Amazon to exit third business in India — wholesale distribution

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The layoffs will affect employees at all levels in the company that employs more than 1.6 million people globally (image: iStock)

Amazon is shutting its wholesale distribution business Amazon Distribution which used to operate in Bengaluru, Hubli and Mysuru in Karnataka.

The announcement came on Monday and comes close on the heels of the closures of its food delivery and online learning platform businesses.

“As part of our annual operating planning review process, we have made the decision to discontinue Amazon Distribution, our wholesale e-commerce website for small neighbourhood stores around Bengaluru, Mysore and Hubli,” Amazon India said in a statement.

“We don’t take these decisions lightly. We are discontinuing this programme in a phased manner to take care of current customers and partners and we are supporting our affected employees during this transition,” it said.

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Through Amazon Distribution, the e-commerce giant used to support the local kirana stores in Bengaluru, Hubli and Mysuru.

Also read: Amazon CEO says layoffs will extend into next year

It offered a wide range of products, especially groceries and stationery, at competitive prices and the convenience of next day delivery at your door-step.

“As a member, you can purchase thousands of items for resale at any time of the day at competitive prices and in bulk quantities, pay via the various payment options available, get GST bill for your order, and convenient and reliable door-step deliveries the next day,” its website said.

Last week, Amazon had announced the closure of its food delivery business in India that it had started in May 2020. This came a day after it shut its edtech vertical.

“As part of our annual operating planning review process, we have made the decision to discontinue Amazon Food,” said a company spokesperson.

Although Amazon has denied massive layoffs in India, a company memo by its CEO Andy Jassy warned of layoffs next year. A number of senior executives have left the organisation in recent months.

According to reports, Amazon is planning to focus on its e-commerce offerings in India, which is a key market for it. It has also pledged to invest $4.4 billion in cloud operations in the country by 2030.

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