Amazon Fashion Witnesses 150% Growth in Business; Flipkart Yet to Catch Up

The famous Indian e-commerce giant Flipkart currently hold 70 percent market share in the online fashion space. Flipkart is able to hold this position with the help of its sister companies Myntra and Jabong which are a known name when it comes to online shopping in India. Amazon which is the biggest rival of Flipkart in India, is trying to dive in to the online fashion space with the help of some amazing Amazon offers that are hard to miss. It is well understood that this segment has the highest profit margins along with large number of repeat purchases made by customers.

Amazon has come up with “precious jewelry” section under Amazon Fashion in the last one year to make the most out of online fashion purchases made by Indians. It has tied up with more than hundreds of brands offering lakhs of designs and variety in precious jewelry.

Flipkart has left no stone un-turned in foraying into precious jewelry as well. It has already started doing ground work to launch this segment under Fashion category on its portal. What is interesting to note here is that Caratlane which is leading the precious jewelry segment online in India is planning to wrap up its operations owing to low profits.

But according to Arun Deshmukh who heads Amazon Fashion in India, the segment of precious jewelry has shown tremendous growth on their portal since inception. He states that because of Amazon’s brand name, customers trust the company while purchasing online. This is the reason why even after launching the precious jewelry segment on Amazon, customers have given positive response.

Amazon is successfully selling pendants, earrings, gold chains and nose pins in sub categories within Amazon’s precious jewelry segment. High selling products are Tushi Necklaces, Gold Chains, 22K Gold Bangles, 22K Gold Necklaces, Diamond Earrings and Diamond Nose pins.

Amazon is getting about 55 percent orders for 22K Gold Chains, 22K Gold Bangles, 22K Gold Earrings and Diamond pendants from tier II and tier III cities. While traditional designs are most sought after in smaller cities, metros have an intent towards contemporary and modern designs in precious jewelry.

Amazon has easily mastered the art of selling precious jewelry online owing to its two decades of experience in e-commerce. The company has studied the Indian market well and understands that at first, customers might not be comfortable in buying precious jewelry online.

To ease the entire process for buyers, the website provides proper price break up like making charges, gold weight and precious stones certificates just like an offline store to authenticate its products. Gold prices are dynamic, therefore there is real time tracking of prices done by Amazon which are uploaded on the website from time to time.

Just like other product categories there are return requests in precious jewelry as well but they mostly are related to issues in sizes. Amazon is giving returns without any hassles to its customers in this segment. There are no multiple calls or emails for returns and it is easy to return with just one click. The sellers of precious jewelry on Amazon are already briefed about such returns. The company also asks its customers to explain what issues they exactly faced in the size so that Amazon can improvise for future sales.

Amazon is already in talks with few brands to launch “Amazon Exclusive” ranges in precious jewelry which will only be available for retail on Amazon. Further subscribers under this exclusive section will be able to avail various benefits with the help of Amazon Coupons and other offers.

There have been a special set up made by Amazon for delivery of precious jewelry. Packages are properly sealed in water proof packing’s and road transport is the only mode of delivery which is opted specially for precious jewelry. Customers can chose prime delivery for gold coins which can be delivered within two to four days in major cities.

All Major brands at Amazon Fashion’s Precious Jewelry:

Not only does Amazon fashion claim to have the largest selection of 22K gold jewelry and diamond jewelry but the company also boasts of the largest selection of gold coins of brands like Joyalukkas, Malabar Gold , Senco, MMTC-PAMP, Kundan, Bangalore Refinery, IBJA Gold, RSBL and so on. These brands are very positive to be associated with Amazon Fashion as for them it is a new initiative in their business model. Also with this move they can reach out to more and more customers and create brand awareness pan India.

It is observed that a local jeweler for example in South India will have more demand for its designs in locations other than south and vice versa. This is the gap which Amazon is trying to fill through precious jewelry segment by making traditional regional jewelry designs available to customers all over the country.

Buying gold and other precious jewelry is associated with festivals in India. Keeping this in mind Amazon is tying up with sellers to come up with a bigger range in jewelry on the occasion of Akshaya Trithya this year. By next year the company has plans of having tie ups with at least 300 precious jewelry sellers.