Gobal e-commerce giant Amazon is indeed continues to invest “very heaviliy” in the Indian market, hyped by its strong sales numbers and planning to expand its seller base, and at the same time also encouraged to open a Diwali Store on its US and UK websites this year. For what? The objective is to cater to the anticipated huge demand from the millions of Indian who live in these countries. This move by Amazon Inc has been made possible by the 5.000 sellers from India on its platform who are eligible to exportfrom here.
Amazon senior vice president and CFO Brain T Olsavsky said the US-based company has seen sales quadruple during the festive season (pre-Diwali sales) compared to last year.
“We’re really encouraged with what we are seeing, both on the customer side and the seller side. On the customer side, active customer accounts are up 230% year-over-year. We are in the middle of the Diwali season that is going really well. Sales are 4x what they were last year,” he said on an investor call.
The company has been adding 40,000 products a day so far this year on its platform and the number of sellers has grown more than 250% year-on-year. About 90% of those sellers are using our logistics and warehouse services. And as a result, we’ve tripled our fulfilment capacity year-over-year.
“So, we are very encouraged, as I said last quarter in India, and continue to invest there very heavily,” he added. India is however been one of the fastest grwoing markets for Amazon, which will evidently investing heavily into setting up warehouses across the country to speed up delivery and efficiency.
The online retail giant had announced an investment of $2 billion to expand its operations in India last year. Amazon, which competes with the likes of Snapdeal and Flipkart in India, operates under a marketplace model here as regulations in the country do not allow foreign capital in business-to-consumer (B2C) e-commerce. According to the source, the e-commerce industry in India is expected to touch $60-70 billion by 2019 from $17 billion in 2014.
About the Diawali-e-store by Amazon in the United States and United Kingdom. The export platform was although thrown open to sellers in India in February this year on an experimental basis. Indian sellers will be able to retail their products to Amazon’s 285 million registered buyers globally.
“I believe what we are building now is the road for India to export to the rest of the world. Indian sellers can sell anything from clothes to home furnishings, jewellery, and handicrafts. The 5,000 sellers exporting now is just the tip of the iceberg. Those numbers will grow dramatically,” Piacentini said, adding that this was in line with the ‘Make in India’ objective of the Indian government.
Soon the UK and US customers will be able to get products – like Indian books in vernacular languages, history, music and other cultural products – that have traditionally been difficult to obtain. Amazon will also open the Indian store in other European countries and then in the rest of Asia. The platform allows sellers to directly get in touch with consumers, reducing the number of layers in between.
Black Friday, in the fourth week of November, is one of the biggest shopping days in the US and the beginning of the Christmas shopping season. For now, Amazon plans for a big Diwali e-store sales will be conducted in the US and UK starnext month.