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1. Confidential Information . As used in this Agreement, “Confidential Information” means all nonpublic information relating to Amazon or disclosed by Amazon to the above-referenced company, its affiliates or the agents of any of the foregoing (collectively, “Supplier”) that is designated as confidential or that, given the nature of the information or the circumstances surrounding its disclosure, reasonably should be considered as confidential. Confidential Information includes, without limitation (i) all nonpublic information relating to Amazon’s technology, customers, business plans, promotional and marketing activities, finances and other business affairs, and (ii) all third-party information that Amazon is obligated to keep confidential. Confidential Information may be contained in tangible materials, such as drawings, data, specifications, reports and computer programs, or may be in the nature of unwritten knowledge. 2. Exclusions . Confidential Information does not include any information that (i) is or becomes publicly available without breach of this Agreement, (ii) can be shown by documentation to have been known to Supplier at the time of its receipt from Amazon, (iii) is received from a third party who did not acquire or disclose such information by a wrongful or tortious act, or (iv) can be shown by documentation to have been independently developed by Supplier without reference to any Confidential Information. 3. Use of Confidential Information . Supplier may use Confidential Information only in pursuance of its business relationship with Amazon. Except as expressly provided in this Agreement, Supplier will not disclose Confidential Information to any person or entity without Amazon’s prior written consent. Supplier will take all reasonable measures to avoid disclosure, dissemination or unauthorized use of Confidential Information, including, at a minimum, those measures it takes to protect its own confidential information of a similar nature. Supplier will segregate Confidential Information from the confidential materials of third parties to prevent commingling. Supplier will not export any Confidential Information in any manner contrary to the export regulations of the United States. Confidentiality: The Short Version Information we are sharing with you is confidential We want you to learn more about our business & our plans We ask that this presentation and its contents be shared only with persons inside your company, who have a need to know Amazon Services Confidential 1

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Page 1: Amazon: Marketplace - Start Selling Online

1.        Confidential Information.  As used in this Agreement, “Confidential Information” means all nonpublic information relating to Amazon or disclosed by Amazon to the above-referenced company, its affiliates or the agents of any of the foregoing (collectively, “Supplier”) that is designated as confidential or that, given the nature of the information or the circumstances surrounding its disclosure, reasonably should be considered as confidential.  Confidential Information includes, without limitation (i) all nonpublic information relating to Amazon’s technology, customers, business plans, promotional and marketing activities, finances and other business affairs, and (ii) all third-party information that Amazon is obligated to keep confidential.  Confidential Information may be contained in tangible materials, such as drawings, data, specifications, reports and computer programs, or may be in the nature of unwritten knowledge.2.        Exclusions.  Confidential Information does not include any information that (i) is or becomes publicly available without breach of this Agreement, (ii) can be shown by documentation to have been known to Supplier at the time of its receipt from Amazon, (iii) is received from a third party who did not acquire or disclose such information by a wrongful or tortious act, or (iv) can be shown by documentation to have been independently developed by Supplier without reference to any Confidential Information.3.        Use of Confidential Information.  Supplier may use Confidential Information only in pursuance of its business relationship with Amazon.  Except as expressly provided in this Agreement, Supplier will not disclose Confidential Information to any person or entity without Amazon’s prior written consent.  Supplier will take all reasonable measures to avoid disclosure, dissemination or unauthorized use of Confidential Information, including, at a minimum, those measures it takes to protect its own confidential information of a similar nature.  Supplier will segregate Confidential Information from the confidential materials of third parties to prevent commingling.  Supplier will not export any Confidential Information in any manner contrary to the export regulations of the United States.

Confidentiality: The Short Version

• Information we are sharing with you is confidential

• We want you to learn more about our business & our plans

• We ask that this presentation and its contents be shared only with persons inside your company, who have a need to know

Amazon Services Confidential 1

Page 2: Amazon: Marketplace - Start Selling Online

An invitation to

2Amazon Services Confidential

Page 3: Amazon: Marketplace - Start Selling Online

Agenda Slide

• An Introduction to Amazon.com

• Online Retailing Challenges & our proposal

• Amazon Seller Services – How we can help you grow your business

• Selling on Amazon & Fulfillment by Amazon

• The Value Proposition

• Commercials (Pricing of Amazon services)

• Amazon.in Seller Policies

• Next Steps

3Amazon Services Confidential

Page 4: Amazon: Marketplace - Start Selling Online

An introduction to

4Amazon Services Confidential

Page 5: Amazon: Marketplace - Start Selling Online

Amazon’s Strategy…

“Start with the customer and work backwards.”

