JOIN USGlobal e-commerce venture Amazon on Wednesday flew into India with the marketplace model as the country's FDI norms do not allow online multibrand retailers to sell directly to customers.
In a marketplace model the e-commerce website does not sell directly to the customer but provides a digital platform where buyers and sellers meet, with the website charging sellers for listing.
The company which has online marketplace in 10 countries will, at present, sell only books, movie titles and TV shows at Amazon.in, however, the company plans to expand into cameras and mobile phones in the coming months.
“With Amazon.in, we endeavor to build that same destination in India by giving customers more of what they want – vast selection, low prices, fast and reliable delivery, and a trusted and convenient experience,” Amazon.com Vice-President of International Expansion Greg Greeley said.
Amazon has started its India operations with 7 million local and imported books and has 100 sellers listed at the time of going live.
The company said that listing on Amazon.in by sellers is free and in celebration of the launch of India website, sellers can enjoy a promotional referral fee and free monthly subscription for the first year.
Fulfillment by Amazon
Amazon has created a fulfillment network where sellers in India can benefit from its nationwide delivery and customer service.
When using FBA, sellers across India can send their products to Amazon’s fulfillment center (warehouse) located on the outskirts of Mumbai. Once an order is placed, Amazon would pack and ship the order to the customer.
“The marketplace in India would consist of both online and offline retailers who want to get listed on Amazon and with FBA the seller would stand a huge benefit as Amazon would not only stock their products but also deliver them,” Amazon India Vice-President and Country Manager Amit Agarwal told Deccan Herald.
In April this year, Flipkart had set up their marketplace enabling numerous large and small sellers to access its customers.
In India, Amazon will also have to compete with eBay.
However, in 2012 Amazon first came into the country through Junglee.com.