Amazon India’s sellers are growing at 250%

India: Amazon India is investing heavily in India, with booming ecommerce market of the country, to attract new sellers. The company is planning to invest billion dollars in India to gain new and more sellers to increase its share in the Ecommerce Industry of India. Amazon currently has over 85,000 sellers, adding over 90,000 products a day which started three years ago, with only 100 sellers in the country.

Moreover, companies such as Flipkart are more focused in increasing the commission on various products, and asked sellers to bear the cost of logistics and returns. Amazon, on the other hand, has also reduced its commission on PCs, mobile phones, personal care appliances and electronic devices by 25-30 per cent. The total amount invested by the company here in India is beyond USD 5 billion, including USD 3 billion, which will be invested by Amazon India soon, and USD 2 billion, the amount of investment, which was invested in 2014.The companies is currently offering services such as Seller Flex, Fulfilment by Amazon, Easy Ship, etc., which are focusing on logistics to expand its business 

According to Techsci Research “India E-commerce Market Forecast & Opportunities, 2020”, the country’s e-commerce market is projected to grow at a CAGR of more than 36% during 2015-2020. E-services segment, which comprises online travel, online payments, online classifieds, etc., is expected to continue its domination through 2020. However, the e-tail segment that includes electronics, apparels & accessories, health and personal care, etc., is expected to witness significantly higher market growth compared to e-services segment over the next five years. During 2015-20, the western region is expected to remain the largest e-commerce market in the country. Major players operating in India’s e-tail market include Flipkart, Snapdeal and Amazon.

According to TechSci Research, the invested amount will help the e-commerce companies to gain its share in the ecommerce market, and as well as to attract new sellers, which will ultimately result in better performances by the sellers and Amazon India. Moreover, the transferring cost of logistics and returns, to the sellers, will lead in loosing existing sellers, the move taken by Amazon India to decrease its commission by 25-30 per cent on various products, will help in attracting new sellers to offer wide variety of products on a common platform. Amazon India should also focus on reducing operational cost in favour of sellers by providing better logistics in India, as India is the key market for Amazon.