- Jeff Bezos, Founder and CEO

We strive to be Earth’s most Customer-Centric Company

Build a place where people can find and discover anything they want to buy online

Relentless focus and innovation based on a core set of customer needs:

•Selection•Value •Convenience

5Amazon Services Confidential

Page 6: Amazon: Marketplace - Start Selling Online

Service How we help you Available in India

Sell your products on Amazon.in

Amazon stores, packs, ships and provides customer service for your products

Increase traffic to your site using ads that take consumers to your product pages

Amazon customers pay on your website using their Amazon profiles

Build and operate your online store using our all-in-one e-commerce platform

: How we seek to help grow your business

5Amazon Services Confidential

Third Party Sellers contributed to 45% of Amazon’s units sold Worldwide in 2012

Page 7: Amazon: Marketplace - Start Selling Online

With SOA, List & Sell your products on Amazon.in

7Amazon Services Confidential

You sell it, we ship it. With FBA,

store your products in

Amazon fulfillment

centers, while we pack, ship &

provide customer service

Amazon’s current offerings in India

Reach millions of online

shoppers with ads on

Junglee.com that link to

product pages on your website

Businesses Nearby

Advertise your offline store on Junglee.com; reach buyers who research products &

compare prices online

Page 8: Amazon: Marketplace - Start Selling Online

6Amazon Services Confidential

Page 9: Amazon: Marketplace - Start Selling Online

OFFLINE & ONLINE RETAILING CHALLENGES & OUR PROPOSAL

6Amazon Services Confidential

Page 10: Amazon: Marketplace - Start Selling Online

Limitations of offline retail

10Amazon Services Confidential

Reach limited to local customer base near the store Large marketing budgets required to expand reach to

new customers in other localities

Range of products on display limited to physical shelf space in store(s)

Reach

Product display space

Inventory management

Significant incremental costs of setting up new stores – real estate, manpower, overheads, etc.Cost of operations

Challenges & costs of managing inventory across multiple stores

Payment Options Managing multiple banks & debit/credit card

transactions High cost of credit card transactions

Page 11: Amazon: Marketplace - Start Selling Online

Internet Growing Rapidly in India

11

• Growing trend of Indian offline retailers going

online with their own sites, eg. JJ Mehta, Nalli

Silks, Mom & Me.

• Traditional multi-brand offline sellers also going

online with Amazon.in, eg. Shoppers Stop,

Croma, Vijay Sales, Univercell, Kamdar &

Kamdar.

Offline retailers growing online

Page 12: Amazon: Marketplace - Start Selling Online

Challenges faced by an Indian online retailer

12Amazon Services Confidential

High Capital expenditure in technology, delivery infrastructure

High Operational expenses in marketing, retaining employees with technical expertise, scaling infrastructure with demand Customers are hesitant to adopt online platforms as they are unsure about experiences like returns, warranty, on time delivery etc…

High customer acquisition costs

Customer Service brings customer retention & repeat purchases

High employee costs in hiring & training personnel

High Fulfillment costs & High cost of customer returns Cash on Delivery inefficiencies Lowers buying

commitment, increases returns & Adds collection charges

High costs in going and staying online

Customer Acquisition & Conversion

Customer Service – Expertise & Costs

Last mile delivery issues

Inferior payment options lead to order cancellations, customer dropouts and overall Suboptimal customer experience

Payment Gateway Challenges

Page 13: Amazon: Marketplace - Start Selling Online

SELLING ON AMAZON (SOA) & FULFILLMENT BY AMAZON (FBA)

13Amazon Services Confidential

Page 14: Amazon: Marketplace - Start Selling Online

Demo of amazon.in & Benefits

14Amazon Services Confidential

Product Listings on Amazon Platform

Transaction on Amazon Platform

Credit/Debit Card, Net banking & COD payment options

Inventory Stocking in Amazon Warehouse

Amazon’s Guaranteed 1-Day Delivery* for any seller using FBA

Amazon Delivery Network + Capabilities like Fast-track* shipping

Customer Service & Support

Click the Image for a demo of the amazon.in website

* Guaranteed 1-Day delivery and Fast Track shipping available in select cities

Page 15: Amazon: Marketplace - Start Selling Online

SOA & FBA: The Value Proposition

15Amazon Services Confidential

No upfront costs

Additional Sales Channel

Variable Cost

Structure

Robust Paymen

t System

sEase of

use

- Enhanced visibility to a new range of predisposed consumers

- Opportunities to Cross Sell & Up Sell

- No customer acquisition costs or capex towards warehousing

- Reduced opex towards delivery network, human capital and customer service

- Credit/Debit Card, Net banking & COD payment options available on robust payment gateway

