Amazon India Launch is to Test Backend Infrastructure only. No Direct Retailing

Amazon launched an Indian Marketplace (www.amazon.in), its 10th country specific site (Amazon previously only operated a comparison shopping site in India (www.junglee.com)). The Indian site will be served exclusively by third-party sellers to comply with local laws and will initially focus on the media category (books and movies), followed by consumer electronics.

Local Laws of India do not permit Foreign Companies toAmazon-India operate in Multi-Brand Retail and thus Amazon has to be content as a Facilitator of e-commerce for various Indian companies. By doing so Amazon will end up Building Presence, Build Delivery & Distribution Network, Adopt to the Learning Curve of Cash on Delivery [Most Popular in India] so when the Govt of India opens the gates for FDI in e-commerce, Amazon can directly start selling its products and give Indian retailers a run for their money. (more…)