India To Be No.2 Market For Amazon After US

By: Simarjeet Singh

Amazon is the largest internet-based retailer in the world having separate retail websites for the United States, the United Kingdom and Ireland, France, Canada, Germany, Italy, Spain, Netherlands, Australia, Brazil, Japan, China, India and Mexico.

According to the news coming out from the amazon, India could become the second largest market for amazon after US, analyst from bank of America Merrill Lynch believe. Given Amazon CEO Jeff Bezos interest in Indian Market, they feel, India could see more investments – over the budgeted $5 billion - management focus and import of some best practices from the US

“On our estimates India could potentially generate 21% of Amazon’s international GMV; $81 billion in GMV and $2.2 billion in operating profit by 2025. In our view, if other Indian e-com companies do not continuously innovate and receive timely adequate funding, then we see potential for Amazon to emerge as the No. 1 e-com platform in India,” the analysts wrote.

Amazon could also become Second largest player in the online market in India after Flipkart by 2019.Flipkart is the current market leader in india and even in terms of customer satisfaction, reports indicate that Flipkart is way ahead of its competitors either it is Amazon or Snapdeal.

Bank of America estimates market leader Flipkart's market share to be 43%, while the second-largest Amazon garnered 28%. Snapdeal.com, owned by Jasper Infotech, held a 12% share at the third position. Bank of America expects Amazon's market share to improve to 37% by 2019, from 21% in 2015, and predict it to be a close no. 2 behind Flipkart.

Ever since the Amazon become operational in India, Amazon has enjoyed the brand image it has created over the years globally and now Amazon is building reliability of service among consumers, concentrating on offering superior customer service and wider assortment of products.

Amazon has also tied up with Vakrangee, a franchisee with strong presence in rural/underdeveloped areas to fortify its rural presence at relatively lower investments.As of June this year, Amazon is already active in more than 1,000 outlets, with plans to increase to 75,000 outlets by 2020.