What is Amazon's SmartBiz initiative in India?

SmartBiz is a free tool provided by Amazon India that allows sellers to build their own independent D2C websites without needing to code.

What are the potential risks for Amazon with the SmartBiz program?

Amazon risks losing substantial revenue from marketplace commissions and advertising, with an estimated annual impact of ₹1,000-1,500 crore.

How does Amazon plan to monetize SmartBiz in the future?

Amazon plans to introduce a paid subscription model for SmartBiz after March 2026, with anticipated competitive pricing.

Home / Business and Economy / Amazon India Builds D2C Future, Risks Marketplace

Amazon India Builds D2C Future, Risks Marketplace

26 Jan

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Summary

Amazon offers free websites via SmartBiz to Indian sellers.
This move risks marketplace commissions and ad revenue.
Amazon aims to be the logistics and payment provider for D2C.

Amazon India Builds D2C Future, Risks Marketplace

Amazon is encouraging its Indian sellers to establish independent online storefronts through a new initiative called SmartBiz. This program allows sellers to create code-free websites at no cost, leveraging Amazon's robust logistics and payment systems. The move comes as India's e-commerce landscape diversifies, with brands increasingly opting for direct sales channels over centralized marketplaces.

This strategic shift carries a potential risk of reduced high-margin revenue from commissions and advertising, estimated to be significant. However, Amazon is banking on embedding itself deeply within the burgeoning D2C sector, much like it did with Amazon Web Services (AWS). If successful, SmartBiz could establish Amazon not just as a retailer but as the critical infrastructure provider for Indian entrepreneurs, potentially outmaneuvering rivals like Shopify and ONDC.