The American multinational technology company, Amazon, which engages in e-commerce, cloud computing, artificial intelligence, and digital streaming, has recently announced that it is reducing some of its items. The brand is cutting down the products that sell under its brand like Amazon Basics.
This leader in the e-commerce market mentions to the Wall Street Journal, “We never seriously considered closing our private label business and we continue to invest in this area, just as our many retail competitors have done for decades and continue to do today”.
To find more, this article highlights the reason why Amazon took such a decision to reduce selling its own private-label business.
The giant e-commerce brand, Amazon started having its own brands like Pinzon, Amazon Basics, Mama Bear, Wag, Amazon elements, and more in 2009. Amazon decided to have in-house brands to boost increase margins and reduce competition, however, some of its brands are not doing well in the market for which they are reducing the items. One of its private label brand Amazon Basics is going to have less number of items to be sold.
This change in the system that Amazon is going to adopt is due to ‘weak sales’. However, they are not going to completely shut their private-label business, they will just reduce the number of items. As per some reports, Amazon has asked its team for the past six months to chop off some of its items and not to further go for reordering.
There are statements that Amazon finally came to this decision after Dave Clark, an ex-amazon executive made a review of how business is done by Amazon. Amazon claimed that Dave Clark made decisions that led to over-staffing at Amazon fulfillment centers and refrained from union progress.
Unfair Treatment of Third-Party Merchants
In 2020, the European Commission charged Amazon for using its power and data to push up its products for its benefit over other rival merchants. This was disclosed during a press conference on an anti-trust case with Amazon at the European Commission (2020) held in Brussels.
In addition to accusations, the European Commission has also opened up an investigation to look into the matter that if Amazon gives exceptional treatment to its products and to vendors who use its delivery benefits.
The controversy does not end here, as the Commission has also put up statements that Amazon has no right to use third-party’s activity and data to its benefit since they are its competitors.
The dualism act by Amazon has also drawn scrutiny issues in the USA. They had been asked to defend themselves from these allegations in writing, with which they had disagreed.
In their defense, Amazon claimed that the company has always been helpful to other merchants. The brand made several statements in its defense that they only represent 1% of the world’s retail market. Furthermore, they have also claimed the brand has supported small businesses for the past 20 years in comparison to any other retailer.
In efforts to ease the regulatory pressure, Amazon is now reducing the sale of its products. Amazon is doing all of this to resolve its two anti-trust cases issued by the European Commission.
The other case which was opened by the EU is to investigate whether the giant retailer favors those merchants that use its logistics and delivery system over other sellers.
Although as per reports, Amazon has contradicted these allegations, however, to settle down it has come to a concrete conclusion to make things transparent with the European Commission and keeping in view of their trust issues it is aiming to serve the European consumers and the 185,000 plus European small and medium-sized enterprises who are selling through their platform.
These investigations compelled Amazon a fine of up to 10% of its annual revenue worldwide.
Amazon has also made statements concerning its defence claims, that they are finding the new EU digital regulations, the Digital Markets Act completely one-sided. They have made remarks like, “unfairly targeting Amazon and a few other American companies.”
To come out of these accusations, Amazon now has taken up the step to refrain from using its competitor’s data and use it for its own purpose. The brand is now accepting to give equal status to other sellers while ranking their products with the feature, “buy box”. This feature allows shoppers the liberty to add items directly to their shopping bags.
Conclusion
This massive e-commerce performer, Amazon, is facing some difficulties right now. The company’s decision to reduce the selling of its products shows us that they plan to keep things ethical for other third-party merchants. Amazon is now looking for ways to give full access to other sellers on its marketplace.
FAQs
What is Amazon’s private label?
Amazon sells its products using its in-house brands which are its private labels. Some of the examples are Amazon Basics, Solimo, Happy Belly, and Amazon Fresh.
Is Amazon closing down its private label brands?
No, Amazon has decided to sell fewer items by its private labels due to low sales and due to anti-trust issues.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Vanity Wagon.
The love for organic beauty and personal care products is increasing in India. With people becoming aware of the long-term damage that chemical-containing beauty products can cause, the demand for organic and natural products is increasing like never before. This has instigated the emergence of many organic and natural care brands that claim to be chemical-free.
In the presence of too many choices, it has become tough for consumers to choose genuine products. To solve this confusion and to ensure that the consumers choose only genuine organic beauty and personal care products, Vanity Wagon was started. The vanitywagon.in picks and collects just the best organic beauty wagon and personal care products for you.
The vanitywagon.in is a Gurugram-based startup founded in the year 2018. It is a one-stop platform to buy genuine organic beauty products for beauty and personal care. Vanity Wagon offers the products included in the platform that are toxin-free, harmful chemical-free, cruelty-free, and completely safe.
Our belief is to create a shopping experience that is not only par satisfaction but also through an informed choice. We impart a large amount of information on our products and also on the general adoption of organic products in one’s life. We want to grow as a platform that is informative, trustworthy, and fun.
What is Vanity Wagon?
Vanity Wagon app is India’s First Natural Beauty Market with its headquarters in Gurugram. It offers all categories of products like Bath and body, skin-care, hair-care, makeup, men’s care, mom and baby care, beauty products, wellness products, and gifting options. The best part is that all the products available in Vanity Wagon are organic and natural.
According to some Vanity Wagon reviews has also established itself as an informative platform, where they share detailed information about various beauty products, beauty advice from experts, and the various benefits of switching to organic products.
One of the experiments that we did was with our own forum wherein we interact with individuals daily and not only reply to their queries but also post some legitimate–core information on organics and the natural personal care industry. The forum started as a pilot project but with the response, we realized how many information gaps existed in the market and decided to take it on as a long-term project.
Vanity Wagon – Organic / Online Beauty Industry in India
According to Red Seer Consulting, the Indian online beauty market is currently pegged at $150 million. The market size is growing 10 times per year and is expected to reach $1.6 billion by 2025. The Vanity Wagon tracking and interface are easy to use on both the website and app.
The market size of organic beauty wagon products is currently $42 million. The global market value for natural cosmetics and beauty products is expected to make shift from 30 billion dollars in 2021 to 50.5 billion dollars by 2027. Vanity Wagon believes in sustainable beauty and stands firm in its mission to educate the audience and deliver what’s best for them in the long run.
Vanity Wagon – Founders & Team
Naina Ruhail, Prateek Ruhail & Sahil Shrestha
Vanity Wagon’s founders are Naina Ruhail, Prateek Ruhail, and Sahil Shrestha.
Naina Ruhail is an established media influencer and professional make-up artist in India. She completed her MBA in 2012 and then went on to specialize in beauty & skincare with her education at the London School of Styling and the London School of Makeup. She has 7 years of professional experience in marketing and brand building.
Prateek Ruhail is an MBA from the University of Oxford with a Dean’s Commendation Award. He has 3 years of Project Finance (Legal) and 4 years of Business Management experience. His area of expertise is business strategy and core management. He also has led mega infrastructure project financings, thereby understanding the nuances of financial management in India.
Sahil Shrestha has an educational qualification in management and technology. Post completion of his MBA in 2012 he went on to work in different facets of operations. He is one of the main Vanity Wagon founders, as he leads the operational vertical, bringing the best of his experiences onboard.
The idea was thought of by Naina post her stint in London, UK. The market research and study showed tremendous industry growth and also a promise for a brand like Vanity Wagon to create a niche space for itself.
That being said Prateek and Naina went on to initiate the set-up of Vanity Wagon India when Sahil Shrestha (the operational team leader) jumped in and went on to complete the founding team.
Vanity Wagon – Name & Logo
Vanity Wagon Logo
The team wanted the startup name to focus on two strong points – ‘An Indian woman’s beauty box’ and ‘pan India coverage’. The initial names were around beauty and organic and natural. Several names came up, however, nothing was strong enough to focus on our two strong points – ‘An Indian woman’s beauty box’ and ‘pan India coverage’.
