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Amazon India head Amit Agarwal reports a growing user base despite challenges of FDI policy change

Published
today May 16, 2019
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Amazon India continues to see its customer base grow and has recovered from its organisational changes made in reaction to the new foreign direct investment regulations that came into effect on February 1.

Amazon India is still seeing its customer base grow rapidly in its seventh year in India - Archiv


Amazon India’s head, Amit Agarwal has expressed some uncertainty over the government’s new FDI regulations but maintains that they should be used to help both businesses and customers moving forward. “There has been a lot of conversation if this was the right policy for the e-commerce industry,” Agarwal told ET Bureau in an interview. However, he is certain that the regulation change will not affect his business. 

“We were compliant even with the new policy, but some of our sellers felt the need to strengthen their compliance so they took off some of their selection for a period of seven to eight days,” said Agarwal about the FDI regulations. “But, we are back and growing as healthy as before.”

Amazon, which entered the Indian market six years ago, has not seen the change in FDI regulations affect its growing customer base. “The rate at which we are acquiring new customers continues to be as strong as it has ever been and is growing every year,” said Agarwal. “The conversion of settled customers into Prime members and the engagement of Prime customers into super Prime customers is also growing.”

The business is also bullish on growing its Prime user-base in the country. “When I look at the next five years, as we try to get to the next 100 million people to shop with us, the first 100 million users will convert into Prime customers,” said Agarwal.

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