Amazon is giving a tuff competition to the India’s largest online web retailers Flipkart and Snapdeal. India’s top retailer Flipkart Limited and local rival Snapdeal both are well aware of the fact that they are facing a critical test amid Amazon’s onslaught. All three top web retailers have flooded the TV shows, billboards and newspapers with ads and also offering huge discounts for the festive season of Diwali, which will make up one-third of the annual e-commerce sales. So ultimately this festive season will decide who is going to be the ultimate winner. Reaching a large number of consumers in India has never been easy as people in India still don’t trust entirely on the online stores. There are twenty-two official languages and people of each state or place have different consumption habits. Moreover, there are high real estate costs, supply chain inefficiencies, lack of skilled workers along with poor labyrinthine regulations and poor infrastructure. Moreover, the plan to become the top web retail store of the country where a large number of population is just learning to use the online shopping is not much good.
According to the estimations of RedSeer, the annual online sale is going to reach $80 billion to $100 by 2020 and the current estimate is about $13 billion. According to Mrigank Gutgutia, only two percent of the Indian population shops online as he covers the consumer interest trends at the Bangalore-based researcher. It is estimated that Amazon will manage to sell $81 billion merchandise by 2050 as opposed from $3.7 billion last year. Amazon also tried the Chinese market but it, unfortunately, failed there, all thanks to the large numbers of China’s local retailers and the dominance of Alibaba Group Holding Ltd. The biggest challenges and biggest opportunities are both in India. Cheif of the Amazon said that it is going to be a great Diwali this year. Amazon is now recruiting sellers at a very high speed to expand its inventory. Web retailers have made an army of orange and white chai carts with emissaries who to teach sellers how to list all the inventory and how to handle returns over milky chai tea. Amazon has also launched another service called feet-on-Street, in which it sends people on bikes to help merchants market and photograph their wares. So this Diwali Amazon is all set to give stiff competition to both Flipkart and Snapdeal.