The Vanity Wagon logo and name are based on a beauty box that holds a Woman’s care needs and we want to build the whole personal care space of a Woman’s life with organic–natural products. Hence came the idea of the Vanity Wagon website.
Most often women in India would refer to their beauty arsenal by the term Vanity Kit. Further, the Wagon symbolizes the team traveling from household to household, city to city, and reaching every nook and corner of India, while servicing the personal care needs of an individual.
The idea was taking form while Naina was learning beauty & skincare at the London School of styling and London School of Makeup. She noticed that in the UK shopping for organic and natural beauty care products was easy, as dedicated platforms were offering just organic and natural beauty and personal care products. However, in India the beauty and personal care market is fragmented.
Besides, the market research and study showed tremendous industry growth and also a promise for a brand like Vanity Wagon India, to create a niche space for itself. The idea was validated when the first stage of research was conducted about the beauty market in India.
The organic beauty market with the fast growth of over 52% proved that the consumers of India were making the switch and a marketplace like Vanity Wagon would just make it easier.
With the idea in place, the question in mind was how to go about launching the market, which brands to keep initially, which products and categories to target, and what consumer base to work on.
With several social surveys, A&B testing, and market research the team went on to finalize all these and a point to start from. Assembling the tech team, the base work for the portal – tech, design, graphics, was put in place and the idea was executed with a turnaround time of 4 months.
The launch of the Vanity Wagon website was led across all metro cities in India simultaneously with all the buzz that could be created. With a launch event for the media, blogger collaborations, and social media launch strategy in place, Vanity Wagon went live for India in 1 go and started servicing over 10000 pin codes on Day 1.
Vanity Wagon – Business Model
Vanity Wagon’s business model works on an upfront discount – inventory-driven model. There are many ways that you can avail Vanity wagon coupon code and offers.
Vanity Wagon – User Acquisition
Vanity Wagon Homepage
The first 10 customers came in very early for Vanity Wagon. With a pre-launch plan in place, the company gathered tremendous traction before it went live and the first 10 customers were acquired fairly quickly (in 2 days).
Vanity Wagon heavily relies on customer-centric promotions. It uses social media platforms and also paid and owned media to reach out to the target audience. As said by Prateek, owned media is working remarkably well for Vanity Wagon India.
One of the first campaigns we did worked well for us, owing to the team’s approach to it and the concept – ‘What Organic Means to You’. We did this campaign with bloggers, a few household women, and the real users out there. The idea was to understand what we need to do to make organics popular and the whole campaign was really helpful. With over 100 ideas on what organics can mean we knew which notes to hit and doing so earned great success in the short term post the campaign.
Vanity Wagon – Growth
Vanity Wagon operates out of Gurugram (Corporate Office) and warehouses at present in Delhi With revenue growth of 100% month on month, the company is destined for great success in the long term.
Starting with a limited brand base, it now boasts over 151 brands including some top players in Natural Beauty such as MyGlamm, Ruby’s Organics, Indulge Essentials, Raw Nature, and Biotique.
The User-base continues to grow steadily at 50-70% month on month and is driven by multiple sources online and offline Vanity Wagon works closely with every customer and runs to create a communal feeling wherein every user freely converses with our experts and benefits in every possible way even if there is no transaction involved.
Vanity Wagon – Funding & Investors
Vanity Wagon funding is bootstrapped and is working towards raising early-stage investment in FY 19-20. The shareholders at present are the founding members.
The cash flow for the vanitywagon.in funding has been fairly consistent with great support from our family and friends too. We have managed to create the right buzz in the market and are getting rewarded for that each day with our growing user base and repeat customers – Prateek
Recently in January 2021, the company raised over $200,000 in a seed round that included investors like Agility Venture Partners, Alfa Ventures founder Dhianu Das, actress Anita Hassanandani and angel investor Sanjay Nagi. The most latest funding was raised in October 2021 by the seed round.
The total amount raised by Vanity Wagon is $934k. The Vanity Wagon funding is said to be used to expand its global footprint, onboard more brands, and fulfill a larger consumer base.
Vanity Wagon – Startup Challenges
According to Prateek, the biggest challenge for the Vanity Wagon app is to make the users switch. With so many nice-smelling, beautifully packed chemical products on the market, the majority of the user base is content with buying products that a celebrity endorses. Natural products are comparatively newer to the space of mainstream beauty and are slowly making their place in the market.
There are many platforms offering beauty and platforms online. Some of the Vanity Wagon competitors are the Nykaa platform, Purplle platform, and Dermstore platform.
While all other platforms offer all sorts of beauty and personal care products that may or may not be natural, Vanity Wagon’s USP is a dedicated platform for just natural and organic products.
Vanity Wagon reviews talk about the platform creating a space where an individual only has natural options be it in makeup, skincare, bathing essentials, or wellness. Everything on the portal is non-harmful chemical driven and makes it easy for a consumer to get hooked on clean beauty.
All our competitors motivate us primarily being Nykaa, having done so well in the last few years. They have gone on to create a community for beauty and we look to do that for natural beauty.
Vanity Wagon – Advisors & Mentors
Vanity Wagon India has advisors from different fields and tangents including – tech, marketing, and business strategy.
Col. A S Ruhail (Retd.) with a distinguished career in the Indian Army went on to successfully establish an educational venture. His core being strategy and business implementation, the Vanity Wagon website closely associates with him on major strategy standpoints and benefits in every way possible.
Mr. Mayank Kumar (IIM Lucknow) has a successful enterprise and advises Vanity Wagon on the technical growth plans and strategies.
Mr. Vaibhav Jain is a successful entrepreneur – marketer and angel investor. He offers his support in marketing and brand-building initiatives for Vanity Wagon.
Vanity Wagon – Future Plans
The platform claims to have sold over one lakh products and registered 5 times more growth since 2019. Vanity Wagon has great plans for growth in the future-
The company wants to serve customers through an omnichannel strategy, thereby aiming to open 15 stores by the end of 2022.
Vanity Wagon are targeting to have more than 200 brands associated with them by the end of 2022.
The company is planning to ship Indian Organic beauty products to 5 offshore territories and they are currently planning to start with Singapore and then move forward with other APAC countries.
The company is also planning to take over several brands to increase its business. The brands that are unable to fit the market due to money issues but have great potential in their products are on the target list of vanity wagons.
Vanity Wagon is a platform started by three individuals for the betterment of people. Vanity Wagon is a platform that promotes the growth and sale of nontoxic products. They promote the clean beauty marketplace. The beauty products that are available on their site all fulfill the criteria set by the Vanity Wagon team. Some of the basic information about vanity wagons is shared above.
FAQs
What are clean beauty brands in India?
Clean beauty brands sell products that are in harmony with our body and health and does not have any toxic chemical in them. Some of the most well-known clean beauty brands in India are Butterfly, FAE Beauty, Blur, etc.
Does Vanity Wagon sell original products?
As per the reviews collected by Vanity Wagon, the products sold by them are 100% original. Vanity Wagon is also known as the best platform to sell clean beauty products that do not cause any toxicity to the body and health.
Is brand Myglamm chemical-free?
Yes, the products made by Myglamm consist of no toxic chemicals in them. They are made with 100% free toxic formula.
Is MartiDerm cruelty-free?
Yes, all the products made by Martiderm are cruelty-free as they are not tested on any animal as well as there is no harm done to any animal in their production.
Who are the competitors of Vanity Wagon?
The competitors of Vanitywagon are Nykaa, Purplle, and Dermstore.
E-commerce in India is developing at a remarkable speed; emerging players like Flipkart and Amazon have proven their success stories. Currently, the E-commerce industry seems to be the ultimate winner in the business world. Several E-commerce websites are emerging and taking India by storm. When you are shopping, who doesn’t like discounts and great deals. Thanks to deal websites we have that options. Deals websites are intended to offer exclusive deals and products each time.
Deal websites in India save money and offer great deals while shopping from those E-commerce websites. You know there are numerous great deals online. However, you do not have the time to classify them as good and bad sites. In this article, we will talk about the top deal offering sites. So, without any further ado, let’s get started.
