eCommerce giant Amazon India has announced December 16, 2018, as ‘Small Business Day’, in an attempt to give marketing platform to small businesses in India.
According to Amazon, the event will promote unique and non-branded selection from sellers across the country as part of their initiative to promote small businesses. The Small Business Day offers more market reach and visibility for scores of small businesses, thereby enabling sellers to get a chance to improve their selling performance on Amazon.
Often, small industries find it difficult to compete with large & branded businesses. This move will supposedly boost their revenue, reach and productivity.
Ironically, Amazon is considered to be the biggest threat for small businesses, especially brick and mortar ones who have failed to embrace e-commerce as a critical route to reach their consumers. Amazon has been under fire over the years for killing many small businesses. There is no doubt, Amazon has incredible reach and small businesses are often not able to match their deeper discounts and faster shipping.
This small business day could be an attempt from Amazon’s part to salvage its reputation. Gopal Pillai, the director of Amazon India Seller Services, stated that “This initiative will bring small and micro sellers and customers together to boost India’s local economy”. Huge sales in handicraft items including metal and stone sculptures, jute baskets, silver jewelry, vases made of terracotta, fabrics etc. is expected on December 16th.
Days ahead of the Small Business Day, All India Online Vendors Association (AIOVA) are up in arms against the e-tailers Amazon and Flipkart over the abusive and discriminatory conduct against third-party sellers. AIOVA is pushing for neutral marketplaces and feels that the discriminatory conduct of a dominant player stifles more innovation than regulatory interference.
AIOVA has written a strongly worded letter seeking redressal to Prime Minister of India stating how small players are being exploited by eCommerce platforms like Amazon and Flipkart. Interestingly, Germany’s antitrust authority has launched an investigation into whether Amazon is exploiting its market dominance in its relations with third-party retailers who use its website as a marketplace.
The first-of-its-kind online sale dedicated to small businesses in the country is designed to encourage shoppers to discover and buy products directly offered by micro-entrepreneurs. It is going to be a field day for shoppers as well.