US e-commerce biggie Amazon now boosts of having more sellers on its Indian e-commerce site than the country’s homegrown e-commerce giant, Flipkart. According to latest figures released by Amazon, it has doubled the number of merchants on its e-commerce platform from one lakh to two lakhs in less than a years period.
The global e-commerce major took a total of four years to reach the two lakhs merchants milestone in India.
Interestingly, the announcement comes at a time when the US biggie is handing out loans to third party sellers who are aiming grow their business through Amazon India. The e-commerce giant has given out more than a whopping $1 billion in small loans to sellers in the past year.
Last year, Amazon India unveiled a Special Lending Programme for sellers in India that helps sellers in acquiring secured and unsecured loans between Rs 5 lakh to Rs 2 crore from Amazon’s partners YES Bank and Capital First. In addition to this, Amazon’s Global selling programme, which was launched in the Indian subcontinent two years ago in May 2015 has over twenty thousand sellers today selling their Made in India products on the e-commerce major’s ten global marketplaces.
Amazon’s merchant acquisition milestone news also comes on the heels of Amazon Great Indian Sale witnessing a whopping 235% increase in new customer acquisition in tier 2&3 geographies in the South Asian country. Amazon’s last sale had sellers from 82 new pin codes receiving orders, thus taking the e-commerce giant’s total number of pin codes reach in India to a wow 3,382 where sellers received orders.
Releasing a statement on reaching the 2 lakhs seller achievement, Amazon released a statement saying, “This fast pace of adoption has come on the back of various unique, India-first innovations like feet on street teams, self-service registration, Chai Cart and Tatkal.”
Amazon India’s biggest rival Flipkart had 1.4 lakh sellers on board by December last year. Amazon’s impressive seller acquisition performance can also be somewhere attributed to Flipkart as the Indian e-commerce leader increased the commissions that merchants have to pay for selling on its platform by 5-6% in some key categories last year. In addition to this, Flipkart sellers now also have to bear the cost of handling products returned by customers.
Coming back to Amazon India, not only is the e-commerce company helping sellers in meeting the working capital they require to make their businesses work, but it also collaborating with several national and state government institutions in order to help local craftsmen, artisans and weavers.