GrabOn is an online coupon and deals website in India that list various offers on online merchants such as Snapdeal, Flipkart, Amazon, Foodpanda, Jabong, and redBus, and updates them on their website. GrabOn declares that there are 4000 coupons from more than 2,000 dealers. It has over 40 million registered customers and receives 25 million page views. It gains commissions from e-commerce businesses for transactions. It is a brand owned and operated by e-commerce commodities company InspireLabs. GrabOn provides genuine and real deals on its platform.
Couponswala
Couponswala Website
Company Name
Couponswala
Location
Bangalore
Founded
2019
Website
couponswala.com
Couponswala offers some great shopping discounts, offers and coupons from some of the most prominent Indian websites like Flipkart, Amazon, Paytm, Makemytrip, and more. It provides coupons for over 1000 E-commerce websites. Couponwala started its journey in the year 2019 and has been offering exclusive and pretty amazing deals to the customers of some popular websites. The headquarters is located in Bangalore. It’s known for providing updated and genuine deals and coupons on its platform.
Mydala
Mydala Website
Company Name
Mydala
Location
Delhi
Founders
Anisha Singh
Founded
2009
Website
mydala.com
This is one of the oldest and most successful deal websites in India for the past six-year. Mydala is offering discounted deals across most of the categories. The company collects a commission as soon as the customer buys or books a deal. After that, the residual amount is paid by the customer at the time of redemption of the offer when he visits the retailer to avail facility. It is targeting over 410 million consumers in over 209 cities in India.
Nearbuy
Nearbuy Website
Company Name
Nearbuy
Location
Hyderabad
Founders
Ankur Warikoo
Founded
2010
Website
nearbuy.com
Nearbuy is a brand owned and operated by Nearbuy India Private Limited, it is a hyper-local online deals website that allows customers and local traders to discover and deal with one another. Giving local merchants and businesses more distinctness and business. It is currently operating in more than 35 cities in India and 18+ divisions and has over 50,000 retailers onboard.
Freekaamaal
Freekaamal Website
Company Name
Freekaamal
Location
Noida
Founders
Ravi Kumar
Founded
2010
Website
freekaamal.com
FreeKaaMaal.com is one of the head deals and coupon sites in India. It is a customer-driven website. Users can post the best deals they find on several e-commerce sites, and then the team selects the best out of them to promote them. Freekaamaal is partnered with more than 600+ online stores including, brands like Amazon, Flipkart, eBay, Snapdeal, Jabong, Shopclues, Myntra, and many more.
MyTokri
MyTokri Website
Company Name
Mytokri
Location
Delhi
Founders
Saurabh Gupta
Founded
2012
Website
mytokri.com
MyTokri is one of the prime online shopping deals gateways in India. Today, MyTokri is a renowned name to find quality online deals and coupons and turn the large industry into an online deals area. It lists thousands of online deals from 200+ e-dealers in India to help you get the most happening deals every day. MyTokri works on the concept of “New day New deals”. They also have a spot on their website where customers can find new and updated deals of the day. It also lists and maintains thousand of active discount coupons for online shopping websites.
DesiDime
DesiDime Website
Company Name
DesiDime
Location
Mumbai
Founders
Mehul Jobanputra & Jimish Jobanputra
Founded
2010
Website
desidime.com
DesiDime is a user-driven community for deals coupons and shopping online. Desidime is created to present a platform for users to cooperate, make friends, and share coupon information to make the best shopping deals. Started by cousins Mehul Jobanputra & Jimish Jobanputra and works as a community-driven social platform where people can contribute to the content, users can upload deals and coupons that they have found on the internet and can help others to save bucks.
Conclusion
There are other sites providing discount coupons and offers for online shopping for customers in India. The deal sites provide coupons for various e-commerce stores such as Amazon, Myntra, Flipkart, and many more for shoppers to get the product/service at a discounted price. With the rise of e-commerce in the country, seems like deal sites are thriving and will continue to thrive in the near future as well.
FAQs
What are deal sites?
Deal sites mainly provide good discounts and exclusive deals while buying products from and services from e-commerce.
Who founded Grabon?
Grabon was founded by Bhanu Raju and Spandan Jaggumantri in 2013.
Which is the most popular deal site in India?
Grabon is said to be the most popular deal site in India.
They say, there are hundreds of ways to make money on the internet. Rightly so, there are. From freelancing to starting up your own e-commerce business on the internet — there’s so much you can accomplish via the web. If you aren’t living in a cave, you must have heard about Amazon’s Fulfilled by Amazon (FBA) business model, something that has quickly turned into a rage among online sellers.
So, let’s assume you’re an online seller. Now, think of a setup where you get to choose the products you want to sell, along with the supplier who can meet the requirements, source, package and ship the same. All of this happens in one of Amazon’s fulfilment centres, where Amazon takes care of shipping from where things are taken care of.
Amazon FBA Homepage
No folks, it ain’t exactly the Amazon Affiliate thing. This is slightly different!
There are a few important things that one needs to grasp before starting the much enticing Amazon’s FBA business. However, the journey can be highly rewarding and fruitful if you get the basics right. It does come with its own share of pros and cons but that doesn’t take anything away from the fact that FBA provides a huge platform for sellers to make it big on the internet. Take a look at the pricing of the Amazon FBA.
Now that you’ve finalized the FBA business — knowing how to start FBA is important because it is where the money lie, let’s get that straight!
Before you ask yourself the much-coveted question — ‘ How can I launch an FBA business and make it successful? ‘, we have the answer! Let’s get a quick hold of the important steps to start one. Here they are:
Step 1: Pick That First Product That You Think Will Be a Winner
Well, It is time when you tone down your excitement and start researching for that one starter product — one winner that can be a potential game-changer for you. It must be noted that the first step is perhaps the hardest, as well as the most time-consuming part of the whole process as it demands a whole lot of research and study to get to that one product.
Nah! We don’t want you to take unnecessary pressure and be intimidated by the ask, but getting the right first product is integral for the growth that you’ve always imagined for yourself and your business.
The right product can simplify the journey ahead while picking the wrong one can make things tougher in the long run. If there’s little to negligible demand for your product, if the niche is super-competitive and the cost price is on the higher side — then it may have a negative impact on your profitability.
However, you can avoid all of it by devoting time to product research, rigorous brainstorming and zeroing down upon the right suppliers (more on that in the next step).
Note: Getting the right product isn’t just enough, as it marks the beginning of a continuous trial and error mechanism that will polish you and your business for what works and what doesn’t.
So, even if you get that potential winner — always remember there’ll always be better products or better suppliers for the same. But, at the end of the day, you need to remember that everything starts from something and this is your chance!
Pick a Market That Excites You, and Finalize Upon a Niche
Think Big, Start Small.
Start with what excites you, problems or products that you’re passionate about and then let your brain produce a brainchild — something that will lead to that one ‘winning product’.
It is important not to confine yourself while brainstorming. Think broadly and think differently — write your ideas down. You can always narrow them down later, so do not hesitate.
It is good to finalize upon a niche, rather than targetting broader categories as the competition is relatively less, and there’s more scope for growth and profitability in the long run. A product line based on ‘Electronics’ can be too broad to create the right kind of positioning but a niche like ‘smart wearables’ can help you position your business better.
Do a Lot of Market Research — Do it. A lot of it
Okay, so you’ve picked something that excites you! Great, now it is time you start indulging in some preliminary research for your product or niche. Start asking yourself questions, and keep looking for answers. This is when you can change yourself to find products that are potential problem-solvers for real-world problems related to your niche.
Let’s assume that you’ve decided upon this electronic neck massager. Your search can start from something as simple as googling about it. You can also search major marketplaces to check the list prices for this particular product.
Does your product belong to that $8 to $40 bracket? If so, it is a positive sign for your business since products that fall into that bracket make up for great ‘impulsive’ purchases. This shall help you to stock up accordingly.
