Amazon Shopper Trends and Growth Opportunities for Brands in India

Amazon is among the few businesses which witnessed significant growth during the Covid-19 pandemic, with its 2020 earnings being $125.6 billion. Its 2020 performance was recorded higher with a $100 billion higher income compared to the previous year, which was an 84% increase in the net profit. Amazon's marketplace 360 operation has complete control of its supply chain and masters the last-mile delivery. This is considered to be the most challenging part of the process of ensuring customer satisfaction.

In India, the key strategy of Amazon is its potential to think globally while acting locally. It has been able to create logistics capabilities successfully, and leverage its huge scale, and balance sheet while providing the target customers with customized local offerings. Amazon's ground strategy is tailored to the needs of the local market.

Statistics related to Amazon shopper trends and growth opportunities for Leading Brands In E-Commerce

Here are some interesting statistics about the shopper trends on Amazon and the growth opportunities In E-Commerce for various brands in India:

• Currently, more than 10 lakh sellers are on the Amazon eCommerce platform catering to a large number of Amazon shoppers. It grew from just 100 sellers when it started in 2013 and today it is the preferred online destination for sellers in India.

• 168 million products are sold on Amazon to Indian customers.

• Amazon prime India has 200 prime members across the world

• More than 100 million users are registered on Amazon India.

• As per RBC, Amazon's market share is expected to grow by 35% in 2023 and India will account for 4% of the total revenue and 13% of international payments.

• With the continuous addition of new locations, Amazon's Local Shops program keeps on increasing.

• The smartphone market forms 47% market share in Amazon India and hence it is the most popular Amazon product category.

• The most profitable shopping day is Amazon Prime Day.

• In 2022, the third-party seller's sales status crossed $3.5 billion on Prime Day. The sales on Prime day helped customers save more than $1.4 billion because of amazing discounts and deals.

• Amazon India is the most extensive smartphone channel online.

• Globally as well as in India, Amazon forms the most popular destination for research work. Around 66% of urban Indian users research products online before purchasing them. 52% of users research Amazon.

• New shoppers having a good experience with their Amazon purchases are most likely to opt for it in the future as well. 82% of users expressed their willingness to continue shopping on Amazon on a long-term basis. This indicates Amazon's strong Growth In E-commerce business and a bright future.

• Price is the most important factor for shopping on the Amazon platform. It is the key purchase decision for 82% of Amazon customers. Other important factors are lesser delivery charges and positive reviews on products.

Amazon's strategies that support growth opportunities for brands in India

According to GrowthJockey’s survey, these are Amazon’s top strategies that help the brands in India to grow:

I. Better understanding of customers

Amazon understands the nuances of the Indian market by investing its time, energy and resources. Since all customers are not habituated to reading online product reviews before purchasing products, it has set up kiosks in small retail locations. This helps entrepreneurs to provide assisted buying services for such customers.

ii. Efficient mobile app for smoother user experience even in slower network speeds

There are numerous customers in India who have to operate apps at lower internet speeds. Keeping this in mind, the Amazon app has been designed to provide a decent browsing experience while maintaining network constraints.

iii. Leveraging the latest technology, in the form of AI for address identification

It is a tough job to identify the correct location for delivery. So, Amazon employs machine learning and artificial intelligence for precision results related to delivery addresses.

iv. Protecting brands from counterfeits through the removal of fake products

Amazon India team has designed algorithms that can identify fake products and reviews from third-party sellers. This is to boost the trust among the buyers and sellers and ensure a safe online transaction.

There are numerous counterfeits and brand hijackers in the online market. Amazon offers a Brand registry to ensure the protection of the brands in such cases. It results in accurate product listings and lets businesses report any violators. The approved sellers can emphasize their listing through videos, which results in useful video ads for the buyers. Thus, even the smaller brands can stay safe from the black-hat sellers.

v. Increasing the number of Amazon fulfilment centres

To meet the rising demand of customers, Amazon has increased its network of fulfilment centres. This has led to a robust delivery network with enhanced customer experience. It helps numerous small and medium-scale businesses to efficiently fulfil their online orders.

vi. Ease of onboarding process for the third-party sellers

Amazon not just promotes the products of established brands but also helps the local markets to promote their products. It has come up with the "Tatkal" initiative to ensure that small-scale businesses can become eligible to sell their products on Amazon in just 60 minutes. Its vans visit small retailers and suppliers, and the pictures of the products, and catalogue are clicked by the concerned Amazon employees to get the sellers on board the platform.

vii. Boosting research and development

Amazon's local R & D centre has committed to understanding the Indian market nuances for creating a superior user experience.

Best eCommerce tactics that made Amazon successful in the Indian market

Since the launch of Amazon in 1994, it has become an eCommerce behemoth today and the favourite among sellers and consumers in India.

Here are some of its eCommerce tactics which have made it a successful giant in the sector today:

i. Focusing on customers' needs

The long-term growth of Amazon has resulted from focusing on the needs of Indian customers. This customer-focused approach has resulted in customer satisfaction and retention. There is a section for recommended products on the Amazon app/web page, which is based on previous purchases and searches by customers. This eases their purchase decision by showing them the best options, besides keeping them engaged to keep browsing for more products.

Online businesses meet their customers' needs by having the right products and marketing them well. We at GrowthJockey help online businesses with impactful advertising and marketing strategies. This creates awareness about the products besides their availability online, so more people buy them and get their needs fulfilled.

ii. Using data analysis for understanding customers better

Data analysis done by Amazon, helps it to understand every niche in the Indian market. It accordingly lets the local and small-scale businesses in India join the platform, to cater to customer needs. Customer retention is ensured through the best service.

Today, new online businesses are taking the help from GrowthJockey to use the trending technology in business for a better understanding of customer needs and makes the most efficient use of data and helps businesses to connect with required resources, so they can flourish.

iii. Winning the trust of customers through reviews and Q&As

79% of people trust online reviews and this is what people trust the most with Amazon products. It also has a question-and-answer section where users who have purchased the product already answer the questions. The reviews with the "verified purchase" flag add to its trustworthiness

All these give customers a clear idea of whether or not they should go with the product. Such things act as the best guidance for customers and hence they value it even more than discounts, offers**,** and coupons.

iv. Loyalty program to provide early and exclusive access to special deals and offers

Loyalty programs are believed to boost engagement and profitability significantly for companies. Amazon Prime launched in 2005 was the company's loyalty program which offers free shipping along with other offers to the subscribers. This got significant attention in 2015 during Amazon Prime Day and gradually evolved to the extent that it had $11.19 billion in global sales in 2021.

The best part is that people are interested in this even when they have to pay an annual fee to join it. Customers are more satisfied and feel that the Prime membership is worth the special discounts, entertainment, free shipping, and early access to exclusive sales by Amazon. Loyal customers who earn through such techniques In E-Commerce opportunities, always benefit the organisation in the long run.

Conclusion

Amazon India's staggering statistics for buyers as well as sellers are quite impressive. Various E-Commerce trends have started after its massive success, which other eCommerce businesses are also following. The majority of the sellers continue to stay profitable on the platform. Today, you can sell anything on Amazon and consumers can also get anything at competitive prices.

In the era of the growing popularity of E-Commerce In India, Amazon has become a popular household name. This is because, right from groceries, to seasonal gifts, electronic items, or almost any other thing used in everyday life, you can find everything here at great prices.

At GrowthJockey, our sole focus is on creating custom solutions that address the unique challenges faced by our clients in the e-commerce industry. We are committed to helping businesses of all sizes, from small-scale enterprises to large corporations, harness the power of technology.

Get in touch with us today to scale your business with our expert solutions !