How Amazon India is planning to win the upcoming festive season?

This is the first time Amazon India has opened its homepage for external brands; so far, brands were only allowed to buy promotional space.

With the approaching festive season internet biggies including Google and Facebookare leaving no stone unturned to make the best out of event. Among the economic slowdown, big ecommerce companies including Flipkart, Amazon are tweaking their strategies to leverage the event.

For instance, In June 2019, Amazon India had introduced ‘Click-out’ campaign which allows its listed sellers to place display ads on its website and app.  To woo the sellers, etailer is also allowing its existing sellers to use its vast data to build targeted campaigns.

This is the first time Amazon India has opened its homepage to external brands; so far, brands were only allowed to buy promotional space. In terms of pricing, The Click-out campaign is slightly costlier than Google and Facebook’s digital ad products, but the e-commerce major is pitching its large traffic and understanding of customer intent to drive leads. As of now, Amazon has run campaigns with brands including Citibank and Maruti Suzuki.

This seems to be Amazon’s strategy to outbid sellers using internal advertising tool which will ultimately result in excellent visibility of great products at great pricing. Once again Amazon drives the market with an excellent customer centric strategy.

Interestingly, Amazon’s arch rival Flipkart has already start winning digital advertising space. As per the media reports, Flipkart has entered into a partnership with OTT platform Hotstar to help target consumers with more relevant ads on the latter’s platform. 

Is ‘Click-out’ useful to SME & MSME brands?

Festive sale is the time when big brands spend exorbitant amount of money on promotions and discounts. In such scenario, finding the right product placement could be stressful for SME & MSME brands. Right products get lost in the competition all the time which ultimately compels the customer to buy the same brands even if they do not want to. As the result,  customer left with no choice but to buy from deep pocket big brands.

Speaking on same, Nikunj Kansara, Co-Founder at First Ventures said, “The customer is always right, it's their choice irrespective of the placement of a small or a big pocketed brands. Also, Festive seasons or ART events on platforms should be used more to create a loyalty base and for which spending at all levels are inevitable. Also these small brands or medium level brands have to start at some point and strengthen their position on the marketplace by doing value level expenditure. The idea always is to give a quality product with best possible service and eventually create a market position with loyal customer base. After all one brand cannot own the entire market.”

Clearly, this is a win-win strategy for Amazon. But will this strategy sustain in long run? Only time will answer..





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