rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » How Amazon is building its India business

How Amazon is building its India business

April 04, 2014 12:21 IST

How Amazon is building its India business

     Next

Next

In just over 10 months of existence in India, Amazon, the biggest online retailer in the world, has become the largest in the country, too, in the number of products its e-commerce sites stock.

At 15 million products, Amazon India has overtaken home-grown e-commerce portals such as Flipkart and Snapdeal. While Flipkart offers close to 10 million products, Snapdeal offers four million-odd. US-based portal ebay offers over 1.5 million products in India.

Amazon, which debuted here with local brand Junglee.com in February 2012, launched its own digital marketplace in June 2013.

Click NEXT to read further. . .


Image: A worker packs a box at Amazon's logistics centre in Graben near Augsburg.
Photographs: Michaela Rehle/Reuters

     Next

How Amazon is building its India business

Prev     Next
Prev

Next

In an emailed response, Amit Agarwal, vice-president and country manager, Amazon India, said: “In June 2013, we launched with just two categories.

“But in just 10 months our total selection now stands at over 15 million products across 20 categories.

“The pool of sellers in our marketplace has grown more than 30 times since launch. “Today, over 75 per cent of units shipped are fulfilled by Amazon.”

Though Agarwal did not divulge the company’s financial numbers, Arvind Singhal, chairman of Technopak Advisors, said even if Amazon India was not in the $1-billion club now, it would enter it in the next 12-18 months.

Click NEXT to read further. . .


Image: A worker collects items to pack into boxes at Amazon's logistics centre in Graben near Augsburg.
Photographs: Michaela Rehle/Reuters

Prev     Next

How Amazon is building its India business

Prev     Next
Prev

Next

While Flipkart has hit the $1 billion revenue mark, Snapdeal is expecting sales of $1 billion this year.

“Amazon has quietly ramped up its India operations and aggressively added merchants on its site.

“It will certainly fight to become the number one in the e-commerce space in India,” said Singhal.

Agarwal said Amazon was already the largest store in several categories, including books, music, video games, toys, home and kitchen appliances, bags, luggage and fashion jewellery.

Click NEXT to read further. . .


Image: US dollars.
Photographs: Reuters

Prev     Next

How Amazon is building its India business

Prev     Next
Prev

Next

“We have been able to make available over 165,000 products for next-day delivery across hundreds of pin codes in India.

“More than 50 per cent of our customer demand is eligible for next-day shipping,” Agarwal said.

He also said Amazon.in was the fastest growing mobile commerce site for Amazon globally.

Amazon has built two centres, in Bhiwandi on the outskirts of Mumbai and in Bengaluru, to extend its reach and delivery speeds.

Click NEXT to read further. . .


Photographs: Shannon Stapleton/Reuters

Prev     Next

How Amazon is building its India business

Prev     Next
Prev

Next

Both Flipkart and Snapdeal, which have a head start over Amazon, are competing vigorously with the global giant.

A month before Amazon launched its marketplace in June last year, Flipkart put out its own.

In December, Flipkart came up with a one-day guaranteed delivery service just five days after Amazon.in.

Fashion-focused Myntra has also started same-day delivery in some cities. Snapdeal is looking to extend the service to cities beyond Delhi-NCR.

“Amazon has an unfair advantage over home-grown portals in global branding. Local players need to make a lot of effort to reach out to customers,” said Harminder Sahni, managing director at Wazir Advisors, a consulting firm.

Click NEXT to read further. . .


Image: A month before Amazon launched its marketplace in June last year, Flipkart put out its own.
Photographs: Jonathan Alcorn/Reuters

Prev     Next

How Amazon is building its India business

Prev     Next
Prev

Next

However, Sahni says local portals, especially the niche ones like the apparel-focused Myntra and the furniture-centric Pepperfry, offer stiff competition to Amazon.

“In furniture and apparel, there are considerations beyond price and product. Customers also look at assortment and service.

"Somebody doing everything can not do as good a job as speciality retailers,” Sahni said.

"Technopak’s Singhal believes that the supply chain is the single biggest issue for all e-commerce portals.

“The logistics companies here have strengths in the B2B (business-to-business) space and not in B2C (business-to-consumer).

“This is going to slow the growth of e-commerce companies unless somebody invests in B2C logistics here,” said Singhal.

Click NEXT to read further. . .

(With inputs from Shivani Shinde Nadhe)


Image: Amazon Kindle.
Photographs: Courtesy, Amazon

Prev     Next

Top PHOTO features of the week

Prev     More



Tags: 1

Prev     More
Source: