Amazon’s business model in India and opportunities for premium pricing

Abstract

The Indian digital market is one of the fastest growing in the world with the growth rate being 33% in 2013.Three of the major players in the Indian e-commerce industry are Flipkart, Snapdeal and the most recent entrant Amazon. The reason for their massive success is their efficient supply chain, back end process, huge variety to choose from, massive discounts etc. Huge economies of learning and rapid adaption to the trends and likes of the markets coupled with supplier needs has made every player unique in itself Each player being better than the other resulted in cut-throat competition and large discounts being offered by each to increase their customer base and sales. This led to players like Flipkart, which though are making high revenues still operate in losses due to high cost. This project will study the business models of Flipkart and Snapdeal against Amazon from the time of their launch to the most recent changes in their model. This project will also give recommendations as to how Amazon can go against the industry trend of giving only discounts on all its products and instead can charge a premium on certain project categories. An extensive list of what products can be offered in these categories, the rationale behind choosing these particular categories and a brief overview of how it can go about implementing the availability of these categories