Amazon has been in second place for the most part of its ecommerce journey in India. The US-based etailer, however, has been working on various strategies to pick up sales and push it ahead of rival Flipkart. IOS reported recently that the etailer sees itself as the true market leader with a gross sales increase of 88% in Q1 of FY18.
But, has it really managed to jump into first place where customer preference is concerned?
What Amazon India has that its rivals lack are its Prime programme and strong logistics play. These have managed to capture customers and encourage repeated sales. According to a survey by Forrester Research, a research firm, Amazon continued to be online shoppers’ preferred destination. This has widened the gap between Flipkart and Amazon.
Where do Indians shop most – Flipkart or Amazon?
Between the period from February to March 2017 a total of 2,000 Indian consumers participated in the survey conducted by Forrester Research. The results from the survey showed that out of the 2,000 shoppers recorded –
- 80% shopped on Amazon
- 65% shopped on Flipkart
Based on the stats collected from the respondents, the customer preference for Amazon India was higher than that for Flipkart, for the first time last year. From the details the 2,000 metropolitan respondents provided, it was found that in 2017 –
- Flipkart shoppers dipped from almost 70% to 65%
- Jabong shoppers reduced from more than 30% to around 25%
- Amazon shoppers rose from 75% to 80%
Amazon’s share of new customers in non-metro locations jumped to 75% during this year. In 2016, the year-on-year new customer share increased by 60%, the company said.
Online retail spends
In 2017, online retail spending scaled up again after the dip caused by limited discounts and sudden demonetisation. The year’s online spends per buyer grew to Rs. 26,671 from the amount in 2016, which was Rs. 24,092.
Why do people like shopping on Amazon?
Senior forecast analyst at Forrester, Satish Meena mentioned, “Shipping cost, shipping time, product review-ratings, low price guarantee and retailers return policy are the key factors for customers while picking an online retailer. Over a period of time, Amazon rated high in almost all the factors allowing customers to order more products and also increasing the num ber of categories they purchase.”
“Online customers are looking beyond just discounts and are now also considering good experience and fast delivery. Product ratings have also become important,” said an anonymous ecommerce logistics player.
Meena also claimed that more buyers are engaging with Amazon as a result of superior customer service. The US-based ecommerce company has received 25% year-on-year sales growth due to a wide variety of consumables and fast fashion categories.