Amazon Business Saw 70% Increased MSME Buying Despite COVID-19; Releases Key Stats for 2020

·2-min read

With 2020 coming to a close, Amazon Business on Monday revealed how MSME buyers leveraged Amazon Business throughout the troublesome year to cater to their distinct procurement and business needs. The Amazon report said that medium and small enterprise (MSME) buyers enjoyed a year of savings, top deals, and the widest selection of GST-enabled commercial products via Amazon Business, especially with the disruption caused due to the COVID-19 pandemic.

Peter George, Director at Amazon Business said, "As we close out a challenging year, our effort has been to serve and help the MSME community ramp up their business faster by helping them become more efficient with their buying process, improve savings and drive profitability. We are grateful to our MSME customers who trusted Amazon Business for all their purchase requirements." The report said that Amazon Business saw an over 90 percent increase in customer based since last year, and a 70 percent increased buying as compared to last year (2019). Further, the company said that it witnessed a 35 percent increase in monthly active users since last year, and witnessed 65 percent increase in total orders as compared to 2019. Sales for Amazon Business increased 85 percent over last year, and it saw a 95 percent increase in bulk orders year-on-year and a 100 percent increase in bulk orders.

Further, the Amazon Business report said that over 25 percent of orders came from tier 2 and tier 3 markets, which saw a 70 percent spike in sales compared to 2019. Over 30 percent of the customer base now belongs to Tier 2 and tier 3 markets, Amazon said.

Further, the company said that sellers were the backbone of Amazon Business's success. The company saw a 25 percent increase on the total number of sellers on Amazon Business as compared to last year. Over 20 percent more sellers received an order as compared to 2019 and over 25 percent more sellers made it to the Crorepati club as compared to 2019. Amazon also launched specially curated COVID-19 store to help its healthcare customers and frontline workers. The COVID store received over 15 percent contribution from bulk orders. Amazon Business also saw a 90 percent increase in healthcare customers and 60 percent increase in healthcare orders.

To cater to the pandemic induced Work From Home situation, Amazon launched stores to meet the changing purchase demand from MSMEs. The Work from Home store received orders from across the country. Further, the company said that it saw heightened interest in the corporate gifting store with a 65 percent year-on-year increase in orders.

Amazon released a slew of statistics for Amazon Business this year, that shed light on several factors that helped Amazon Business witness a successful 2020 despite the supply chain constraints that came with the COVID-19 pandemic.