The January 20-22 three day sale of Amazon.com, Inc. (NASDAQ:AMZN) India in was not in vain. The sale was a great hit as the number of units bought was well beyond those of a normal day. The massive discounts from Amazon’s first edition of the Great Indian sale 2017 gained more that 200% growth in units bought. The likes of consumer electronics, Pebble wearables, and the Smartwatches segment received as much as 60% worth of discounts.
The platform was also attractive with its incentives of 10% on using SBI credit/debit card or Amazon Pay to buy products and 15% for making purchases from Amazon mobile app. However, given that a lot of these products will become obsolete in less than one year the throwaway price discounts, especially on Pebble devices were worth it.
Prime subscription was the highest selling product for the sale season
From every two orders, one of them was made by a Prime customer, which means Prime subscription had the upper hand. The Prime subscription program by Amazon, which is currently charging an annual fee of Rs 500 in India, gives customers free 1 and 2 day deliveries. Apparently, most customers’ embraced cashless transactions with a majority of them topping up their Amazon Pay balance 30 times more than a normal day.
Heavy investment by Amazon in its main Indian unit
The total investment in Amazon’s main unit total of over Rs 7,000 crore (10 million) in the last 12 months.
VP and Country Head, Amazon India, Amit Agarwal writes, “The significant momentum building upon our already triple digit year over year growth rate, and strong new customer growth with a preference for Prime strengthens our belief that customers across India are choosing us to find, discover, and buy anything online.”
The e-commerce company is facing competition from the likes of market leader Flipkart, which is one of the world’s fastest-growing markets for online retail. Meanwhile, Amazon’s stock closed at $808.33 a fall of 0.71 or 0.09%.