Amazon, on Tuesday evening, has finally but quietly launched the Indian version of its e-commerce website www.amazon.in which is currently selling only books and DVDs initially. The website will be selling mobile phones and cameras in a few weeks.
Amazon does not sell the goods – uses ‘market place’ model
In India, the Amazon retail website is a place where 3rd party sellers can list and sell their products – which can be referred to as the market place model.
The stringent Foreign Direct Investment (FDI) rules in India prevent foreign firms from direct-to-customer retail selling. This is the reason Amazon cannot sell its own inventory to Indian customers on its site.
However, there is strong speculation that this law will soon be relaxed and also the foreign firm has been lobbying with the Indian officials for the same.
Amazon has just released a note on its website and a few infographics confirming the retail launch in India.
How does the selling take place ?
The reason for the silent launch could possibly be because Amazon is still not allowed to sell directly in India. Let us hope Amazon gets to learn about the Indian e-commerce market and thereby give competition to the current market leaders (read Flipkart). Good days for Indian e-commerce ahead ?