You can upscale your research game by using tools that make the job easy for you to finalize that one potential winner. For example, you can use tools like Ahrefs for keyword research, analysing traffic on a particular keyword and coming up with the right kind of products based on traffic and footfalls on a given keyword. This can be instrumental in finalizing that perfect product title.
Next, you can check Best Seller Ratings (BSRs) on Amazon to understand what sells well on Amazon. Don’t let this metric determine your decisions. Rather, consider it as a validation for your niche. However, if there are too many items dominating a category, it may imply that there’s too much competition in that given category and it may be harder for your first product to breakthrough.
Using advanced tools like Jungle Scout and Helium10 can simplify this step and ensure effective market research that helps you upscale.
Avoid Competition — It Is Good but Not for Starters
Think of it this way. You wouldn’t want a crazy amount of competition rooting behind your first product because — it is your first product! No points for guessing, you would want a pretty smooth and seamless journey to establish yourself in the FBA business, and sadly — a competitive niche or category won’t be aiding you.
If there are big brands established for a particular product or niche, it is generally a red signal to get into that category as at times — categories are known by the brands leading them which also means that you’ve to accomplish or offer something miraculous with your product or marketing to breakthrough. Although, we would always want you to think big and make it big, breaking into categories with ‘brand whales’ can be tough, to say the least!
Selling via a private label can go a long way in starting and succeeding in an FBA business as it doesn’t just give you more freedom while running your business but also gives you a better shot at marketing your product to the top of the listings. All of us love brands and their marketing endeavours for a reason. Right?
Step 2: Sourcing The New Product
So, now that you’ve addressed the elephant in the room, and figured out what your product would be — another challenge awaits. The key is to figure out the source of your product — the suppliers.
Find a Reliable Supplier
Suppliers with a good reputation, great production facilities and on-time delivery commitments are crucial for the growth of your FBA business. As it all depends upon the cost, it is generally a good idea to get products from countries that are known for affordable production pricing like China and India.
If your supplier manufactures another range of products as well, then it may be a wise idea to be in their good books backed by good behaviour and on-time payments as they can be crucial for the growth of your FBA business.
Cracking the ‘Shipping’ dilemma
Sourcing and shipping are largely interrelated as sourcing would be influenced by the shipping terms i.e. by train, by air or by cargo. For domestic shipments, air and trains are generally preferred whereas international terms include water shipment and cargo, as international sellers operate in some of the most competitively priced markets, and hence shipment via water becomes a no-brainer.
Step 3: Market Your Product Extensively
Picked a product, and found a supplier too? Damn! Things look great but then you realise that the crucial part would be to market it the right way so that the right kind of audience reaches out to get connected with your brand.
A listing on Amazon does guarantee some eyeballs here and there, but the real deal lies in the fact that the positioning can mostly make or break the product for you. The right marketing mix can help your product grow leaps and bounds on Amazon and that is what we want. Isn’t it?
Get a Winning Product Description That Rakes in Traction
We are sure you’ve figured out the mechanism and your product too looks absolutely incredible. That is for sure! However, as sellers we want our customers to understand our mission, vision, culture and what we tend to market through our products and the product description goes a long long way in establishing all of that and even more.
The copywriting, SEO, pictures and detailed product page are crucial for the success of an FBA business. Remember, Great product descriptions succeed at establishing a connection with their masses in ways that conversions start following automatically.
Running Ads and getting PPC campaigns to help in establishing the connection between you and your audience. Right from product reviews to the ads, every aspect of the brand’s decision-making revolves around those who’ve used it — the customers in the first place.
Once you get hold of all of the above, there’s nothing that would stop you from making it big, and that is the beauty of this era.
FAQs
Is it still worth starting Amazon FBA?
If you are just started selling on Amazon and only sell your products on Amazon, Amazon FBA is worth the money. However, It can be quite expensive for sellers who have low-profit margins.
How much does the average Amazon seller make?
An average Amazon seller makes $1000 to $5000 a month.
How much does it cost to start an Amazon business?
You need to have at least $5000 to $10,000 to start selling on Amazon.
The entertainment industry has evolved drastically over the last few years owing to the streaming websites, with growing choices for accessing content online. Digital media has made its way through a remarkable evolution over the last few decades. New platforms and streaming sites have emerged that allow movie/series lovers to watch video content over the Internet.
The growth of online streaming changed the multimedia and entertainment ecosystem. Several names come to mind when talking about online streaming but no one can beat Netflix and Amazon Prime Video. These are one of the widely used video streaming services and people’s favorite choice.
With online Streaming sites coming into a discussion, the inevitable question of which of them is the best also comes into the picture. There is a multitude of content to watch on the Internet depending on the taste of the viewers.
Netflix is an online streaming video-on-demand subscription service which provides its viewers to access to a massive list of movies and TV shows from around the world for a nominal monthly or annual fee.
It was founded by Reed Hastings and Marc Randolph, the entertainment company has grown from a DVD mail-order service to a global Internet TV sensation. Netflix has undergone several ups and downs since its inception in 1997 but evolved dramatically over the years to become the global leader of mainstream media. It’s the most common digital name today.
Amazon Prime Video is a digital subscription-based video-on-demand streaming service owned and operated by Amazon that offers a myriad of movies, TV shows, documentaries, comedy specials, and so on. It costs INR 999 a year which allows viewers to enjoy unlimited video streaming and ad-free music on the top of Amazon-exclusive deals plus free two-day shipping after a 30-day free trial.
Streaming sites in Indian Market Share
Netflix vs Amazon Prime
Netflix
Amazon Prime video
Netflix broadcasts 4k and HDR content and it excels in video and sound quality making it stand out
Amazon Prime Video fails to play high-resolution HD content on low-speed connection
You can only stream movies or TV series on it
You can get other benefits such as Amazon Prime Music and faster Amazon delivery
Netflix supports wide range of devices including gaming consoles
Amazon Prime does not support Gaming consoles
Netflix has extensive library of titles including several renowned in-house documentaries as well as series
The library and content of Amazon Prime isn’t as extensive as compared to Netflix
Netflix is more expensive. In India, Netflix’s mobile plan starts at INR 199 and goes upto INR 799 per month
Prime is cheaper than Netflix. Users are charged INR 999 annually and INR 129 monthly for Prime
Just 897 Netflix movies are not rated
31,066 of Amazon Prime’s movies are not Rated, which means the movies are too old for rating or are too small to go through the rating process
Netflix provides limited downloads to the user
Amazon Prime Vidoe does not limit the user for the video downloads
It’s always about good content. Both Netflix and Amazon Prime Video have more than their fair share of amazing content. In Netflix’s case is House of Cards, Narcos, Orange Is the New Black, The Crown,BoJack Horseman, and Daredevil, to name just a few of its Originals.
On Amazon Prime, you got Bosch, The Man in the High Castle, Transparent, Mr. Robot,Hand of God, American Gods, Sneaky Pete, and many more. A particular show in mind will push the viewer towards a particular site.
When it comes to movies, Netflix caters an evolving catalogue of classics, relatively new movies, and some exclusive indie films. Amazon Prime Video also offers up a similar catalogue but it’s more focused on TV shows than films. Note that Prime Video also requires you to pay to watch some films despite having a Prime membership.
The total amount of TV shows and films available on both services continuously gets updated and evolve from time to time.
For a college student with a valid .edu address, one can pay just INR 499 per year for Amazon Prime. Everyone else has to pay INR 129 per month for Amazon Prime. Prime customers can use up to 3 screens at a time.
Netflix charges INR 199 – INR 499 per month for one screen option, INR 649 month for two screens plus HD access, and INR 799 month for 4 screens plus Ultra HD access.
Amazon Prime is a bundled service. Apart from Prime Video, you also get a host of other benefits like free two-day shipping on Amazon India website, early access to Amazon sales and deals, and more. Netflix is a pure video-streaming platform.
Not just video streaming, Prime also offers music streaming services with its Prime Music. It has a music library across 12 languages – English, Hindi, Punjabi, Tamil, Telugu, Marathi, Bengali, Malayalam, Kannada, Bhojpuri, Gujarati, and Rajasthani.
