Fresh and Heavy Capital Infusion for Amazon India to Topple the Market for its Competitors

India: Amazon has invested over USD309 million in its Amazon India unit, this investment bids to topple their competition from their perch atop one of the world’s fastest growing markets for online retail. This investment made in November takes the tally of investment capital to over USD1 million in the last 12 months.

Amazon.in is estimated to have lost more than USD153.84 million due to the special offers and discounts on sale during the festive season. The company is losing capital at a fast pace and is expected to burn a whole lot of capital in the coming year to outpace its rivals. However, Amazon is determined to establish their position as the preferred online retailer as they are India’s fastest growing e-commerce marketplace. Amazon is also keen on grabbing most of the market share by expanding through its other services on offer like logistics, wholesale commerce and payments and subscription of Prime service. This strategy to retain their market has proven to be fruitful as the company has registered a substantial growth of 116% in their turnover during the last fiscal.

As per TechSci Research, the E-Commerce market is estimated to double by the end of this year, most of which is going to be contributed by the sales during the festive season. The third fiscal quarter might not have proven to be fruitful for Amazon, but the prospect of widespread expansion in a country like India, such an investment will not go to waste. the Indian E-Commerce market is at its pace reason being the present lifestyle is busy and the priorities are changing day by day and people are involving in many different things at a single point of time so they cannot spend much time on shopping which results in increasing the attraction to online sales. In India where there are less retail joints and people who are familiar with the latest technologies are opting for the online sales which on one side saves the time and on the other side help the companies and the customers to reach each other easily.

According to a recent report published by 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.