Amazon's $3 Bln Investment In India: A Nail In The Coffin For Struggling Indian Etailers? Share Tweet Email Two days after the third anniversary of beginning operations in India, Jeff Bezos, the Founder & CEO of Amazon.com, announced his decision to pump in another $3 billion in the Indian market.
E-commerce industry to cross $38 billion this year: Assocham. India’s e-commerce market is likely to touch $38-billion-mark in 2016, a 67 per cent jump over the $23 billion revenue it clocked last year, according to the Associated Chambers of Commerce and Industry (Assocham).
“Increasing internet and mobile penetration, growing acceptability of online payments and favourable demographics has provided the e-commerce sector in India the unique opportunity to companies connect with their customers,” according to the Assocham’s latest report. Buying trends during 2015 have witnessed a significant upward movement due to aggressive online discounts. 2016 will be a reality check for India's e-commerce industry. Sreedhar Prasad, Partner at KPMG India believes that now it is about value and profitability for e-commerce players he Indian ecommerce juggernaut led by players such as Flipkart, Snapdeal and Amazon India, has already overshadowed the traditional retail sector.
But, Sreedhar Prasad, Partner (E-Commerce & Startups) at KPMG India believes that 2016 will be a reality check for India’s multi-billion dollar ecommerce industry, which is surging ahead on foreign capital funding despite heavy losses. Now, the focus is on the path to profitability, says Prasad in an interview to Forbes India. Edited excerpts: Currently, in the Indian e-commerce space, there are new shifts, including a focus on valuation (a long standing talk point) and questions around profitability. Amazon India's growth threatens to unsettle ecommerce firms like Flipkart and Snapdeal. BENGHALURU: Amazon India has gained significant growth momentum this year that threatens to unsettle domestic giants Flipkart and Snapdeal, with the online retailer's shipments having increased 150% in the first calendar quarter from a year earlier.
Amazon India Managing Director Amit Agarwal said in an interview to ET that the company continued to grow at an "extremely fast" pace compared with the rest of the industry and that he expects the aggressive growth momentum to continue through the year. "We were growing at 3-4 times the rate (the overall) landscape was growing. So we exited 2015 with a very high bar for growth in 2016," said Agarwal, who was recently inducted into Amazon Chief Executive Officer Jeff Bezos' global leadership team.
"What we saw in the first quarter of 2016 was that momentum has not slowed. " 120 Amazing Amazon Statistics (July 2016) (AMZN) Amazon sure has evolved over the past 20 years.
Starting out as predominantly an online bookstore, they have grown significantly into the digital retailer of choice for consumers in the U.S. and beyond. Find Out How Many People Use Over 1,000 of Your Favorite Social Networks, Apps and Digital Services Get the Report Today, Amazon continues to evolve, adding original programming and extensive mobile capabilities. Amazon India sees 250% annual growth in sellers. NEW DELHI: Amazon today said it has witnessed a 250 per cent year-on-year growth in bringing new sellers on board as it looks to tap into the booming ecommerce market in India.
The company, which is making multi-billion dollar investments in India, has over 85,000 sellers on board. "We started with 100 sellers three years ago and now we have over 85,000 sellers growing at 250 per cent year-on-year and adding over 90,000 products a day," an Amazon India spokesperson said in an emailed statement. Amazon, which competes with the likes of Flipkart and Snapdeal, has cut its commissions by 25-30 per cent across categories like mobile phones, PCs, electronic devices and personal care appliances.
"We think these revised rates can significantly help sellers to perform even better and succeed in their business. Flipkart, on the contrary, had recently increased its commissions across key segments and asked sellers to bear the costs of logistics in case of returns. Ecommerce-in-india-accelerating-growth. Amazon signs up Excel Entertainment to ensure enough takers for Prime service in India. MUMBAI: Amazon has signed up one of India's top banners to ensure that its Prime service will have enough takers in the country.
Farhan Akhtar and Ritesh Sidhwani's production house Excel Entertainment will create Amazon's first show, Power Play, said a person with knowledge of the matter. Filming for the cricket-and-showbiz--themed series is set to start on August 16. Another crime-based show is also said to be in the works. The online marketplace debuted Amazon Prime in India last month, offering quicker service and an early crack at deals. Video on demand will come later, it had said. 2015 Annual Report. To take on Amazon, Flipkart & Myntra to merge this week. Online retailer Flipkart will announce its merger with rival Myntra on Thursday, it is learnt.
Neither Flipkart nor Myntra confirmed it but sources close to the deal, in the works for months, said the agreement had been sealed and only signatures were left to be done. The details are not known but Myntra could be valued at $300 million (Rs 1,800 crore) at least, say sources. The two companies have been negotiating to remain separate entities after a merger. This will be the country’s first major consolidation in e-commerce, a market estimated at $2 billion (Rs 12,000 crore) of the organised retail pie of $40 bn (Rs 2.4 lakh crore) and a total sector size of $600 bn (Rs 36 lakh crore). Morgan Stanley – The Philomath. E-commerce is the catchword these days.
Often times we come across news of so and so investor betting big on the Indian e-commerce growth story and funding start-ups in this space. The increasing trend of investments in the Indian e-commerce sector shows the positive investor outlook toward this space. Driven by rapid technology adoption, increasing internet access, favoured demographics and growing internet user base, the growth of the Indian e-commerce sector in the past few years has been nothing short of extraordinary. Not a long wait for Amazon Prime in India now. Share Tweet Email.
Future-of-digital-january-2016. Gfx-3. Amazon pips Snapdeal to become India's 2nd largest online marketplace after Flipkart. BENGALURU: Amazon was India's second-largest online marketplace by shipments last month, industry estimates show, as it dislodged Snapdeal to become the only major player to increase share from a year ago. Market leader Flipkart's share of shipments fell to 37% in March from 43% in the same month in 2015, and Snapdeal's fell to 14-15% from 19%, show estimates by an investor tracking the logistics market and the chief executive officer of a logistics company that handles shipments for online retailers. Amazon India's unit market share surged to an estimated 21-24% from 14%. Although the data are snapshots of shipments a year apart, they definitely point to a drop in the volume market share for the India-based companies. Other industry experts and analysts corroborated the numbers. They said the data were evidence of the larger unit market share trend in India's ecommerce industry, although at least one recent estimate pegs Flipkart and Snapdeal ahead of Amazon India by sales.
Flipkart beats Amazon, Snapdeal in m-commerce market share: SimilarWeb.