- Use of Amazon catalog; user-friendly panel to manage orders, inventory & payments

- Dedicated seller support team & Analytics support

- Pay as you go – we make money only when you sell or use storage space

Page 16: Amazon: Marketplace - Start Selling Online

16Amazon Services Confidential

COMMERCIALS

Page 17: Amazon: Marketplace - Start Selling Online

With Amazon you can focus on growing your business

17Amazon Services Confidential

FUNCTION DESCRIPTION YOUR WEBSITE

PARTNERING WITH

AMAZON

SOA+FBA

Product Sourcing Selection plan and procurement

Pricing Product and shipping pricing

Technology Hardware, software, ongoing development and maintenance √

Catalogue E-catalogue with rich product data, images and reviews √

Customer Acquisition/ Marketing

SEO, SEM, Affiliate Marketing √Payments E-payment integration, card and net banking

fees, payments fraud √Storage Inventory storage and warehouse management √Delivery Order handling, Pick and pack, Shipping, COD

Fees and Returns, Octroi √Customer Service Phone, email and chat based customer service √Returns Inbound customer returns and returns

processing √

Seller does the work √ Amazon does the work

Page 18: Amazon: Marketplace - Start Selling Online

How Amazon’s tools & services will help you succeed

18Amazon Services Confidential

Business Reports

Inventory Management

Seller Support

Customer Contacts

Order Management

Performance monitoring

Reports on high demand products category -wise Market information on price competitiveness Seller specific insights to promote sales in the listed & related

category

Add offers to Amazon catalogue using feeds, spreadsheets, web APIs & other tools

Options to configure various means of promotion

Dedicated seller support team on e-mail and phone correspondence available 24X7

Opportunity to view & respond to customer feedback Email sent whenever customer responds to a query

E-mail/periodic alerts on orders & shipping deadlines Order/payment reports for accounting needs

Periodic notifications on performance metrics along multiple dimensions

Monitor & promote your business by leveraging the features of Amazon Seller Central portal

Page 19: Amazon: Marketplace - Start Selling Online

Cost Comparison on Amazon promo rates

19Amazon Services Confidential

LINE ITEMSCOSTS -YOUR SITE (INR) LINE ITEMS

COSTS -SOA (INR) LINE ITEMS

COSTS - SOA+ FBA (INR)

Item Sale Price 5300 Item Sale Price 5300 Item Sale Price 5300Traffic 393 Ref. Fee@5% 265 Ref. Fee@5% 265Payments 122 Closing Fee 10 Closing Fee 10Packing and Labor 35 Packing and Labor 35 Per Unit Handling Fee 0Shipping 70 Shipping 70 P.U. Ship Fee 20Storage Fees 4 Storage Fees 4 Storage Fees 7.1Customer Service 1 Customer Service 1 COD + Octroi Service 53Cost of Returns 7 Cost of Returns 7 Returns + CS 0Service Tax 0 Service Tax 34 Service Tax 44TOTAL* 632 TOTAL* 426 TOTAL* 355Additional Charges Seller Paid Octroi Additional Charges Seller Paid Octroi Additional Charges None

Bid Amount ($) 0.55 Weight of product (kgs) 0.5Bid Amount (INR) 27.5 Multiples of .5kg in prod 1Conversion Rate (%) 7 Space occupied (cu.feet) 0.5% of prepaid txns 40%% of COD txns 60%Prepaid txn charge (%) 2.75%COD txn charge (More than 30) 2%COD txn charge (Less than 30) 30Packing and Labor 35Shipping 70Storage fees 4Customer Service 1

Legend:Cost of selling on your channel:

Cost of selling via Amazon:

Page 20: Amazon: Marketplace - Start Selling Online

Pricing for Selling on Amazon

20Amazon Services Confidential

And Get:

Achieve National Presence

Sell in 15+ categories Zero Cost of Traffic Zero Cost of Payments Amazon’s E-commerce

Technology & Catalog Fraud Protection Benefit of Zero

Subscription Fee & Reduced Referral Shares*

* Zero Subscription Fee applicable till June 5, 2014** Reduced Referral Shares applicable to different categories are as follows: Books & Movies till June 5, 2014; Consumer Electronics, PC, Tablets, Mobiles & Accessories till June 25, 2014; Health & Personal Care till September 12, 2014; Jewelry & Watches till September 19, 2014 & Home & Kitchen till September 26, 2014*** Charges are exclusive of Service Tax @ 12.36%

