Two great pieces of news has emerged from Amazon India’s corner. One is direct indicator of its speedy growth rate and other reflects its expansion strategy to accelerate the growth even further.
Amazon has 2 lakh sellers on its platform
Amazon India’s seller base has swelled 100% in less than a year. The online marketplace’s seller count was 1 lakh in July 2016. And now it has doubled with 2 lakh sellers on its platform.
An elated Gopal Pillai, Director & GM, Seller Services, Amazon India said,
“We are very excited and humbled to reach the important milestone of 2 lakh sellers on the Amazon India marketplace in just four years of our operations in India. We have been laser focused in our ambitious vision of transforming the way India sells and evolving a conducive environment for anyone with an intent to sell to do so locally, nationally, and globally.”
According to Amazon, the various seller on-boarding initiatives such as Chai Cart and Tatkal encouraged vendors from tier 2 & 3 cities to join their portal. Promoting artisans and craftsmen as part of its localization strategy also contributed to this speedy growth of seller base.
Amazon – Big Basket merger on the cards?
Amazon’s food etail plan got green-lit by DIPP in May this year. And official nod for FDI in food retail might also happen soon. With so many positive developments, acquiring Big Basket can be described as the next big thing.
Neither of the etailers has confirmed this news but insiders say that the talks are on. The deal may or may not finalize as the negotiations are still in early stages, but Amazon would pull off a major coup if it acquires Big Basket.
E-grocery leader-board shuffle
Big Basket is the current leader of the online grocery industry. The food etailer processes over 50,000 orders per day and has a customer base of 5 million. From setting up distribution centres to getting hands on $150mn expansion funding, Big Basket is probably the only e-grocer that is performing well in this segment in spite of the heavy losses.
The buzz about Amazon-Big Basket merger comes at a time when Flipkart is close to acquiring Snapdeal and is looking at online grocery with renewed interest. The home-grown etailer has started building its team and is gearing up for FMCG and consumable’s category launch in July.
Needless to say, major overhaul of Indian online grocery industry is on the horizon. Would Big Basket continue to lead and will there be a new market leader?