Amazon has entered the crowded e-retailing market of India. With Amazon.in, the website is already selling books, DVDs and CDs all over India. Amazon.in will in the future start offering cameras, mobile phone and other electronic gadgets.
The launch is innocuous enough and it hardly has enough things listed to actually get a lot of purchases at the moment. But Amazon comes to India with some big guns and these guns are going to cause some headaches to the likes of Flipkart, Homeshop18 and Jabong.
1. The Amazon Fulfillment Centers
This is what usually an Amazon fulfillment center looks like. It is basically a massive warehouse with miles of conveyor belt helping with the sorting of packages. According to an interview at AllThingsD, Amazon has confirmed a million square foot fulfillment center in Mumbai, India. It plans to add more such centers in the future. Other e-retailers in India might simply not have the resources to buy up such properties especially nearer metro cities.
2. Amazon Associates
Amazon has a really well run affiliate program. Flipkart and others might have their own but none are extremely popular as Amazon. Though Indian webmasters might be preferring Amazon because the payout is in US dollars. Amazon India has already hit the ground running with an affiliate program. Head over to affiliate-program.amazon.in and sign up with them to register with their program.
3. The Amazon Products Universe
Amazon has certain things that they can offer, to which Indian companies simply have not an answer to. The Amazon universe is vast and has a range of services and products. The Kindle, GoodReads social network, the self-publisher eco-system called “create space” and Amazon Web Services (AWS) are things that even the likes of Google and Apple have not really been able to dent into.
But there is hope for Indian e-retailers. Online shoppers are a bit more loyal to websites they usually buy stuff from and have had a good experience. Also vendors if they are happy might stick with companies who have been in the game atleast locally far longer than Amazon.
This will mean Indian e-commerce sites better start focusing more on how happy their current customers are and not just focus on getting newer customers. The likes of Flipkart and HomeShop18 already have a large buyer base and might not be immediately feel threatened by Amazon. But I wonder what will happen to smaller players in the sector.
India’s e-commerce sectors is set for maturing but it will not do so before a lot of churning and eventual demise of non-serious players takes place.
What are your views on Amazon India? Do drop in your comments.