Ease of doing business for MSMEs: An Amazon Seller Report 2022 launched by financial technology company Payoneer and e-commerce analytics platform SellerApp has reported marketing and supply chain-related issues among “India’s main weakness in cross-border trade”. 35 per cent of sellers cited marketing as the top issue followed by 28 per cent who noted supply chain-related challenges. Another 24 per cent claimed issues around multi-regional regulations while 12 per cent cited banking and payments-related concerns.
According to a statement by Payoneer on May 18, the data was based on sellers currently associated with the SellerApp platform where the overall public data of the seller is considered to formulate trends around e-commerce selling and Amazon. Certain data points were also based on a closed survey of cross-border e-commerce sellers.
The report said 86 per cent of Amazon sellers reported an increase in earnings since the start of the pandemic while over 73 per cent of Indian sellers were considering the United States for their planned cross-border trade expansion.
Importantly, Amazon had launched its Global Selling programme in India in 2015 to help Indian exporters sell online to Amazon’s international websites and marketplaces. Currently, over 1 lakh exporters from India are part of the programme and MSMEs exporting through the programme have surpassed $5 billion in cumulative sales.
Last year in May, the company had announced doubling its cumulative export target of ‘Made in India’ goods from MSMEs under its global selling programme to $20 billion by 2025 from an earlier $10 billion target announced in 2020.
According to the report, 70 per cent of sellers claimed quality to be the top factor that makes Indian e-commerce exporters successful followed by pricing according to 20 per cent sellers, logistics support by 5 per cent, government subsidies by 4 per cent and marketing by 1 per cent.
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The total number of sellers on Amazon globally was nearly 9.7 million with 1.9 million active sellers on the marketplace in 2022, the statement said citing the latest report from the company. Moreover, more than 2 million third-party sellers were on the platform and 63 per cent of total sellers were small and medium businesses, accounting for around 60 per cent of retail sales.
As per the report, 76 per cent of Amazon sellers were profitable. The sellers contributed to a whopping 22 per cent of Amazon’s total revenue. In terms of categories, home & kitchen was the top-earning category with $29.3 billion in revenue, followed by electronics with $17.1 billion, and clothing, shoes, and jewellery with $17.1 billion.
