Prime Constitutes 30% Of All Amazon India Orders, 75% Of New Users Coming From Tier 2,3 Cities; Amazon Digital Payments To Be Revamped
Some interesting insights into Amazon’s India plan have been revealed, during an interview of Amazon India head Amit Agarwal.
Prominent among them is the news that Amazon will revamp their digital payments platform, and showcase that in a new format.
Besides, the extent of Amazon’s paid subscription program: Prime, has also been revealed. And going by the looks of it, it is clear that Indians are not only loving Prime, but also using it heavily.
Amazon’s Digital Platform To Be Revamped
In April this year, Amazon India received a license for their eWallet, which positioned them directly against Paytm, Freecharge, PhonePe and other established mobile wallets.
Last year, Amazon had launched Amazon Pay Balance, which was more an in-house wallet, meant mainly for Amazon customers to pay for their purchases.
Now, it seems, that Amazon is all set to combine the best features of both of these wallets and introduce something which will surprise all e-commerce users.
As per Amit, simplifying the buying process on their platform, and introduce the cashless mode of payments is their biggest priority.
He said,”… In that sense, this licence (eWallet) allows us to provide a more cashless experience and a more convenient experience to our customers…this will allow us to move customers away from a cash-based or payment on the delivery-based segment to a more prepaid digital segment. That’s our primary priority. Of course, we’ll try different experiments and see what happens,”
The indications are clear: A new digital payment platform, which can be pitched in as a whole purpose wallet as well.
Fingers are crossed!
Amazon India Witness Heavy Usage from Prime Users
As per Amit, 30% of all orders made on Amazon India belong to Prime customers, which means that their subscription model is a big hit with Indians.
In fact, between January and May, the number of Prime users and their shopping have doubled for Amazon India.
He said, “One out of three units that are shipped by us are ordered by Prime customers—so, we’ve reached a point where we see a healthy loyalty that is allowing people to buy more and more.”
Giving some insights into their users’ demographics, he said that 50% of all Prime orders are coming from customers based in Tier 2,3 cities.
Besides, 75% of all new customers are from Tier 2 and 3 cities, and 65% of all active users are new customers; which means that user acquisition campaigns by Amazon are a big hit, and they are making rapid inroads into Tier 2 and 3 cities, which were dominated by Snapdeal and Flipkart till now.
He said that their portal is now offering 100 million products, and 100,000 products are added daily to their database.
Indicating their future plans, Amit said, “If I look at the last four years, almost half of our investments have been in infrastructure, which is a large amount. Infrastructure will continue to be one of our key investment areas,”