Amazon does not charge you extra for the 1080p Full HD and 4K Ultra HD resolutions on any of its plans, whereas on Netflix you have to pay for 1080p and 4K Ultra HD video quality for INR 499 monthly plan. Also, Amazon lets you stream videos on three different devices simultaneously. With Netflix, you have to pay INR 649 if you want to stream it on four devices simultaneously.
Since Prime Video also comes with free 2-day shipping for all Amazon products and sweet deals on subscription services, Amazon is the winner in this category.
Is Netflix better than Amazon Prime?
Shows offered by both the platforms offer very competitive content. Which makes it even harder to decide on which one is the best.
Over time, the meaning of the phrase “Netflix and chill” has evolved. It has gained popularity on the internet and users are actually using Netflix more to chill and enjoy the engaging content. What Netflix does is it premiers every episode of a season at once, tempting audiences to binge-watch a series upon release.
You might’ve seen everyone going crazy about shows they can’t get enough of (Black Mirror, 13 Reasons Why, Stranger Things, for starters), these are Netflix originals. The original movie selection includes 2020 Oscar nominees like The Two Popes, Marriage Story and The Irishman.
Netflix has become such a trusted source in the industry that content that shows in it are instantly boost in attention just from being on the service. So, the question is no longer whether someone wants Netflix, they already have it one way or the other.
You will find Tamil, Telugu, Bengali, and similar more regional movies on Prime but not on Netflix. Netflix has a rich library of international content but regional content still needs to grow. But Netflix is also expanding in India and planning to tie-up with local production houses to produce regional content.
Last year, Netflix had mentioned its plans to launch 22 original movies and 11 series from India by 2020. Netflix’s entry into making movies and series in regional language might prove game-changing as a large part of India’s audience prefer to watch content in their native language.
However, Amazon evidently suggests that it is quantity more than quality. However, Netflix also has more titles in IMDb’s lists of the top 250 TV shows and movies, which combine user ratings and popularity to determine its rankings.
Annual Video Budget of Amazon Prime Video and Netflix
Conclusion
The cheaper plans get picked up all the time. Amazon Prime Video is an amazing service, and it saves users from buying expensive Netflix membership. On the other hand, people who do not want to compromise on the good content, they easily love Netflix.
Currently, Amazon Prime is not as entertaining as Netflix but some users are fine with it. Amazon Prime Video has more than enough content to keep the streaming habits going strong. The choice is subjective here.
Amazon Prime is cheaper compared to Netflix. Amazon Prime monthly subscription is available at INR 179 whereas for Netflix subscription price for basic plan ranges between INR 199 – INR 649.
How many subscribers does Amazon Prime Video and Netflix have?
Subscribers of Amazon Prime Video and Netflix are:
Amazon Prime Video subscriber: 21.8 million
Netflix subscribers: 5.5 million
Which country is the leading market of Netflix?
The United States is the leading market for Netflix followed by Brazil.
Which country is the leading market of Amazon Prime Video?
United Kingdom is the leading market of Amazon Prime Video.
How many shows are available on Netflix and Amazon Prime Video?
Number of Movies & Shows on Netflix Vs Amazon Prime Video:
Netflix: 15,000 Movies and TV shows
Amazon Prime Video: 30,000 Prime Video Movies and TV shows
Amazon, the company that started as an online retailer for books back in 1994 is now the largest e-commerce company in the world. As of January 07, 2022, the company is worth $1648.78 billion.
Today almost everyone depends on Amazon and with good reason. You can find almost everything you would ever need delivered right to your doorstep. So how did Amazon get where they are today?
Most importantly they’ve managed to stay at the top of the e-commerce business even with the rise of new competitors. To understand this growth and stability shown by the company, we’ll have to take a look at their history and analyze their biggest techniques that help them stay at the top.
Founder and former CEO of Amazon, Jeff Bezos financed Amazon with $10,000 of his own money to get the company up and going in 1994. Amazon at that time was completely operated by Bezos, his wife, and a small staff team working in his garage in Bellevue, Washington. Shortly after in 1997, Amazon went public with a $300 million valuation at $1.96 per share.
Jeff Bezos working from his office in 1999
Amazon later on in 1999, allowed third-party sellers to sell their products using their website. Since the company already had satisfactory growth in the online sphere, retailers started using the platform with the goals of expanding their public reach and economy. Just within 4 months of letting third-party companies sell, over 250,000 customers had bought goods from a variety of different companies through Amazon.
Every year Amazon has been getting better, offering more services and a better customer experience than before. In 2005, Amazon introduced its customer loyalty program known as prime. Prime gave users that extra fast delivery and service speed that they needed for a small monthly fee.
Prime also expanded on to provide media services such as prime movies, music and gaming. Customers were more than happy to pay the monthly subscription for what they would’ve otherwise missed. At least that’s how the consumer mentality boosted Amazon’s sales after it launched prime.
The very next year the company went ahead with Amazon Web Services(AWS) to consider and profit from the various cloud computing needs of the world.
Amazon has also been actively developing the Amazon Echo line of smart products along with their assistant Alexa. The company has been growing ever since. Every year new products get added to Amazon, which starts bringing in new customers for the company.
Amazon’s success isn’t just because of the risks they take or companies they endorse, rather it’s mostly due to some clever marketing techniques. Communicating a product’s nature and value to a customer is essential for a successful e-commerce store. Here we’ll go through some of the well-known pricing strategies used by Amazon to boost sales.
1. Prestige Pricing
Consumer stores and shopping centers often use charm pricing as a way to get more sales. It’s common to see the price of a product just a cent below its actual cost. Prices like $4.99 seem cheaper compared to $5 when the difference is almost negligible.
Prestige Pricing
Prestige pricing is the exact opposite of this methodology. While some people may find lower prices more attractive, others may doubt its value and authenticity due to its lower prices.
Prestige pricing is where the price of a commodity is rounded off to the nearest rounded figure so the price seems ideal. The higher and rounded prices make a product seem more valuable than it actually is.
Customers are more likely to buy a product that will provide them with more value for money. That’s exactly what gets companies like Amazon more sales using this pricing method.
2. Price Anchoring
If you’ve ever used Amazon you might have noticed how you ‘always’ seem to get a better deal. Simple comparative pricing makes consumers feel like they’re getting better offers when in reality it’s just a way to promote sales.
Price anchoring is a popular way of getting more sales. Several e-commerce stores including Amazon make use of a simple strikethrough price which enhances the value of the actual price.
Although price anchoring and price discounts are different, the technique has been effective in gaining sales as shown by e-commerce statistics. In the world of digital stores, a sale is equivalent to a customer’s click. Hence price anchoring makes good use of perception to increase sales.
3. Amazon Prime
In 2022, about 142.5 million of Amazon’s total users are members of its Prime program. Amazon Prime is a paid subscription-based customer loyalty program that Amazon offers. Since its introduction in 2005, the number of prime users has been increasing progressively.
Amazon Prime Users Growth in the U.S.
Having a prime membership makes a user eligible for certain perks from Amazon. For starters, customers with prime get faster deliveries, access to special sales earlier, and Amazon’s media and entertainment services such as Prime Video, Prime Music, and Prime Gaming.
Paying about ₹179 monthly gets you all these benefits and it’s no doubt why people prefer to subscribe to prime. The feeling of getting a higher priority and more gains is what prompts people to stay as prime users. Amazon Prime video generated $3.6 billion in revenue sharing in 2020.
4. Comparative\Decoy Pricing
Comparative pricing is a technique used to boost the sales of one product using a decoy product with alternative pricing. Let’s say you have a product that you’re interested in. If two products of similar nature are being presented, one with better overall value than the other, the choice is rather obvious. Comparative pricing is where a product is intentionally made to look bad to promote the sales of another product.
Decoy Pricing in effect
While the decoy product dips in sales, the targeted product gets more sales and that’s completely intentional. The goal here is to get the customers to choose the targeted product instead of the other.
