Watch out BigBasket and Grofers! Amazon begins its grocery delivery services in India with Amazon Now
A two-hour delivery service of daily essentials called Amazon Now has been started by
The consumable are sold on the company’s website Amazon.in and
“Daily consumables are shaping up to be one of our largest categories... Fashion, consumables and consumer electronics are neck-and-neck in terms of volumes," country manager Amit Agarwal told ET.
Though, the average sale price od a product is low, it has been anticipated by the analysts, that the category will be useful as it will help Amazon India boost repeat purchase and loyalty among regular online shoppers, whom the company is targeting through its Prime subscription service launched in July.
"Amazon will look to acquire the top 50-60 million of existing online customers who are spending very frequently online through services like Prime, which will be the first leg of their strategy," Satish Meena, an analyst at
In volumetric terms, the company’s fast moving consumer goods business has grown by about 200% year-on-year, by the end of August. "Amazon.in has witnessed strong growth in the category from tier-II and tier-III cities, with nearly 50% of the orders coming from outside the top eight cities," a spokeswoman for Amazon India told ET.
Pantry' product were introduced in Hyderabad this week by Amazon. The customers can select grocery and household essentials to be packed into boxes of up to 15 kg for home delivery the next day, with a shipping charge of Rs 20. Though, it is currently free for Amazon Prime subscribers.
"We see a very high degree of repeat usage and very big basket sizes that customers are shopping for,"
Popular on BI
- Life and times of Rakesh Jhunjhunwala — the man behind the trader
- A 29-year-old woman found a mark on her head and was diagnosed with a fungal infection. It turned out to be invasive skin cancer.
- JPMorgan CEO Jamie Dimon told wealthy clients there's a chance the US is heading into 'something worse' than a recession, report says
- Vivo V25 Pro Review - A camera champ with minor stumbling blocks
- Akasa Air has enough capital to induct 72 aircraft thanks to Rakesh Jhunjhunwala’s visionary role, says CEO
- Workplace recognition, and not salary, is top criteria for job seekers in India: report
- Sports goods, furniture and shoes lead India’s retail growth this festive season: RAI
- ACCA and IMA: economy survey reveals the biggest ever drop in economic confidence