Used goods take off on Amazon in India
08 Aug 2017
Just a month ahead of the Indian festive season, Amazon.in rolled out Local Finds , its c-to-c service for used goods, to three more cities, namely Mumbai, Hyderabad and Chennai.
The service debuted in Bangalore in January this year with 600 sellers. At the time, we were first to report on the story (here). We were also the first to report on the U.S. company’s plans to roll the offering out to other Indian cities.
Amazon is rolling out Local Finds in direct competition with Kinnevik-backed Quikr and Naspers-backed OLX, two horizontals which are already very well established in the market. Besides, Local Finds also brought Amazon.in in competition with Flipkart (shareholders Naspers, Tiger Global and Accel Partners, among others) and Snapdeal (part-owned by Softbank, Alibaba, EBay, Kalaari Capital and Nexus Venture Partners), the two major e-commerce sites in India, which also deal in refurbished, used smartphones, a lucrative re-commerce category in India.
In a media release, Mahendra Nerurkar, director of new initiatives at Amazon India, said, “We are humbled to see more than 30,000 customers sell their products on Local Finds in such a short period of time.”
“Through our pilot, we realized that in every city we have customers who have a few products to sell … Existing solutions available to such sellers and buyers had gaps … With Local Finds, we aim to seamlessly connect sellers and buyers, help them list quickly, and discover each other’s products and transact tension-free with delivery, payments and customer service facilitated by Amazon.”
Local Finds covers most categories, including books, video games, music, movies, mobiles, tablets, laptops, accessories, fashion, home decor and more. Delivery and payments are facilitated by Amazon.
Amazon now has close to 140,000 sellers in India. Warehouses, fulfillment centers, service-provider network, in-person support, and other services such as seller cafes and instant registration round the marketplace off.
At present, Amazon has 41 fulfillment centers in India, with three new centers to be added in Hyderabad, outer areas of Gurgaon and Ahmedabad, the wire agency Press Trust of India reported last month.
As an introductory offer, customers can avail free delivery along with cash back (up to INR 100) for jewelry, apparel, and home decor purchases worth INR 500 or more on Local Finds. Individuals and home entrepreneurs selling on the platform for the first time can earn up to INR 500 extra for selling more than five products.
Amazon has made major investments in India to date — an estimated $2 billion U.S. during the past couple of years, and $5 billion U.S. overall. In August, it launched a used-book section on Amazon.in that was a precursor to a bigger used-goods push.