This ET news report puts a stamp of approval on the above IOS poll by affirming that merchants on Amazon India witnessed 10 times growth in sales.
10-fold rise in sales
Gopal Pillai, Director and GM – Seller Services at Amazon India confirmed to ET that merchants listed on their platform have recorded 8-10 fold growth during the last sale season. He added, “Some sellers are even witnessing 20x growth. The Great Indian Festive Sale has seen 2-fold growth in terms of customers and units compared to Great Indian Freedom Sale and 4x growth compared to last Diwali.”
Not just Amazon officials but sellers are saying the same. One Amazon seller, Sathish left a comment, “Not only for me, amazon sales increased by 3x to 5x then any normal day to many sellers who are selling with amazon on different categories,” below this IOS article. Another seller Mit Kotak, agreed with Sathish and commented, “My sales on Amazon have been atleast 5 times of what it was on Flipkart, in no way sales of Flipkart are anyways close to Amazon sales.”
Various seller initiatives and investments made by Amazon is said to be the reason behind this growth.
Cloudtail India, the biggest seller on Amazon India
Livemint reports that Cloudtail India is the biggest selling merchant on the Amazon India platform. The company is a joint venture between Amazon Inc. and N.R. Narayana Murthy’s Catamaran Ventures.
Cloudtail generates 40% of the marketplace’s sales (with electronics and fashion being the dominant categories), which is why it is at the top.
It reminds us of Flipkart’s WS Retail, which as everyone is aware is the top seller of the marketplace and was previously owned by the Flipkart founders.
Amazon clarified that Cloudtail is given no special treatment. An Amazon spokesperson said, “Cloudtail is an independent seller on the platform that sells products across various categories and gets the same privileges as any of the other sellers on our platform.” The fact can’t be ignored though that the growth of Cloudtail’s sales has made Amazon less dependent on third party sellers.
However, this doesn’t mean that Amazon is not investing in other sellers. While money is being pumped in Cloudtail, Amazon Inc is also continuously investing in on-boarding new sellers and serving the existing ones. Proof of that is the recent investment of Rs. 1,237 crores by the parent company in Amazon India Seller Services.
If Amazon continues to perform this way, then it might soon surpass Flipkart and become leader of the Indian ecommerce industry.