5. Price Framing
Everyone in marketing knows that a good sales pitch means a positive impact on sales. Price framing is how a product’s price is presented to the customers. The visuals associated with price presentation and context matter because a customer often makes their decision at the last minute and what they see has to appeal to their mindset.
Simply adding additional text such as ‘only for’, ‘best deal’, ‘20% OFF’ makes the customer feel like they’re getting a bargain. E-commerce companies gain much more sales due to their marketing campaigns which use this method as well.
6. One Time Deals
Adding a time limit to deals and offers speeds up the decision-making process for customers and also makes products seem more valuable. Amazon has been offering limited-time deals for a while now and it’s common to see flash sales during festive seasons. Often these one-time deals aren’t much different from what you can get a product for, considering you have the patience to wait a while.
As far as most common products on an e-commerce platform are considered, the prices never really stay high for long. It’s only a matter of time before new products rise and the older prices dip. However, customers are tricked into thinking that the reduced prices are indeed a limited-time offer and hence Amazon make huge sales just by adding a timer with a lower price.
Amazon makes excellent use of modern-day technology and scientifically proven marketing techniques to always develop the perfect pricing to get sales going. It’s all about the customer mindset when it comes to e-commerce and that’s where the use of passively manipulative methods shines the most.
Not all of it is ethical, but the majority of applied techniques are rather intuitive and that is what keeps Amazon’s sales up high during the roughest of times.
FAQ
How does Amazon use psychology?
Decoy pricing, Price anchoring, Prestige pricing, and limited-time deals are some ways Amazon uses psychology to get you to buy more.
Why do Amazon prices keep changing?
Amazon keeps changing its prices according to trends and customer feedback.
How does Amazon use psychology to get you to buy more?
Amazon creates a sense of urgency by displaying the products left till it gets out of stock.
Indians prefer ordering from amazon compared to other marketplaces, Amazon has been dominating the Indian market since its entry in India, and it’s the most profitable website to market your products. Most businessmen prefer selling their products on amazon. Amazonhas seen massive growth since its entry into the Indian market many competitors have to try to come as close as the figures of amazon but in vain. If you want to start selling on amazon we will guideyou right away. Are you ready to grow your business on Amazon, let’s get started:
Here are some documents you’ll require for registering an amazon seller account:
PAN Card – PAN card can be individual if you hold the proprietorship or if you own a Pvt limited company, so the PAN card should be in the name of your company.
GST Number – You need a GST number to fulfill the registration process.
Bank Account – You require a bank account that can be current or a savings account.
Email Id – Email id is also required to fill the registration form which can be your email id or your business email id.
Mobile No.- Lastbut not least you need a mobile no. for registering your account.
First, you need to visit Amazon.in then scroll down there you’ll find an option sell on amazon, click on that option and a new tab will be open after that Amazon will offer you 2 business plan Professional and Individual.
How to Sell Through Amazon India?Amazon Product Tax Code
2. Create an Account
Enter your personal details and create your amazon seller account.
Create an Account
3. Register your Store
Fill in your details and create your amazon seller account then you will be asked to add your Registered Business name or the legally registered store name.
Register your Store
4. Verify your Mobile Number
Verify your mobile number for further.
Verify your Mobile Number
5. Seller Information
After that, you have to add your store name and the address of your store which it is located in after you add the address of your store, Amazon will display a message of amazon Easy ship service in this service amazon will pick orders from your store and directly ship them to the customers. If you don’t want to employ amazon Easy ship you can provide the contract to any third-party shipping services which will ship the package for you.
Easy Ship Fee in AmazonEasy Ship Fee Amazon
6. Tax Details
Fill in your GST details and if you don’t have one register your GST at how to register GST at amazon services and proceed further.
Tax Details
7. Choose the Category of Products
Now you have to choose the categories you want to sell in your store. (Choose the products which are high in demand to get maximum sales), after selecting the categories Amazon will ask you to fill some questions such as where do you get your products from and what is your annual turnover answer these questions and proceed to the dashboard.
7. Amazon Listings and Shipping Rates
Click on start listing and list down all the products you’re going to sell in your store.
Now you have to set the shipping region your going to ship such as rural or urban and set the shipping rates and days for that area, if you don’t want the hassle of shipping choose amazon easy ship, and Amazon will ship it for you.
After selecting the shipping rates confirm the shipping rates and move ahead to enter the bank details.
Shipping Rates
8. Bank Details and Tax Details
Enter your bank details properly because you will receive payments in this bank account.
Enter the tax details such as your PAN and GST number and click save.
Bank Details
9. Tax Code and Digital Signature
The government has imposed a different taxon different for some it’s 8% or 12% search the tax code of your product and which category it falls in and add the tax codes to the product.
Upload a scanned copy of your signature and proceed further.
Tax Code and Digital Signature
10. Dashboard
After completing the entire process of registering your business a dashboard will appear, from the dashboard you can manage all the functions of the amazon seller central dashboard you can monitor the orders which are shipped or not inventory prices, and everything.
Dashboard
So, This was the complete process of registering as a seller on amazon and inaugurating your own business.
Amazon Fees
While selling on Amazon, Amazon charges a small fee for every product you sell. Amazon charges three types of fee on your product:
Amazon Referral Fee
Based on the category of product you choose a small percentage of your selling price is charged by Amazon, you can check the referral fee on different categories of products at selling on the Amazon fee schedule.
Amazon Fixed Closing Fees
Amazon closing fees is the fee charged by amazon based on your selling product and the shipping services you choose. you can check the fee charged by amazon by visiting the amazon calculator.
Amazon Easy Ship
Amazon easy ship is a service offered by Amazon in which Amazon will pick the product from your store and directly ship it to the customer if you want to ship manually, there also an option to ship manually but if you prefer amazon easy ship, Amazon will charge you a fee based on your product.
Amazon Easy Ship
Now you’re all set to sell your product on amazon lets learn how to get your first order when you don’t have any seller ratings
How can you get your first order on Amazon?
Product display is the most important aspect of any shopping site when a consumer is scrolling through amazon your product display should be such that he/she clicks on it immediately
While displaying your product on amazon use Hd images to showcase your product
Add bullet-points that highlight feature of your products
The description of your product should be informative so that the customer gets a complete idea about your product
Highlight the benefits of your product
A low pricing strategy never fails to attract customers
If you are confused about how to promote your product let amazon do it for you
There is an advertising program by amazon in which amazon promotes your product for you. The sponsored products by amazon appear on top and bottom of the page, amazon sponsored products are displayed with a badge called sponsored.
This can help you to advertise your product and increase your seller ratings if you’re a new amazon seller.
Amazon FBA
FBA (fulfillment by amazon) is a service provided by Amazon in which if a seller selects FBA the seller does not have to consider the hassle of storing the product in his store or warehouses, amazon store the product in their warehouses until it is delivered to the customer.
Benefits
Less shipping fee as compared to third party shipments
No burden of maintaining a warehouse full of products
All FBA orders are processed and handled the same way as amazon handles its merchandise
Drawbacks
There can be some handling issues by the amazon where a product can be lost or damaged
There are really precise product guidelines which every FBA compliant must follow
Given that Amazon handles returns with FBA, sellers may experience higher return rates once customers understand how easy it is to return a product on Amazon.
When you provide valid information about your bank account, Amazon will directly transfer your money obtained from the sales into your bank account every 7 days. To initiate a payment from amazon you must have a positive seller account, positive seller account is when the number of sales is greater than the amount of fees incurred by the amazon.
How to manage returns on Amazon?
Every amazon seller has this concern of returning products from the customers, you can’t get zero returns from the customers but you can add in extra effort to reduce the return rate such as pay special attention to defective products, great packaging, and delivery on time.
there are three types of return on amazon
Customer Returns
Undelivered Order Returns
Rejected orders Returns
Customer returns are the products that are returned by the customers.
Undelivered returns are when the amazon cannot find the address of the seller or if the package is rejected by the customer then it is returned to the seller as it is.
Refund Related to Customers
To access the return setting in amazon seller central:
Login to your amazon seller central account.
