Opportunity or deep pit, Amazon tells you the answer to this full 2023 guide for India!
November 26, 2022 | The full text is 4,205 words and takes about 9 minutes
Contents
01/India is like climbing Mount Everest. If you have no equipment or experience, don't try it easily!
02/If you meet these conditions, you can conquer India just like the TAs!
03/Ready?Now in India, these benefits are delivered directly!
As one of Amazon's emerging sites, the India site has huge potential business opportunities. As a result, it has attracted many new and old sellers to flock here. But at the same time, everyone has also run into a lot of trouble, so let's follow these “complaint scenes” with Xiaobian!
Lily
I heard that the potential to enter Amazon India is huge, and a single product can sell 80,000 pieces!
I don't know if Amazon India's return rate is really high?
David
Mark
Moreover, the average e-commerce customer unit price in India is low, beyond imagination~
Will the application process be complicated and cumbersome now?The Indian website is so difficult. I've been doing it for a long time to register to open a store, and the process is so complicated...
Rose
Is the Indian station really smelly or stinky?Is it a potential stock or a big hole?Today, Xiaobian will take you to take a look at the highly controversial India Station. Is it really that difficult?Where's the difficulty?
one
“India Station is like climbing Mount Everest
Don't try it lightly without equipment and experience!”
Many successful seller friends in India joked, “Being in India is climbing Mount Everest. It is suitable for high-end players. ” Indeed, climbing Mount Everest without sufficient preliminary preparation and research, as well as financial and experiential support, is just rhetoric; don't try it easily.
So, in terms of market capacity and potential, what exactly is India like?Let's use a series of data to find out.
◆ Large young population
They all say that traffic = money. Young traffic is what many sellers want, because they love to pursue new things and like online shopping. According to data, India's young population aged 15-34 is 850 million 1. As the main consumers of online shopping, young people make the e-commerce market in India huge!
◆ More and more people love online shopping
You might say that population doesn't mean traffic. But the growing number of e-commerce users is proof of India's market potential!According to third-party data, the number of e-commerce users in India is growing at a rate of 61% 2 and is expected to reach 890 million by 2024 3!
◆ More Indian consumers love to buy online on Amazon
As one of the most popular e-commerce brands in India, Amazon has been at the top of e-commerce website traffic in India all year round. As can be seen from the side, online shopping groups in India prefer to buy and buy through Amazon. At the same time, in order to better meet the needs of Indian consumers, Amazon has invested 7 billion US dollars in India and established 60 operating centers. More than 90% of India's regions have achieved next-day Prime membership delivery.
◆ Cost-effective and high-end categories all have unlimited business opportunities
About 70% or more of Amazon's India site is a middle class high-income user base. High-value categories such as wireless headsets, robot vacuum cleaners, e-sports (gaming chairs, e-sports keyboards), and smart wearables can also sell well and grow rapidly in India.
Therefore, whether from the perspective of the market itself or Amazon, the India website is undoubtedly an excellent choice for expanding business. However, limited by India's policies and economic development, India has not always shown the trend it should have because of its traffic dividends. Whether it is e-commerce customer unit price or return rate, many sellers are discouraged.
However, this is not a reason for some sellers to abandon this market. Many leading brand sellers, factory sellers are still making a lot of money in India. So, who is the right place to do it in India?What to do?This is the crux of the problem. It solved this problem, so is the Indian station really a hole?It was a natural solution.
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“Fulfilling these conditions,
You can conquer India just like the TAs!”
Xiaobian has summarized the 3 “money” rules for sellers in India. If you understand these, you will know who is really suitable for playing in India!
● “Money” Rule 1
The India website is more suitable for experienced cross-border e-commerce sellers!
So-called “experienced” does not mean that as long as you do cross-border e-commerce, no matter the size or length of time, you can visit India right away. Our definition of “experienced” is as follows:
▶ Sufficient product experience and strong ability:
The product chain is rich, and there are diverse product lines that can meet the different needs of consumers; at the same time, based on a stable product supply chain and qualifications (such as brands and compliance qualifications), you can respond more quickly to market needs; furthermore, if you have strong R&D and design experience, it is a plus for entering India!
▶ Has relevant market experience in India's traditional foreign trade, local e-commerce, etc.:
Learn more about the terminal needs of Indian consumers, which can increase the chances of success in India; at the same time, considering the overall complex situation of the Indian market, past Indian experience can better help you solve problems such as customs, taxation, etc.
Case sharing
Seller's main products: smart digital electronic products
Past experience:
We have more than 10 years of successful cross-border experience; at the same time, we are actively developing India's offline market. Before entering the India website, we already had rich experience in offline retail in the Indian market and e-commerce platforms in India. In 2020, the seller entered Amazon India and knocked on the Indian market through a single product category. This seller has been on the Indian website for nearly three years. It is one of the few sellers that have been on the Indian website within 12 months and the revenue amount has exceeded one million US dollars.
▶ Key elements for success in India:
● Rich product experience:
As a leading seller in the smart digital category, this seller has accumulated a large amount of reputation and influence in the Indian market through offline retail and local e-commerce layout. What do Indian consumers like, which style they like, what price they accept, what kind of needs, etc., are all supported by a series of data, which can more efficiently select the product line suitable for India. At the same time, as a leading seller of digital electronic products, it also has multiple patents and technical barriers, which are more secure in terms of “quality”.
Practical experience comes down to the bottom, doing more with less:
The problem with the India site is “lack of awareness”; the seller's rich experience in offline retail and local e-commerce operations in the past quickly helped them open up the situation on Amazon India. In particular, it has the ability to overcome complex factors such as supply chains, sales channels, and operations one by one; at the same time, relying on the seller's offline sales team and retail agent in India, the seller also has more localized trading experience.
