiple suppliers. It also tackles liquidity issues through Amazon Pay Later, providing eligible businesses with 30-day interest-free credit and flexible repayment plans of up to 12 months.
Looking ahead, Amazon Business plans to expand its product catalogue, enhance delivery speed, and deploy AI for better pricing optimization.
“Our goal is to empower MSMEs to scale faster and more efficiently in a digital-first economy,” Bhaduri said.
India’s 63 million MSMEs contribute 30% of the country’s GDP.
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