In the top navigation bar, you’ll find orders and under that, you can click on manage returns.
Click on manage returns there you’ll find an option “edit return settings”. Click on it and you can manage the return settings.
If you wish amazon to authorize your refund request then, In case of amazon will authorize the return request. Once the parcel is picked from the customer end the money will be auto refunded to your bank account.
If you want to authorize each request you can authorize the return request, the parcel will be returned to you, and based on the return item condition you can generate a refund to the buyer.
So, this was your ultimate guide to owning your own store and starting your own e-commerce business using amazon. We wish you luck for your first e-commerce store now go out there and reach out to lakhs of customers.
Yes. If you are listing taxable goods, GST details are required to sell online. You need to provide a GSTnumber to Amazon at the time of registration. However, if you are selling only GST exempted categories, then this may not be required.
How long does Amazon take to pay the seller?
The first payment will take 14 days after which sellers will be paid every 7 days.
What if my product gets damaged or lost?
Amazon has a reimbursement policy (Amazon Safe T Claim) to reimburse the seller from the losses incurred due to the buyer. Easy Ship sellers can file a claim against the order for which the shipments get lost, damaged, original item not returned to claim reimbursement from Amazon.
What is the product tax code?
Product tax codes are the codes of the tax which is levied by the government on a different category of products.
I don’t have a current bank account can I sell on amazon?
You can sell on Amazon if you don’t have a current bank account but experts recommend having a current bank account.
How does easy shipping on Amazon work?
Amazon Easy Ship is a delivery service for Amazon.in sellers. Amazon.in orders are picked up from the seller’s location by an Amazon Logistics delivery associate and delivered to the buyers’ location with minimal effort from sellers. With EasyShip, customers can track their orders and delivery date.
What is product tax code in Amazon?
Product Tax Code Amazon: Product tax codes direct Amazon how to charge sales tax to your customers in the states where you tell them to charge sales tax. Product tax codes don’t cover every item, but they do cover items that are sometimes taxed differently across different states or jurisdictions.
How to sell on amazon without GST?
You can sell online without GST only if you sell goods which are exempted. If you sell goods on which GST is applicable, then you have to get a GST number to be able to sell online. You have to take GSTIN even if turnover is less than Rs. 20 lakh.
Amazon.com Inc is an American based multinational technology company. It was founded in the year 1994. The company is located in Washington. It focuses on e-commerce, cloud computing, artificial intelligence and digital streaming. It is one of the big five companies in the U.S IT industry.
Amazon is one of the largest e-commerce companies in India. Let’s look at the below article to understand the new Amazon’s Mentor Programme and the benefit from it.
On 11 April 2021, Amazon India had announced the launch of its Mentor Connect programme. The aim of the Mentor connect programme is to accelerate the growth of startups in the country. It also focuses on accelerating the growth of the emerging brand owners as well.
The brand owners and the emerging startups will have to enroll under the Amazon Launchpad initiative. The Amazon Mentor Connect programme will not just be limited to the startups and the emerging brands. It will also be extended to the winners of the entrepreneurship challenge which is hosted by Amazon called as Amazon Sambhav Summit.
The second edition of the entrepreneurship challenge Amazon Sambhav is said to be hosted from 15 April 2021 to 18 April 2021.
The aim of the Amazon Mentor Connect programme is to create a system to support and help the startups. It aims at helping startups in unlocking their potential by providing them with proper guidance and mentorship. This will help them in scaling their business, avoiding blind spots, to learn from the experienced industry leaders, etc.
The programme will focus on opening new doors and will help the startups in identifying and unlocking infinite possibilities which will increase the possibilities for a Digital India said Amazon India director Pranav Bhasin who has experience in the MSME sector and Selling Partner Experience.
He also added on saying that India has a large Startup ecosystem which is the key to disruptive innovation. This ecosystem is expected to accelerate India’s progress towards an Atmanirbhar Bharat.
Pranav Bhasin has said that most of the startups are led by first time entrepreneurs who are driven by the passion to drive a change in the market. But most of them have no much experience to deal with the challenges and hardships they have to face along the way.
Amazon India Director, Pranav Bhasin
Prayag Mohanty who is the Senior Vice President at Fireside Ventures said that the company has been looking to understand the grassroots level challenges, identifying trends and trying different ways to solve the problems that are faced by the emerging brands and startups.
He also added on saying that other than that Venture Capital’s like them are always looking for opportunities in order to meet the new and upcoming brands.
The programme will offer startups and emerging brands to gain access to the guidance from Venture Capitalists, industry experts and Amazon leaders. The startups and emerging brands will get a chance to know the expert knowledge by sharing sessions, networking events and 1:1 mentorship sessions.
Amazon has already confirmed that mentors from educational institutions and VC firms like Fireside Ventures, Elevation Capital, Tomorrow Capital and DSG Consumer Partners for contributing to the Indian startup ecosystem.
The startups and emerging brands can get a chance to access guidance from all these mentors through various other ways. This would include one-to-one mentorship with chosen mentors for over a period of three months.
The members of the programme will also get networking opportunities with a wider range of industry experts and can even have knowledge sharing sessions between these experts and other Launchpad brands.
The platform also offers the startup operators to showcase their startups, engage and learn with the Industry’s leading expert in their respective subject matters and also helps them in tackling strategic and functional challenges.
The Amazon launchpad has currently showcased over 2 lakh products which are offered by more than 800 brands that are emerging from across 30 different product categories. The popular sectors that are showcased by these brands include health and personal care, grocery and home products, beauty and grooming, etc.
Successful mentoring go through four phases, preparation, negotiating, enabling growth, and closure.
How long should a mentorship program last?
The minimum amount of time a mentoring relationship or program must last is 6 months but there is no maximum.
What are some examples of mentoring goals?
Leadership skills, Confidence skills, Public speaking/presentation skills, and Life/work balance are some examples of mentoring goals.
Conclusion
Amazon’s mentor programme will be a great initiative for the company to grow and develop the startup ecosystem in the country. It will be one of the best platforms for the startups and emerging brands to get the exposure they require to develop their startup.
Rapid FDI stride is something India is boasting of since economic liberation in 1991, And indeed it brought in huge investments and millions of jobs alongside. No doubt market reforms placed the economy on the fast track of development. But on the flip side, soon after FDI in multi-brand retail got introduced in 2012 local businesses and trades took a hit quite as expected. Especially since gigantic foreign players like Amazon entered the market, Plenty of jobs were lost while micro & small retailers suffered significant losses.
First Significant Change in FDI Policy That Hit Amazon/Flipkart
The ease & comfort of e-shopping has been intelligently multiplied in value by these global giants by offering heavy discounts. Therefore, to level out the playing field, Govt of India brought in a major policy shift Via FDI into e-commerce in Dec 2018. This change was persuaded by Indian brick-and-mortar retailers who were long unhappy with the supposed unfair trade practices of these multinational corporations.
They contested that e-commerce retailers like Amazon & Walmart controlled Flipkart were creating complex business structures to smartly bypass foreign investment rules. They do it by finding a way around FDI rules to avoid complying with orders that are detrimental to these corporation’s interests & profits.
US companies deny these charges, But govt of India had to look over the interests of Indian businesses first & so it did. Now, these giants were disallowed to sell products from sellers in whom they had an equity stake.
However, this didn’t seem to deter these foreign participants from working around policies to keep competition from Indian retailers at bay. So the Govt of India again is revisiting the FDI rules off late to tweak it further and Prohibit even those sellers from selling on these platforms, in whom these e-commerce companies have indirect stake through their parent company.
Prohibit sellers who purchase from the e-retailer or its group firm & intern sell on the e-commerce site (presently the seller is allowed to transact 25% of its inventory under this arrangement)
Govt had earlier in 2020 tightened the noose on FDI from neighboring countries as well, who share land borders with us like China, who now will have to seek govt approval before investing. The objective behind was to protect opportunistic take-overs & acquisitions of Indian companies in distress by foreign giants, due to COVID-19 induced global recession.
