Growth experienced in the E-Commerce industry is due to the deployment of web 2.0 penetration across the country. Rapid growth of the industry was supported by the capsized lifestyle pattern of the country. India is one of the talent hubs of the world with huge skilled human resources and this factor support the E-Commerce firms to create a distinctive service to the populations. Among the different E-Commerce sectors in the country online travel industry accounts for 70% growth in the country. Next to that, e-retail leads the race with 18% growth reports ASSOCHAM.
The E-Commerce industry becomes more visible to the consumers with the growth of online book store Flipkart in the year 2011. Flipkart’s growth in India fascinated the American retail giant Amazon to enter into the Indian market. Indian consumers are typically termed as the vendor-agnostic. They really don’t care for the seller but the discounting strategy and deal attracts them more. Indian market is more viable than any other market in the world, its wide range of needs, resources, technology which is in growth path and growing demand for sophistication drives the growth of the E-Commerce firms.
E-bay entered the Indian market with the acquisition of bazee.com in the year 2004. It applied the same business model as in America, but the model doesn’t fit to the Indian retail needs and thus the firm struggles for oxygen in the Indian market.
Amazon’s strategy for the Indian market is distinctive in nature, it is in the process of updating the pin code’s across the nation and it is even having access for the Arunachal Pradesh. Amazon has studied the nerve of the country clearly, it knew to be successful in the Indian market investing in the logistics and the customer centric discounting is inevitable.
|Company||Number of products Sold||Number of categories||Registered Users|
|Amazon.in||Over 15 Million||28||NA|
|Flipkart||Over 15 Million||70||18 Million|
|Snapdeal||Over 4 Million||500||25 Million|
When comparing the growth and the marketplace of these American firms, Amazon is ahead of E bay in attracting and conveying the business to the consumers. Healthy competition with different local players and the foreign players the E-Commerce industry is leading to the top ground of the country. The phase of competition and growth can lead the industry to reach the market size of 20billion USD within 2020.