Amazon, the world’s largest e-commerce company has invested Rs. 2,700 Crore in its Indian Operations, just few months after putting in Rs. 2,600 Crore into the marketplace business in May this year. This investment brings the total infusion into Amazon India to over $1 billion since January.
As per sources from a business intelligence platform, paper.vc, it has been said that an additional amount of Rs 100 Crore has also been invested by the Seattle Company into its food retail business named as “Amazon Retail”. As per the experts, the aim of this investment is to make the marketplace suitable for sellers who wish to sell their goods online in India and Internationally.
In January, Amazon had received Rs. 1,950 Crore, and its total immersion into its marketplace business stands close to Rs. 25,090 Crore or more than $3.6 billion. Amazon has committed in recent interviews or press releases $5 billion to win the Indian market. Now, the biggest question is that who will win the Indian market in this festive season? Amazon or its rival, Walmart-owned Flipkart?
As per the statements made by Mr. Satish Meena, Senior Forecast Analyst at Forrester, it can be said that Amazon would want to push vigorously in this festive season and will be able to beat Flipkart on a standalone basis in terms of market share. As per a recent data released by Forrester, Amazon had a market share of around 31.1% whereas Flipkart Group had a market share of around 39.5%.
Amazon received the latest share on August 6 from the Singapore-based Amazon Corporate holdings and Mauritius-based Amazon.com. The records show that the Amazon Retail has also received its share on July 31 from the same companies. In June, Amazon Retail India had received a sum of Rs. 10.5 Crore from its parent company.
The Seattle Company has promised to invest over $500 million in its food retail business for which it has started off a pilot project in Pune. So, Amazon is planning to invest more on its food retail business.
Amazon.in, the leading e-commerce industry in India, has come up with various initiatives to boost sales. To help sellers reduce costs, it continues to invest in logistics and technology. While Amazon is likely to keep pushing on grocery, the growth is expected to be slow, and Amazon is likely to focus more on fashion and electronics to prevent its customers from going to other platforms to shop for these categories. Amazon is basically focusing on providing each and every category to its platform so that the customers will get everything only at a particular website and they don’t feel the need to move to another website to shop for other items.
According to statements made by various e-commerce experts, it can be said that Amazon has updated its risk factors taking knowledge of competition in global markets which is coming just few months after its US-based rival Walmart announced that it is planning to buy 77% stake in India’s largest online retailer i.e. Flipkart.
As per the statements made by Amazon officials, it can be said that Amazon entered food retail in India earlier this year. The e-commerce giant, Amazon, has also expanded the definition of retail to include physical, e-commerce and omni-channel, mainly under its International Operations.