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Amazon India: Small Cities Make Up for 50% Sellers and 65% Customers

In a recent report on Global exports by Amazon Sellers, it was observed that Indian exporters benefitted by a huge increase in their growth of global exports business in 2017 through Amazon’s Global Selling Program. An increase of almost 224% could be seen precisely.

The report also noted that the availability of Indian products in international markets rose by 500%. The company provided some drool worthy Amazon Offers on products including Indian tapestries, kitchen appliances, household items, home decors, jewelry, leather products, women’s apparels and clothing. The total estimate was made for over 90+ million products being shipped by 30,000+ sellers from India to foreign countries.

Delhi, Rajasthan, Maharashtra, Gujarat and Uttar Pradesh topped the states in India to lead with highest international exports, and most of the products were shipped and exported to Italy, Canada, Mexico, UK, Spain, Germany, France and Japan.

Apart from this, the most interesting observation made by Amazon India was the relevance of small cities and towns for it’s growth. This is because more than 50% of sellers and 65% of customers came from these tier 2 and 3 cities. Small cities like Indore, Surat, Ahmedabad, Ghaziabad and Pune have also become successful in using Amazon as a suitable platform to reach more market for their products.

The ever increasing mobile usage in these small towns is said to be the major reason for such an appraisable increase in customer base. Online shopping has never gotten so comfortable and convenient with access to easy technology. Another major reason is the quick price comparison that is done so easily nowadays. This also leads to more varied choices of products and services from even remote parts of the world.

Last year, Amazon’s Great Indian Festival sale recorded a huge increase in new customers as more than 85% of the purchases were made from tier 2 and tier 3 cities as compared to 70% in 2016’s sale. A good increase in sales from Mizoram and Arunachal Pradesh, and other new villages in Leh, Ladakh, Andaman and Nicobar and Lakshadweep was also recorded.

In regards to the increase in sellers on Amazon, it was revealed that usage of this popular retail site as a potential space to expand markets is profitable and reaps multiple benefits for the sellers by reaching out to a wider audience globally.

The total reach of Amazon products in major metros and cities of India is more than 98% + of the pin codes with their 50% + growth in sellers recently in the recent period.

Going by the recent predictions by Goldman Sachs, it is estimated that South Asian’s online retail market will grow by at least $103 billion by 2019-20. This trend is likely to continue in the near future as well, with more customer gains and potential sellers coming in from tier 2 and tier 3 cities in India with the help of better technology and mobile access.

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Posts by SpeakBindas Editorial Team.

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