Daniela Flores de la Hoz

Facts

 More than 65% of Indian population is under age 35.

 They rise levels of disposable income.
 80% of the Indian population own a cell phone.
 67% of the Indian population lives in rural areas characterized by an
underdeveloped infrastructure.
 About 35% of India’s population is connected to the internet.
 They only use cash, not credit cards or checking accounts.
 India enacted a rigid FDI policy restricting foreign multibrand retailers from
selling directly to consumers online. That meant any venture would basically
be a third-party seller for Indian-made.
 A recent Google/A.T. Kearney study predicts online retailing in India will
expand to 175 million shoppers by 2020. E-commerce is widely expected to
exceed $100 billion by that same year.
 India is liberally peppered with small shops.

Strategy
 Amazon developed a program to recruit an army of suppliers and convince
them it was a trustworthy partner that could help them increase the market for
their products.
 Amazon uses a centralized shipping platform, which it calls Fulfillment by
Amazon (FBA), to store and distribute the products it sells. Sellers send their
goods to Amazon’s fulfillment centers and pay a fee for the corporation to
store, pick, pack, and ship their wares.
 Amazon has contracts with a number of major delivery services in the country.
 Amazon has enlisted mom-and-pop store owners as partners in its delivery
platform.

Creative ideas

 Amazon created Amazon Tatkal, a self-described “studio on wheels” that

provides a suite of launch services, such as registration, imaging, cataloging,
and sales training.
 Amazon wheeled out a program called Amazon Chai Cart: mobile tea carts
that navigated city streets, serving refreshments to small-business owners
while teaching them the virtues of e-commerce.
 They introduce Easy Ship and Seller Flex. With the former, Amazon couriers
pick up packaged goods from a seller’s place of business and deliver them to
consumers.
 It utilizes bicycle and motorbike couriers for last-mile deliveries in both urban
and rural communities.