English Amazon Online Shopping in India & Japan

About Amazon India

Amazon.com was founded by Jeff Bezos in 1994 as a marketplace for buyers and sellers. It is currently one of the largest e-commerce businesses in the world and one of the few dot.com companies that survived the dot.com bubble burst.

Amazon entered the Indian markets in February 2012 with the launch of the local brand Junglee.com. It was a site which offered comparison of online prices to the customers and not direct purchase of items.

Amazon India, i.e., Amazon.in was launched in June 2013, thus signalling the company’s direct entry into the Indian e-commerce industry and digital marketplace.

Market in India

Amazon India initially offered movies, books, and TV shows for sale, but in just a few weeks after the launch it also started selling cameras and mobile phones. Despite the late entry of Amazon.com into the Indian e-commerce space, it became the fastest growing marketplace in terms of geographical sales. Currently, with over 25 million products being sold at Amazon.in, Amazon India has become the largest online store in the country.

The main competitors of Amazon India are Flipkart, founded by previous employees of Amazon.com; Softbank-backed Snapdeal; and Paytm, backed by Alibaba.com.

About Amazon Japan

Located at the address of Amazon.co.jp, this is one of the biggest e-commerce extensions of the Amazon.com company. Operations in Japan have started already since the November of 2000 and has become the most customer oriented store in the country. With it’s industry leading online shopping technology, it has proudly gained it’s position as one of the top Japanese websites running today. The popular website is know also available in English. Please see, Amazon Japan English site for more vital information.

The growth of Amazon India

Amazon.in entered the Indian online market with only 2 categories in 2013. However, within a period of just ten months its total selection of products stood at more than 15 million in nearly 20 categories. Since the launch of Amazon India, the sellers-pool has grown 30 times its original size and more than 75% of the products offered are ‘fulfilled by Amazon.’

In July 2014, Bezos invested nearly $2 billion into the India business. Even though the financial numbers are unavailable, the founder stated that Amazon India went past the $1 billion sales mark in just 12 months after launch. For Amazon, it was the fastest to the billion mark anywhere on the globe; the numbers far surpassed their expectations. Amazon India is currently the biggest online store in numerous categories, including kitchen and home appliances, books, video games, music, toys, bags, fashion jewelry, and luggage.

Amazon India has warehousing space of nearly 2.5 million cubic feet in eleven ‘fulfilment centers’ spread across nine states of India. Headquartered in Bangalore/Bengaluru, the company also has another main center in the Mumbai suburbs of Bhiwandi. All these help in extending the speed and reach of Amazon India. Nearly 170,000 products offered are eligible for next-day delivery across different regions of the country, and over 50% of the customers are eligible for such next-day shipping. Additionally, it also has its own logistics arm that can deliver the goods directly to the customers. Partnership with India Post has helped Amazon India extend its reach deep into India’s hinterland.

Amazon Japan & The Environment

In Japan the development in the use of environmental package materials has been leading the industry. All material that is used for the packaging is 100% recyclable, and mostly made out of recycled materials. There is also a CO2 emission reduction program which has contributed to a great reduction of hazardous materials being reduced to the environment. You can find more information about ecological policies directly from the Amazon JP site.

There are even goats living at the fulfilment centre of Gifu Prefecture, Japan.

The Future of Amazon India

Even though Amazon.in has been hugely successful, everyone, including its competitors and researchers, know that online commerce in the country is still in its nascent phase and there is a huge scope for growth. With the third-largest internet and smartphone using base in the world, online shopping in India is expected to grow exponentially and just explode.

Analysts have stated that by 2018 the e-commerce market in India may grow to nearly $18 billion, and to $32 billion by 2020. Amazon India’s share of the pie is expected to be substantial. It may end up selling products to the tune of nearly $5 billion by 2018, with revenues in the range of $700 million and profits of nearly $600 million.

Business greetings,
Timo Holm

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