During the recent festive period, Amazon India witnessed a substantial escalation in its sales, with a quarter of all transactions transpiring through Equated Monthly Installments (EMI), as revealed by a high-ranking executive.
What Happened?: Amazon India bolstered credit-linked purchases during the festive period, leading to a sales surge, as reported by Moneycontrol. The e-commerce giant offered customers discounts exceeding Rs 600 crore in collaboration with banks, during the festive season.
According to Kishore Thota, Director of Shopping Experiences at Amazon, “The number of avenues to get credit has increased — be it from banks, NBFCs, or pay-later players. This has allowed consumers to be a lot more open to bigger purchases."
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E-commerce sales have seen a significant resurgence during the festive season, with consumers demonstrating a preference for more premium purchases, including categories like mobile phones and large appliances. Not only metro cities but also Tier 2 areas and beyond observed this trend.
Thota also highlighted that the shift towards premium purchases goes beyond electronics, extending into categories like grocery.
It was disclosed by the company that customers from 99.7% of India’s PIN codes participated in shopping during the month-long festivities, with 80% of the customers hailing from tier 2 and 3 towns.
Why It Matters: The surge in sales indicates a positive trend for e-commerce platforms in India. It demonstrates the increasing consumer confidence in making larger purchases through EMIs, suggesting the potential for future growth in this sector. Furthermore, the widespread participation of customers, even from the country's most remote areas, reflects the widening reach of e-commerce, a trend that is likely to continue in the future. This could potentially open up new markets for Amazon and other e-commerce companies, driving further growth.
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