Amazon has unveiled its "Amazon Launchpad" in India, the seventh country where the e-commerce giant has launched the program.
The world's biggest e-commerce company by gross merchandise value and India's second biggest by shipments will be partnering with India's startups so that these budding companies may leverage the logistics infrastructure, mentoring on marketing and networking contacts Amazon may be able to provide them with.
Amazon Launchpad is likely to be of relevance to those hardware startups looking to go global.
There are already 25 startups enrolled in the program along with hundreds more expected to join, according to Jason Feldman, director of Global Innovations at Amazon said.
"Amazon Launchpad is an exceptional opportunity for Indian startups to get access to big consumer markets nationally and internationally," he said.
Anyone is free to sell their products on Amazon the normal way. However, startups approached to be a part of the program must pay Rs 5,000 rupees a month. It's not an exclusive contract and the startup can choose to sell on other ecommerce websites as well.
The point of the fee is not to increase revenue but to make sure that the startups joining are committed and to have "skin in the game", said Amit Agarwal, vice president and country head of Amazon India.
"Amazon has always encouraged and supported innovation. By bringing Amazon Launchpad to India, we are excited to support the Government's 'Start-up India' initiative and encourage innovation from the Indian start-up community," he said.
Amazon officials said the company will use its technological capabilities to increase discoverability and promote these startups.
Founders of a smart footwear solution company said that before Amazon approached them to be a part of the program via NASSCOM, they were in talks with another large e-commerce company in India about a partnership. However, the deal with Amazon was cleared within a month, while progress was slow with the other e-commerce company.
The GOQii founder feels the fee is nominal and worth it. GOQii partnered with Amazon in 2014 and believes Amazon has helped them increase standards of merchandising and customer service. All standard policies on selling, the related terms and conditions will be the same even for the Amazon Launchpad members.
Within India, Amazon has 27 warehouses, spanning 7 million cubic feet of space and is the largest offering among e-commerce companies in India. It also has its own logistics and delivery arm along with India Post as a partner for delivering to rural areas where Amazon reach is limited.
The startup must have received funding and have a physical product that can be shipped within 30 days in order to qualify for the Amazon program.
The program is already present in the US, UK, Germany, France, China and Mexico.
Amazon.in has partnered with Startup India, NASSCOM 10,000 Startups, Indian Angel Network, NITI Aayog, Government of Maharashtra, Government of Telangana, TiE and investor entities amongst others, to help identify and enrol Startups.
Ramesh Abhishek, secretary of the Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce and Industry, said: "The central government needs to play a big role in increasing funds and labs, and ease of patenting processes for startups. State governments too must play a big role here."
BW Reporters
Regina is a reporter for BW Businessworld. In her previous assignments, she has worked with Independent television Network as a news anchor and reporter in Sri Lanka
