Daijiworld Media Network - New Delhi

New Delhi, Nov 10: Amazon plans to introduce artificial intelligence (AI) agents capable of identifying business opportunities and acting on behalf of sellers, as the e-commerce major seeks to strengthen its partnership with nearly two million Indian sellers and support the growth of small businesses.

“The next shift is agentic AI,” Abhijit Kamra, director overseeing seller experience across Amazon's emerging markets, told Business Standard. However, sellers will retain the final say on important business decisions, he said.

The move comes amid growing participation from smaller cities on Amazon's platform. More than 70 per cent of businesses participating in this year's Great Indian Festival (AGIF) came from tier-2 and tier-3 cities, according to the company.

Amazon said it aims to evolve from being merely a marketplace into a long-term growth partner for businesses by simplifying selling, making costs more predictable, improving profitability and helping sellers build their own brands.

“We believe that when our sellers succeed, we succeed,” said Sachin Kaushik, vice-president, Selling Partner Services, Amazon India.

The company aims to extend the benefits of AI to 15 million small businesses by 2030. Interactions with its round-the-clock Selling Partner AI assistant, available in English and Hinglish, have increased 7.5 times year-on-year. More than 200,000 sellers are using AI-powered listing tools, which can reduce routine listing time by up to 70 per cent.

“This festive season, that meant faster catalogue creation, smarter inventory planning and sharper reads on customer demand, work that once needed a larger team,” Kamra said.

More than 28,000 sellers use Amazon's Product Opportunity Explorer to identify market demand, while over 69,000 have used the Sale Event Planner to prepare for promotional events.

“Our vision is to make AI an everyday business partner for Indian entrepreneurs,” Kamra said.

Amazon reported that shopping volumes during the Great Indian Festival increased by more than 50 per cent year-on-year. During the first week, seller sales rose 3.5 times compared with normal business levels, while new sellers recorded more than 2.5 times growth in units sold.

Participation by small and medium businesses increased nearly 30 per cent year-on-year to a record high. The number of SMBs crossing Rs 10 lakh in sales grew more than 4.6 times. New sellers crossing Rs 1 lakh in sales increased 2.4 times, while those crossing Rs 10 lakh grew more than four times.

More than 50 per cent of Amazon's sellers are based outside metropolitan cities.

The company's initiatives, including Amazon Karigar and Saheli, have reached more than 18 lakh artisans and weavers and over 18 lakh women entrepreneurs, respectively. Local Shops on Amazon covers more than 3.5 lakh neighbourhood businesses.

New partners this year include the Army Women’s Welfare Association, Maharashtra's Mahila Arthik Vikas Mahamandal and the National Cooperative Organics.

During the first week of the festival, select women entrepreneurs under Saheli recorded a tenfold increase in sales, while Karigar sellers reported growth of more than 1.5 times compared with normal business levels.

“We’re also seeing inspiring stories from women entrepreneurs in Churu and Bhopal to artisans in Jodhpur and Saharanpur, who are reaching customers beyond their local markets,” said Aruna Daryanani, director, Selling Partner Services, Amazon India.

Amazon said it was addressing challenges such as digital literacy, catalogue creation, inventory management and market access through simplified onboarding, seller education and AI-powered tools.

The company has expanded its zero referral fee offering to more than 12.5 crore products priced below Rs 1,000 and reduced fees under its Easy Ship service. During the first 24 hours of the Great Indian Festival, the number of sellers offering products priced below Rs 500 who recorded a tenfold increase in sales more than doubled year-on-year.

“By continuing to reduce selling costs and simplify processes, we are helping businesses list more selections, offer sharp and attractive prices and reinvest in their businesses,” said Vikram Deshpande, director, Product Management, Amazon India.

Rival Flipkart extended its zero-commission offering for fashion sellers to all price points in July, expanding it beyond products priced at Rs 1,000 or less.

During its 13th Big Billion Days sale, one in 15 Indian online shoppers visited Flipkart in the first hour. Orders, units sold and buyers each grew by around 20-22 per cent year-on-year. Nearly half the buyers were from Gen Z, while around 60 per cent came from tier-2 cities and beyond.

During the June visit of Amazon chief executive officer Andy Jassy to India, the company raised its investment commitment in the country to $48 billion by 2030, including an additional $13 billion for AI and cloud infrastructure.

Amazon said sellers would benefit from these investments through improved technology, logistics and access to global markets. Through Amazon Global Selling, more than 200,000 Indian exporters had collectively facilitated exports worth over $20 billion by 2025. The company aims to increase cumulative exports through the programme to $80 billion by 2030.

“Our focus is on helping entrepreneurs reach more customers, build successful businesses and take Made-in-India products to the world through Amazon Global Selling,” Kaushik said.

On quick commerce, Amazon said its ultra-fast delivery service, Amazon Now, gives sellers access to additional demand while ensuring that fulfilment models remain commercially viable. The company said it did not consider any single delivery model to be the future of commerce.