Amazon Business, the B2B wing of e-commerce giant Amazon, witnessed a major shift in customer acquisition trends in 2024. According to a senior company executive, 70% of its new customers this year came from India’s tier-2 and smaller cities — a strong indicator of rising digital adoption among businesses outside major metros.
Launched in India in 2017, Amazon Business serves as a dedicated marketplace where enterprises can buy and sell products. Speaking with a new agency, Mitranjan Bhaduri, Director at Amazon Business, shared that the platform is continuously being improved through better product assortment, quicker deliveries, and features like GST-compliant consolidated invoices — aimed at attracting a broader business base.
“We are consistently working on improving the assortment, reducing delivery time and introducing new features like GST-compliant consolidated invoices, to get more businesses to shop from the platform,” said Bhaduri.
Amazon Business currently offers over 190 million products listed by more than 1.6 million sellers. The platform has recorded strong order growth — with a Compound Annual Growth Rate (CAGR) of 50% over the past five years, and even higher growth during Q1 2024.
“In the last five years, the number of orders placed on Amazon Business have grown at a CAGR of around 50%,” said Bhaduri.
Another notable shift is the increasing demand for one-day deliveries, which surged by 60%, suggesting that B2B customers are now expecting the same convenience as regular retail shoppers.
According to Bhaduri, banks, IT firms, and service companies form the largest customer base, frequently purchasing printers, laptops, and desk organisers. Manufacturing companies follow closely behind, with education and healthcare sectors also seeing a significant uptick in order volumes in recent quarters.
Amazon Business has integrated Amazon Pay Later, providing businesses with 30-day interest-free credit, which helps with cash flow management.
“The main aim of the platform currently is to simplify how MSMEs, as well as large companies, procure their goods in the country,” he explained.
A recent India Brand Equity Foundation (IBEF) report forecasts that the B2B e-commerce sector in India could grow into a $200 billion market by 2030.
Bhaduri credited features such as spend analytics and custom delivery options as key differentiators for Amazon Business in a competitive market.
“If Amazon can faithfully keep solving for customer needs the way it has been, I am very optimistic that they will continue to reward us with their trust,” Bhaduri concluded.
The remarkable growth of Amazon Business in 2024 — with 70% of new customers coming from tier-2 and smaller Indian cities — highlights the digital transformation sweeping across India’s business ecosystem. By focusing on MSMEs and expanding its reach beyond metros, Amazon is enabling businesses of all sizes to access a vast range of products, faster deliveries, and financial tools like Amazon Pay Later.
Features such as GST-compliant invoicing, spend analytics, and one-day delivery options have further positioned Amazon Business as a reliable and efficient procurement partner. With over 190 million products and a seller base of 1.6 million, the platform is scaling rapidly, reflecting the growing confidence among enterprises in digital B2B solutions.
As the Indian B2B e-commerce market heads toward a $200 billion valuation by 2030, Amazon Business appears well-positioned to lead this charge — simplifying procurement and empowering businesses in every corner of the country. The future of B2B is undoubtedly digital, and increasingly local.