Flipkart and Amazon are at it again. This time the two mega forces in Indian ecommerce are preparing to compete in a summer online retail showdown. Amazon is closer than ever to dethroning Flipkart from its glory. The US-based etailer had a great first quarter in 2017 with a sales growth higher than that of Flipkart’s.
To capture the top position Amazon is gearing up to fight Flipkart this summer through its Great Indian Sale. The sale will commence from 11th May this week. That is before its rival’s 10 year celebration sale. During the festive sale period in October, Flipkart stole the show with major margins. Amazon won’t let that happen again this time.
How will Amazon tackle the competition?
Flipkart may have started it summer sale early with the launch of its ‘Sumer Shopping Days Sale’ on 2nd May, but Amazon has few tricks of its own to push sales. The sale on Amazon will include:
- Consumer favourites
- Big deals on popular brands
- Fast deliveries
- Simple and easy returns
Amazon’s prime subscribes have grown since the introduction of the concept in India. The etailer is looking to make the most of its prime member base this summer by giving them access to exclusive offers on around 100 million products that will be on sale.
Amazon wants to double its storage capacity. This will certainly help with faster fulfilment. During the previous month the marketplace announced the launch of 7 new fulfilment centres for large appliance and furniture goods. 7 more fulfilment centres are expected in India, but these will not be a part of the Great Indian Sale this May.
Amazon said, “Besides the already announced 7 specialized ones for large appliances and furniture, there will be 7 other fulfilment centres set up in Telangana, Haryana, Maharashtra, Madhya Pradesh, Uttar Pradesh and Andhra Pradesh to support its regular business. All of these will be fully operational by the end of this quarter to support the remarkable high double digit growth the company continues to see.”
Cash backs and discounts
Amazon has teamed up with Citibank to offer 10% cash backs on its website and 15% cash backs on its mobile app. That’s not all; online shoppers on its app with purchases of more than Rs.500 will receive a Rs.1000 discount on domestic hotels booked through Yatra.com. Customers will have access to product discounts upto 80% on the platform as well.
The foreign ecommerce company will certainly be burning cash to facilitate discounts, cash backs and faster delivery. However, this is all in the aim to become India’s #1 online marketplace. Ecommerce experts believe that Amazon has spent its money wisely so far through strategic investments and good brand building.
All these expenses may help the etailer achieve sales, but it may be ignoring the one thing it always does during mega sales, the scope of product returns.
What do you think online sellers will heavy discounting make or break Amazon this summer?