3 Big Lessons Indian E-Commerce Can Learn From Amazon


The perseverance and the tactics used by Amazon has taken the company to the place where it is now, “world’s biggest online retailer.” Indian e-commerce companies can learn a few things from the one who started it all, Amazon. Here’s a take at three of them as compiled by Times Of India.

#1 At What Cost?

Indian e-retailers are spending a lot on establishing their brand name, "E-commerce is seeing another surge in activity led by e-tailers with ad spends increasing almost 50 percent year on year," says CVL Srinivas, CEO, GroupM South Asia.

If the current crop of Indian e-commerce brands have one lesson to learn from the likes of Amazon who not only survived but thrived, it is that current levels of spends cannot be sustained. Seema Gupta, assistant professor -- marketing, IIM Bangalore, points out that Amazon and eBay spend 3.5 percent and 21 percent of their revenues, respectively, whereas the marketing expenses of Indian counterparts such as Flipkart is 20 percent.  

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