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The Climbing Craze of "Online Shopping" and The Story of Sellers Becoming "Lakhpatis"

Shivangi Pandey | 16 November, 2021

Amazon India has always focused on its annual festive sales that bring millions of new sellers and customers on its platform. Similarly, Amazon Great Indian Festival Sale 2021 brought thousands of new enthusiastic sellers and shoppers on its e-commerce platform despite facing a slowdown for the past two years.

E-commerce sellers on marketplaces such as Amazon, Shopify, and others sold goods worth Rs 32,000 crore during festive sales this year, up 23 per cent from the previous year sale, with over 8.5 lakh Amazon sellers. Moreover, as per the latest report by The Confederation of All India Traders, shoppers across the country bought products worth Rs 1.25 trillion this Diwali, helping retailers log decade-high sales — a sign of resilient demand across the marketplace.

According to an Amazon survey conducted by Nielsen between August 30 and September 9, 2021, 78 per cent of 1,965 sellers surveyed considered reaching out to new customers, while 71 per cent anticipated an increase in sales. The survey noted that 62 per cent of sellers expected an uptick in the visibility of products while 71 per cent mentioned business recovery post lockdown.

Who are these sellers and shoppers?

There is a rise in technological adoption across the globe and, the Indian subcontinent plays a vital part with its massive community spread across the landmass. In India, the technology is still reaching the masses in Tier 2, 3 cities and, its rapid adaption is benefitting global industries, especially e-commerce companies and marketplaces.

This festive season sale, e-commerce platforms like Amazon, Shopify, Flipkart, and more have reported a jump in demand from Tier 2, 3 and beyond cities compared to the last year. Amazon noted that the number of sellers receiving an order from Tier 2 and 3 cities jumped 21 per cent over the past year. Two out of 3 new Amazon Prime sign-ups have also come from Tier 2 and 3 cities!

Enhanced accessibility

In preparation for this festive season, e-commerce players improved the accessibility and receptiveness of their platforms. For example, weeks before the 2021 festive season, Amazon announced plans to add Hindi support to its voice shopping experience and Marathi and Bengali to its customer shopping experience (in addition to the existing six Indian languages).

Increasing acceptance

E-commerce has gained and is continuously increasing acceptance among the masses. Thanks to the user-friendly technical and financial constructs. And, as mentioned earlier, Amazon has been expecting major demand from Tier 2 and beyond. Across the e-commerce industry, the number of orders from smaller towns has seen a significant shift.

Growth in sales = Lakhpati Sellers!

In October 2021, as per a report by Financial Express, Amazon India said nearly 30,000 sellers became ‘lakhpatis’ during the month-long Great Indian Festival sale that began on October 3.

Moreover, through the Local Shops on Amazon programme, wherein a physical store, retail store, or a Kirana store owner can sell to local customers through Amazon, 330 such sellers turned lakhpatis and, 12 of them became ‘crorepatis’