SOA Referral Fees (per Unit Sold)***

Promotional Rate (First Year)**

Standard Rate

Books, Music & Movies 5% 12%

Consumer Electronics (includes Camera)

5% 8%

Accessories (includes PC Accessories, Electronic Accessories & Mobile Accessories)

5% 12%

Mobile Phones 4% 5%

Personal Computers, Laptops & Tablets

4% 5%

Toys & Baby Products 5% 15%

Personal Care Appliances

5% 15%

Jewellery 8% 15%

Watches 8% 15%Home & Kitchen 5% 15%Beauty 5% 15%Video Games - Console 5% 8%

Video Games - Games 5% 12%

Luggage 8% 15%

FEE COST (INR)

Subscription

Rs. 499/- per month (applicable after June 5, 2014)

SOA Referral Share

By Category (see adjoining table)

Closing Fee

Rs. 10/- per unit

Page 21: Amazon: Marketplace - Start Selling Online

Pricing for Fulfillment by Amazon

15Amazon Services Confidential

Increased Order Conversion through FBA branding*

Fast Track shipping to select cities

Amazon’s Guaranteed 1-day Delivery to select cities

No additional COD or Octroi charges

Guaranteed delivery & trackable courier**

Trusted customer service and returns

Insured shipment

High quality packing material

You Pay:Promotional Rate (First Year)

Standard Rate (Media^)

Standard Rate (Non-Media^^)

Standard Rate (Oversize)

Pick & Pack Fee (per Unit)

Free Rs.10 Rs. 25 Rs. 50

Weight Handling Shipping Fee (per Unit) 

First 500 gms

Rs.20Rs. 35 (for oversize only)

Rs.40 Rs. 45 Rs. 100

Every additional500 gms

Rs.20Rs. 50 (for oversize only)

Rs.40 Rs. 45 Rs. 70

Delivery Service Fee (per Unit)

1% of Item Value

1% of Item Value

1% of Item Value

1% of Item Value

Storage Fee (per Cubic Ft/Month) 

Free for the first 3 months

Rs.14.20 Rs.14.20 Rs.14.20 Free storage for 3 months after your first shipment to the Amazon FC Free FBA shipping for units > Rs. 20,000 (not for Oversize products) Packing material weight – Media: 75 gms; Non-media: 100 gms & oversize: 500 gms Oversize Defined as: Greater than Any Of the following – 12 kgs in mass OR 45cm on longest side OR

34 cm on median side OR 26 cm on shortest side. Per unit Removal charges: Media: INR 10; Non Media: INR 25 & Oversize: INR 50 All Charges are exclusive of Service Tax @ 12.36%

* As observed on amazon.in as well as in other geographies** In pin codes serviced by our couriers with trackable service

And Get:

^Media Categories: Books, Movies, Music, Videogames & Software^^Non Media: all other categories

Page 22: Amazon: Marketplace - Start Selling Online

AMAZON SELLER POLICIES

22Amazon Services Confidential

Page 23: Amazon: Marketplace - Start Selling Online

MANDATORY POLICIES for sellers on Amazon.in All customer queries are to be responded to

within 24 hours

Pre-fulfillment Cancelation rate* (seller-canceled orders) to be less than 2.5%

Late Shipment rate on all orders to be less than 4%

For damaged/defective products, return pick-up is to be arranged/paid for by the seller.

Only products with India-specific manufacturer warranty can be sold on Amazon.in

Pricing of products on amazon.in is expected to be equal to or lower than the price on your site

Seller is expected to deliver pan India & bear Octroi charges wherever applicable

Requirement of UPC/EAN and bar codes to list your products

Manufacturers who wish to sell their own products on Amazon.in are expected to have trademark registered for their brand

23Amazon Services Confidential

Product Category

“Change of Mind”/Unopened

Damaged/Defective Products

Books, Movies & TV Shows, Music, Beauty & Health

7 days 30 days

Electronics, Video Games, Toys, Baby, Home & Kitchen

10 days 10 days

Watches, Fashion Jewellery, Luggage

30 days 30 days

Amazon’s Return Policy for different categories

Page 24: Amazon: Marketplace - Start Selling Online

Next steps

Confirm interestDesignate business and tech points of contactRegistration and account creation

Tax registration (only for FBA)Onboarding and integration Launch on the Amazon platform

24Amazon Services Confidential

Page 25: Amazon: Marketplace - Start Selling Online

THANK YOU

25Amazon Services Confidential