eCommerce Retailers Flipkart, Amazon Announce Blockbuster Investment Plans

Just after a day that India’s largest e-tailer announced investing $1 billion of fresh funds in the nascent but fast-growing domestic eCommerce sector, Inc, announced that it would invest a further $ 2 billion in India.

Having opening shop in India in June 2013, the global e-tailer has upped its ante on Flipkart by announcing various sops for online customers like same-day delivery, adding new product categories, and slashing prices to unbelievable levels. Alongside, it has also launched a prolific high profile advertising campaign.

Both Amazon and Flipkart are in the race for the top spot in India’s $ 13 Billion eCommerce sector where a heated two-way battle seems to be emerging fast. The online market space in India is shared by other players such as Snapdeal, Jabong, and eBay Inc.

Amazon had not disclosed its investment plans on prior occasions, However, with Flipkart’s announcement on its massive one-billion dollar fund-raise, Amazon quickly closed the gap by announcing its block-buster investment plans. This now takes the battle between the two eCommerce giants to a higher level.

According to Jeff Bezo, CEO of Amazon, his firm will gross a million dollars in gross sales since its foundation in India, in what he said is set to be the fastest growing market where Amazon does business. In a similar development, Indian eCommerce giant Flipkart achieved this milestone in the beginning of this year.

The Flipkart announcement, which had already raised a lot of rumbling in the domestic eCommerce scene, coupled by the subsequent announcement by Amazon, has generated much pressure on the other players such as Snapdeal and others to raise more capital. With the game already becoming juicier, it is clearly starting to reveal that perhaps only those with deep pockets will survive in a market that is already becoming backed up by gargantuan sums of investor money.

According to Bezos, the Indian customer base has responded massively to Amazon, which has far surpassed the c0mpany’s expectations. He further added to say that this meant a lot of the potential of the Indian economy, and for the growth of eCommerce in the country. According to Bezos, Amazon’s investment plans mean that the company can continue to think big and innovate, while raising the bar for Indian customers.

Currently, Amazon is estimated to be clocking about $ 500 million in gross sales. The company is planning to expand its product selection by launching new product categories, even though it has existing 28 categories currently. It plans to improve its delivery experience for customers, while introduce lower cost structures for sellers. Amazon also intends to push its mobile platform according to a senior company spokesperson.

This reveals the aggressive growth strategy that Amazon is putting in place vis-a-vis Flipkart. With a scenario that expects 5 times growth over the next few years, there exists a strong possibility that there will be a two-way battle between Flipkart and Amazon in the near future.

To summarize, although Flipkart announced raising of $ 1 billion in funding and indicated to the market that it may have been able to maintain its lead over Amazon, however, with this investment of $ 2 billion, Amazon has clearly indicated to be at the number one position in the Indian eCommerce market.

Flipkart is going places within just seven years of its launch and is giving Amazon a run for its money. You too can script your eCommerce success story and get your own eCommerce website through our professional eCommerce website development services.

Harshal Mazmudar

Harshal is working as a digital marketing manager at Krish Technolabs, uses the web to drive online visibility and generate leads that have resulted in huge ecommerce success. His incessant hunger to outperform is the real drive that keeps him competitive in the online hemisphere.

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