Amazon India says business is back to normal thanks to non-metro growth
Amazon India has experienced better growth than it anticipated in the wake of the second wave of Covid-19, with sales and customer growth being led by non-metro towns, as business returns to normal.
The e-commerce giant has seen 85% of its new customers come from non-metro towns as rural shoppers drive post-lockdown recovery, ET Tech reported. The April to June period saw sales drop due to lockdowns across India, with some locations banning ‘non-essential’ e-commerce deliveries for a time, but the business believes it is back on track.
“It’s very clear that consumers recognise this [e-commerce] as a safe way of shopping,” said Amazon India’s vice president for consumer business, Manish Tiwary, ET Tech reported.
“From the time some of the [lockdown] constraints have gone, the consumer demand is very buoyant. Our new customer acquisition is well ahead of plan. Our Prime members are buying more frequently and other customers, who are not Prime subscribers, are buying across a larger number of categories.”
Amazon India is gearing up to launch its Prime Day sale event from July 26 to 27. The business had previously planned to hold it earlier in the year, but had to postpone it due to the second wave of coronavirus. Feeling that customers are ready to shop with confidence again, Amazon will now hold the sale this month and feature a wide range of multi-brand clothing and makeup products among other items. Last year, Amazon India reported sales of between $500 million (Rs 3,326 crore) and $600 million over the sale period.
“We see a better uptick happening in non-metro markets and that’s being driven by more customers coming from there,” said Tiwary. “In terms of customer growth, non-metro markets are doing better.”
Copyright © 2021 FashionNetwork.com All rights reserved.