● “Money” Rule 2
Senior vertical brand sellers already have a certain foundation of brand awareness and hope to build a “global brand”
For brand sellers, especially well-known brands in vertical fields, if they want to “brand overseas,” India must not be missed. So, what are the recommended qualifications for vertical brand sellers?
▶ Have a strong business foundation:
The seller has the ability to establish long-term business, has rich ability to deal with problems (such as counterfeiting issues), has owned its own brand and has been successfully operating for several years.
▶ EXCLUSIVE TEAM:
Looking through the many successful sellers in India, we will find that a stable team is one of the core elements of success. From early research and mid-term store opening to post-operation and product development, there is no shortage of dedicated team support. Given the special and complex situation in India, if you want to do business, you need the support of a stable team.
Case sharing
Seller's main products: Home & Kitchen Products
Past experience:
It started as a foreign trade factory in the 90s and was a supply chain foundry for many famous brands. It began to develop e-commerce around 2015, and established an independent brand. Seek opportunities to go out to sea began in 2019. Launched in India in early 2021, it reached deep cultivation in the domestic market and e-commerce platforms within a year of launch, and has become one of the leading domestic kitchen products brands. It started getting involved in cross-border e-commerce around 2020, and was launched on Amazon India in '21; it reached one million sales in one year, and sales are expected to grow 400% in 2022!
▶ Key elements for success in India:
● Deep business roots:
The traditional industry and trade integration seller and the accumulation of domestic brands and influence have made this seller's business foundation very stable. Whether it's the supply chain or brand influence, it is at the top at home and abroad. Therefore, for the sellers themselves, they are strong, and it is only a matter of time before they expand their business. The rich experience of operating multiple platforms at home and abroad has also helped the seller to gain reputation and influence overseas.
From operation to R&D, explore user needs to the extreme:
For the Indian website, the seller did not simply test products, and then sold the products directly from Europe and America to India. In order to understand the real needs of India, their Indian team flew to India several times to inspect consumer needs; at the same time, they continuously collect feedback from online consumers on a weekly basis, and work with the R&D team to develop new products suitable for the Indian station in response to reviews, and innovate in multiple dimensions such as price, style, and color.
Overcome the brand's “soil and water disapproval” when going overseas and achieve true “localization”:
The seller's localization strategy is reflected in the trade chain. Aiming at the transportation link in the trade chain, in order to better improve the user experience of Indian consumers and minimize damage, the seller made every effort to pack each product separately in India to facilitate delivery, thus solving India's problems with delivery (such as damage to goods due to poor packaging, which causes high return rates).
● “Money” Rule 3
The supply chain is good at both breadth and depth, and you have done your homework in selecting products. You are already half successful in India!
In addition to the right group of people, the next step — product selection. To find the right products, sellers need to find product selection ideas that meet their strengths, industry trends, and consumer needs. Thus, select products with a high repurchase rate, seize the potential for repurchase, and bring higher benefits to sellers. This is especially true for India.
Case sharing
Seller's main products: mobile phone accessories
Past experience:
One of the first cross-border sellers to enter India. The focus of the business was shifting from tablet accessories in the past to mobile phone spare parts. Revenue of more than one million US dollars was achieved in 2021, and the volume nearly quadrupled; revenue is expected to continue to double in 2022.
▶ Key elements for success in India:
● Seize the advantages of your own supply chain:
As a seller who has been deeply involved in the field of electronic product accessories, we have accumulated a large amount of data and word of mouth from multiple sites at home and abroad. At the same time, we can quickly respond to new mobile phones or electronic devices, develop and design corresponding products to seize opportunities. With this, it is possible to better improve the ranking and weight of the website, further influence the brand, and build influence.
Fast response and flexible adjustment:
The seller's own strengths are mainly focused on tablet accessories, but in order to better meet the needs of the Indian market; the seller quickly made adjustments. Through a series of data research, we found the real hot demand of Indian consumers — mobile phone accessories (mobile phones are more popular among Indian consumers than tablets), further expanding the Indian market. From the level of R&D, design, production, and transportation, we cooperated fully, quickly adjusted the strategy over a period of one year, and achieved revenue exceeding one million US dollars.
By passing the above three “money” rules, have you already obtained the secret to success in India?It's true that India isn't a “sweet” site for all sellers; but it's definitely not a “hole.” Therefore, finding the right development path and goals for yourself is the most important thing, rather than simply following the trend to expand your business.
Well, for those sellers who are ready to “climb” the Indian website, if you want to start a business in India in 2023, don't worry, there are also the following benefits, we are ready for you!
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“Ready?Now stop in India and get these benefits delivered directly! “
◆ Free monthly rent!
For sellers: Sellers who are registering and selling on the Indian site from now on
◆ India Station Wave Breaker Package, Dual Support, Nuggets India!
● Advertising subsidies:
Sellers can receive an advertising credit of $1K (70,000 INR) when they go live on FBA. The reward amount will be credited to the seller's advertising account within 30 days of launch.
● Sales subsidies:
New brand sellers can receive a sales subsidy of about 10% * of the ASP price when the FBA goes live. The subsidy period is half a year from the date of FBA launch.
(*The amount of the subsidy will be subsidized according to the sales situation, please consult the account manager for details)
● India's “Van Star 2.0 Plan” has restarted and returned!
From now on, when FBA and Seller Flex sellers in India launch a new ASIN, they can get a sales subsidy of about 5% of the product price!The bonus amount will be credited directly to the account within 30 days of the new ASIN being placed in the warehouse!