E-commerce major Amazon will shut down its wholesale unit Amazon Distribution, which was serving small shop owners in three districts of Karnataka.

Amazon Business, the wholesale B2B marketplace integrated with e-commerce platform Amazon.in, will continue to operate in the country, a source aware of the development said.

When contacted, an Amazon India spokesperson confirmed the e-tailer's decision to discontinue Amazon Distribution.

The spokesperson explained that Amazon experiments and invests in new ideas to delight customers and continually evaluates the progress and potential of products and services to deliver customer value.

"We regularly make adjustments based on those assessments. As part of our annual operating planning review process, we have made the decision to discontinue Amazon Distribution, our wholesale e-commerce website for small neighbourhood stores around Bengaluru, Mysore and Hubli.

"We don't take these decisions lightly. We are discontinuing this programme in a phased manner to take care of current customers and partners and we are supporting our affected employees during this transition," the spokesperson said.

This is the third business unit to be closed after the company announced the wrapping up of Amazon Academy and the food delivery business.

An Amazon spokesperson said that the company remains focused on providing our growing customer base with the best online shopping experience with the largest selection of products at great value and convenience.

"We remain committed to India and will continue to invest across those areas where we can bring value to our customers including Grocery, Smartphones and Consumer Electronics, Fashion and Beauty, as well as our B2B offerings such as Amazon Business," the spokesperson said.