Henceforth, any new investments in any sector from these (restricted) countries namely China, Pakistan, Bangladesh, Nepal, Myanmar, Bhutan and Afghanistan will have to take the govt route, and not the automatic route which was open to it earlier.
E-commerce/E-retail Growth in India
Let us look at some fascinating facts & figures before we discuss this subject further:
Why E-commerce Regulation is Vital for Indian Economy
According to an American market research firm, Amazon & Flipkart together occupy about 63% of the total e-commerce space in India. Now, if domestic retailers, online & offline i.e. physical brick-and-mortar stores have to have a fair share of the market or a fair competition at least govt has to devise a strategy to promote Indian e-commerce & Industry without discouraging FDI. It’s a tough proposition.
FDI is looked over by Indian departments of commerce & industry. They formulate laws and regulate FDI inflow by framing new policies and/or modifying scrapping old policies & rules. While this is done to further the economy on a macro level, its ripple effect on the micro economy can’t be overlooked either.
So it has to strike a fine balance between retail reforms, an open market which on one hand benefits end consumers and provides millions of jobs. On the other hand predatory pricing, deep discounting by online retailers makes small retailers(mainly owner-managed & run stores) fight for survival tougher.
A large growing economy like India, where low production costs and high-quality labor service lures investors from the world over, developed nations like the US, European and China, is also most prone to manipulations by foreign players if given a free run. As feared in this tweet by CAIT, Amazon India has been disrespecting laws reveals a recent Reuters investigation.
— Confederation of All India Traders (CAIT) (@CAITIndia) February 17, 2021
In January 2020, India’s antitrust watchdog, the Competition Commission of India, announced it was investigating Amazon and Walmart Inc’s Flipkart following a complaint by an Indian trader group. The commission cited four alleged anti-competitive practices: exclusive launch of mobile phones by the e-commerce firms, promoting preferred sellers on their websites, deep discounting, and prioritizing some seller listings over others.
What lies Ahead for Amazon & Flipkart
While the colossal change in consumer behavior is unlikely to fade in near future, Amazon & Flipkart also maintain that they have been complying with Indian laws duly & are denying all charges. Govt is in talks with stakeholders for over a month. Therefore, for now, it is difficult to say what impact the policy changes, if any, will bring in, though e-retail unquestionably seems to have a bright future in the Indian market of a billion-plus.
FAQ
How much FDI is allowed in retail?
51% FDI in multi-brand retail through automatic route i.e. without having to seek govt approval.
Do online marketplaces like Amazon have their own products?
Amazon and other multi-brand retail marketplaces are only allowed to connect sellers & buyers on their website in India. They are not allowed to purchase, hold, market and sell stocks as their own.
Who started e-commerce in India?
K Vaitheeswaran was the first person who opened the first online marketplace for Indian consumers called Fabmart.com in India in 1999, now rebranded as ‘More’.
If you are willing to start an online business by selling product online, you need not bother with a splendid product or open physical store. The most ideal approach to begin is to start selling products online from other companies.
You can get the accessibility of the products through drop transporters. Then you can use a channel which already exists or by creating your own site start selling the product online.
Selling products online through eCommerce provides a great opportunity for entrepreneurs to begin. There is no cue of getting down the line on the graph in the strategy of eCommerce. Selling product online can also give way to progress without purchasing a property and opening a physical store, which can be a messy task.
Drop-shipping in eCommerce business helps you to take orders on your own site. The liability for transporting the products to the customer is on your merchant or wholesaler. You don’t need to convey any stock anyway. You work as a middle-man between the merchant and the purchaser.
Drop-shipping works in this way:
A customer puts an order request from your website. You receive the price and place an order to your wholesaler at your suitable cost
The wholesaler delivers the product to right address.
The product will have your organization name and logo. Thus, it shows up as though the item is originating from your end.
Utilizing 3PL
A 3PL is a third party logistic company that deals with the capacity of your products for the fulfilment of your orders. At times, they can assist customer care and item returns. You transport the products as a whole to the 3PL supplier.
It works in this way:
A customer puts in an order request on your website
Your site sends the request to the 3PL
The 3PL ships the request to the customer who placed the order.
You pay the 3PL a monthly expense and incentives for each request cost for satisfaction.
Amazon FBA
Amazon FBA is one of the most famous choices for selling product online. Amazon FBA means “Satisfaction By Amazon”. Choosing the Amazon FBA is very satisfying as Amazon takes care of all the things. Also, you additionally get access to Amazon’s large number of audience.
Popular products to sell online in Amazon
Here’s the way by which it works:
You transport your products to Amazon market place
You list your product on the Amazon commercial center
A client submits a request on Amazon
Amazon handles every step securely delivers the order to the customer.
After you have selected your niche, here are the things that you will need to put your focus on.
A domain name for your eCommerce store is fundamental so pick as needs be. Enrolling a domain name will permit the audience to discover your website. It will permit you to keep up your reputation.
Your domain name also helps you to change your eCommerce store arrangements as your business develops. You cannot use your eCommerce supplier’s domain name. You need to get another website for your customers and suppliers to discover you on the digital market. Besides, having your own domain name gives your selling product online a boost for you to work in the market.
Recognize Your Target Audience
You should start exploring and recognizing your target audience for selling products online. Your competitor’s strategy can help you choose product pricing, website design and marking. Also, it helps to build your underlying advertising procedure. This can give bits of knowledge into displaying the advantages of your product to expected customers.
Amazon selling process
Portray Your Products
Your customer is lacking a physical store to try on the products. So you have to reproduce that experience online. this can be possible only if you are portraying everything you’re selling. Give as much data as possible, like weight and measurements.
Besides composing descriptions for the products, the pictures also need to look great. You can also add ‘try-on’ features for the customer can put their own photograph and try virtually.
SSL Certificate
You need to know when you go to a site and in your program bar, you’ll never see a little latch image. It is because the web-page is secure. Also, it’s a confirmation to online clients that their information is secure. Buying an SSL (Secure Socket Layer) declaration encodes the pieces of your site.
How to sell online in India- Get SSL certificate
It also gathers individual data, like Visa and client structure subtleties. Having an SSL declaration guards your customer against frauds and hacks. Besides, it gives your business trust for your consumers.
These are only a couple of the significant things you’ll have to achieve to set up your site. The more time you take to get ready before you start, the quicker you’ll succeed once you go on the web.
E-Commerce Platform
Picking the suitable eCommerce platform is as significant as the selling product online. Ensure you pick a completely equipped, all-in-one solution. It will permit you to claim both the eCommerce site and the shopping cart software. So, you don’t have to bother with coding abilities or need to pay exchange charges on sales. You can approach helping-team to assist you in setting up your store.
Advertising And Marketing
After your selling product online gets operational, marketing becomes your following step. Another preferred tool is the inherent SEO apparatus. It permits you to optimize your website for web indexes and consumers. Associate with your customers with the help of web-based media. Also, publicize through PPC promotions and shopping motors. To boost income and improve transformations, look at the online business changes control.
If you get your conveyance system right, the conversion rate on your site will increase. This will enable repeat buys. Your conveyance system covers everything. Starting from the value you charge and the services you offer, to the delivery and the packaging. It’s imperative to invest in this and get things right for your customers.
Continue Updating Your Website
Your website will be stagnant unless you keep on optimizing with updates. So you must arrange of enhancement and discover the region that is not working well, and improve it. You can also add new features and bug-free services with every update.
Statistics Of Selling Product Online
Global research says that retail sales from eCommerce sites will add up to trillion out of 2020. The income shows a yearly development rate (CAGR 2020-2024) of 7.8% with a market volume of US $3.1 trillion out of 2024.
Investing in selling product online will hike and grow, considering this data. So you know, there’s no preferable time over now to begin selling products online.
Statistical representation of retail sales over the decade
The competition is selling a product online is rising every day. However, with the right strategy and proper formulation of your business, you can grow. Do not bother your mind with the competitors around. Grab everything that will favor your business and start taking off with ease.
