End of Amazon ????? #shorts #amazon #business #flipkart

End of Amazon ????? #shorts
Here in this short video we'll answer this question.

Kirana stores are the lifeblood of India; they are where the majority of people get their groceries.
However, manufacturers do not simply supply these stores. Instead, you have a complex network of distributors who push products from FMCG companies to Kirana stores. And Amazon wished to upset this delicate balance.
Remove all middlemen and connect the manufacturer directly to the Kirana stores. As a result, they established warehouses in Karnataka. Amazon has finally shut down its experimental B2B e-commerce venture. It was losing money and showing no signs of turning a profit. They squandered $227 million and were unable to succeed.

Why? To begin with, distributors are extremely resilient. Even if Amazon offered manufacturers a lower price, the long-term consequences of relying on them can be disastrous. And FMCG firms are well aware of this existential threat.
As a result, top FMCG companies such as HUL, ITC, and Marico continue to distribute nearly 90% of their products through traditional distribution networks and only 10% with these online players.

So, with all of these obstacles, running a B2B e-commerce business in India isn't easy. And it all comes down to one thing: cash burn! According to some estimates, incumbents spend 4 to earn 1 in revenue. Perhaps Amazon realized that it is not a long-term viable proposition.

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