Sadie Keljikian, Stern Corporate Services Group
Amazon, famous for its remarkably low prices and numerous vendors, has found a new source of low-priced goods: independent vendors in India.
Amazon recently began recruiting numerous vendors from India, since it is an excellent resource for high quality, low priced goods. Allowing vendors in India to sell their goods directly on Amazon also bypasses many of the usual importing costs associated with goods from factories in India to retailers in the US, making the goods even less expensive, which is crucial to success in the US Amazon market.
Meanwhile, Amazon benefits enormously from the arrangement as well. Vendors based outside the US are especially inclined to take advantage of many of Amazon’s vendor services, since they need warehousing, on-site advertising and delivery service for goods sold and distributed in the US.
Many of the businesses selling on Amazon, particularly those based outside the US, are striving to find a specific niche to avoid being lost in the sea of options. One such company is Rajlinen, which produces luxury cotton bedsheets custom made to fit unusually proportioned beds in recreational vehicles. Although founder Krishna Murari has never seen an RV, he learned about the structure of RV-beds from an American manufacturer and has since used the niche to supplement his income from low-priced regular bedding and keep his workforce of 115 employed.
Amazon CEO Jeff Bezos is enthusiastic about India’s potential and has said that he plans to spend $5 billion to build up operations.