Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Amazon India say services boosting large appliance sales

Published 10/15/2018, 02:28 PM
Updated 10/15/2018, 02:30 PM
© Reuters. FILE PHOTO: An employee of Amazon walks through a turnstile gate inside an Amazon Fulfillment Centre (BLR7) on the outskirts of Bengaluru

By Sankalp Phartiyal

MUMBAI (Reuters) - Amazon's investment in an extensive delivery network, and offering installation services and monthly payment plans, helped make large appliances a major category during its annual festive sale, the head of its Indian business said on Monday.

The bulk of orders for goods such as washing machines and refrigerators came from India's smaller towns and cities, said Amit Agarwal, adding offerings like extended warranties and same day installation paid off.

"Removing the worry from shopping works," said Agarwal in a telephone interview, as Amazon (NASDAQ:AMZN) wound down its five-day annual festive season sale on Monday.

India's October-December festive season is the time most households buy big-ticket items.

Smartphones were the largest selling category in terms of value, while fashion was the biggest by units sold, he said.

Amazon's private label brands - that include everything from dry fruits to backpacks - sold 10 times more than during the e-tailer's festive sale last year.

Almost 80 percent of Amazon's new customers and half its new Prime members are from smaller towns too, Agarwal said.

Prime, Amazon's loyalty program that offers faster delivery, and free music and video streaming services, has helped Amazon attract tens of millions in India, making it Amazon's fastest-growing Prime market globally.

Sales of new sellers participating in Amazon's festive event also grew, with over 7,000 sellers clocking upward of a million rupees each, Agarwal said.

"For us we are seeing very broad based success across all our sellers," he said.

© Reuters. FILE PHOTO: An employee of Amazon walks through a turnstile gate inside an Amazon Fulfillment Centre (BLR7) on the outskirts of Bengaluru

Amazon vies with homegrown Flipkart in India's burgeoning e-commerce market, tipped in a few years to be worth $200 billion annually. The rivalry has increased this year after U.S. retail giant Walmart (NYSE:WMT) bought a majority stake in Flipkart, whose festive season sale ended on Sunday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.