Tier 2, 3 cities fueling Amazon’s growth in India

E-commerce giant Amazon is placing a strong focus on baby, pet, and gourmet groceries in India, according to Nishant Raman, Director, Core Consumables at Amazon India. “E-commerce in India is still in its early stages, accounting for just 3-4 per cent of total retail consumption. The sector is propelled by increased internet penetration, savvy and well-informed customers, higher disposable incomes, and innovative supply chain models that enable the delivery of daily essentials within the same day. As a result of these factors and India-specific innovations across interactive avenues like voice, video, and regional language this has become possible, says Raman, in an exclusive interview with Bizz Buzz. He also sheds light on the company's commitment to providing a vast product selection, fast delivery, and an unmatched shopping experience for Indian customers

How important is the baby, pet, and gourmet groceries product category for Amazon.in?

At Amazon, our focus is to provide customers with a vast and diverse selection of products including health essentials, household and personal care products, baby essentials, gourmet groceries, and pet care among others, best-in-class delivery, unmatched value, and a great shopping experience. We offer millions of products to our customers from national and international brands and are committed to being a trusted one-stop online store for customers' diverse needs. To meet the evolving needs of our customers, we recently launched an International Baby Store featuring products from renowned brands such as Bambo Nature, Cybex, and Baby Brezza. We also offer our customers a curated baby wish list store to create their product list with a welcome reward and gift box, customers can refer to product buying guides, view products through 360-degree imaging, and even avail installation services.

Moreover, with the festive season around the corner, customers can enjoy great deals on a wide selection of products including handmade and gourmet chocolates, sugar-free and gluten varieties, grooming gift packs, and much more.

What kind of customer demand is Amazon.in seeing from metros and non-metros for everyday essentials and health supplements?

The online retail market is experiencing rapid growth in metros and emerging smart cities. Tier two and three cities are expected to lead both volume and value growth due to their swift urbanization pointing to a future where digital marketplaces become essential pillars of everyday shopping. We are experiencing robust demand from both metros and non-metro cities. However, the focus shift toward tier two and three cities reflects in consumer shopping behaviour as well.

Today, 80 per cent of our new customers and 70 per cent of customer orders are coming from tier 2 and tier 3 cities with a rise in demand for ayurvedic products, multivitamins, nutritional supplements, dry fruits, and more. This indicates a strong acceptance and growing demand for a wide selection of products, value, and convenience of fast and reliable delivery across diverse regions.

What is the overall selection of products available on the platform for baby, pet, health, and gourmet groceries? Could you name a few international brands that are available on the platform?

Amazon.in offers thousands of products across baby, pet, and gourmet groceries, featuring a wide range of international and local brands from trusted sellers and brand partners. Some of the renowned international brands available across product categories include Harrington’s, Orijen, Acana, Lindt, Milka, Kraft, Medjool Dates, Chicco, Baby Brezza, Cybex, among others. We also have a wide range of health supplements from top brands like Dymatize, My Protein, Garden of Life and BSN to cater to our customer’s growing health needs. The wide and diverse selection of products ensures that our customers' preferences are met for their everyday needs and special occasions alike.

What are the five most unique products that you see customers purchase on Amazon.in?

Customers love shopping on Amazon.in due to the wide selection of products we offer, many of which are unique and hard to find elsewhere. Among the intriguing finds bird diapers, bacon bourbon relish, reptile apparel, dried mealworms and bursting fruit punch eyeball candy would be my top picks.

What exclusive benefits do prime members receive when shopping across these categories?

Prime members enjoy several exclusive benefits when shopping on Amazon.in. These include free same-day or one-day delivery on a wide range of products, unlimited five per cent cashback on all purchases using their co-branded ICICI credit card, access to exclusive deals, and early access to our major shopping events, including prime day. These benefits make shopping more rewarding and convenient for our prime members in India.

What initiatives has Amazon.in introduced to improve the customer shopping experience? Are there any subscription or recurring delivery services available for customers? Any other features you would like to highlight?

We have a Subscribe and Save (SnS) program that offers seamless payment experience for recurring orders across over lakhs of products, ensuring reliable and on-time deliveries. Customers can set up automatic deliveries for weekly, monthly, or customized intervals, receiving constant special subscription prices from sellers. The subscribe and save program provides zero-click ordering, combining convenience and savings. The program offers automatic deliveries of baby essentials, pet food, treats, and supplies with up to 10 per cent additional savings, free shipping, and easy cancellation options. Customers can access top offers, buy more, save more deals, Amazon Pay rewards, and coupons.

Amazon.in has also introduced several customer-centric features to consistently improve the shopping experience. Our upgraded search functionality displays different product options that are directly within search results, simplifying the process for customers to find what they are looking for. This also makes it easier to discover seasonally relevant products ahead of festivals and special occasions. In addition to this, we have launched an ‘everyday store’ to replicate the traditional supermarket shopping experience. This store features a curated selection of top-selling items across various categories, including health and household, beauty, groceries, baby products, and pet supplies. With specialized aisles such as buy it again and pick up where you left off, customers can enjoy a streamlined and convenient shopping experience, effortlessly finding their favourite products. We will continue to invest and innovate on behalf of our customers to provide them with a great shopping experience on Amazon.in.

What is the growth plan for Amazon in India?

E-commerce in India is still in its early stages, accounting for just 3-4 per cent of total retail consumption. The sector is propelled by increased internet penetration, savvy and well-informed customers, higher disposable incomes, and innovative supply chain models that enable the delivery of daily essentials within the same day. As a result of these factors and India-specific innovations across interactive avenues like voice, video, and regional language this has become possible. Today more than 85 per cent of customers shop on their mobile devices and 65 per cent of orders come from Tier II and Tier III cities and towns. We recently announced that we deliver the largest selection of products to our prime members, more than ever before, same day, or faster and our prime members get free unlimited same-day delivery across 10 lakh products and next-day delivery across 40 lakh products on Amazon.in. We serve our customers’ needs with a wide selection, reaching across 100 per cent serviceable pin codes with fast, reliable and convenient delivery options. It's still day one for us, and we are dedicated to continuously improving and expanding our services to shape the future of e-commerce in India.