Amazon.in (Marketplace) Makes It’s Way in India

Shh..! Don’t tell anyone that I’ve told you about the official launch of Amazon.in in India. That’s exactly how they launched their services in Indian market. Yes, Amazon has announced that they have launched a dedicated site for Indians however, they have restricted themselves to selling only books, movies and TV shows. They did mention that more categories will be added in coming days.

Amazon had earlier launched Junglee.com somewhere in February, 2012 which was aimed at providing product catalogs and respective sellers. The entry of Amazon in emerging market such as India is expected to give stiff competition to the likes of Flipkart and HomeShop18.com. The eCommerce business in India is already booming across the streets of India with numerous players in the trying make their way.

The quote from the press release of Amazon

On June 5, 2013, Amazon launched its newest online market in India. The marketplace provides Indian customer with a shopping destination to purchase products from third party sellers. India represents Amazon’s 10th marketplace launch.

Why So Quite Launch of Amazon.in?

The launch of Amazon.in was so soft that nobody actually knew about the announcement till the time they saw press release. Over the couple of years, company has been actively promoting products through junglee.com and it seems that they have now understood the ins and out of the Indian market. In addition to this, the strategy of the company of opting for selling only books, movies and TV shows clearly shows that they are playing it safe. Although, they have promised to add more categories in the future, the current base stands at 7 million books and 12000 movies and TV shows.

The most interesting part of this service launch is that Amazon.in is being operated by Amazon Seller Services Private Ltd which is an affiliate department of the Amazon.

Amazon.in has also introduced two programs for sellers in India. The “Sell on Amazon” and “Fulfillment by Amazon”. The most symbolic part of this announcement was the free delivery. Yes! Amazon will be delivering products for free in initial period. They do intend to charge INR 49 for the orders less than INR 499 but that’s yet to be confirmed. The third-party sellers are free to choose between opting for premium delivery or free delivery.

As expected, they support Cash on Delivery (COD) as a payment option which is hugely popular in India. Although the option is only available on the products which are fulfilled by Amazon, I do expect to see the same option from third-party sellers as well. According to my testings on Amazon.in, it seems that they have tied the nod with Billdesk for processing of payments from debit or credit cards.

Amazon already has offices in cities such as Bangalore, Hyderabad and Chennai. The move to launch its service in India is the result of the recent FDI changes that Indian government incorporated. Multi-brand retailers are not allowed to enter in Indian market and therefore Amazon had no option but to go with 100% marketplace.

Infographic credit – Amazon India

Amazon India Infographic

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