Amazon Makes Debut In India Through Junglee.Com: What It Means For Buyers, Sellers, And Competitors

In early February 2011, Amazon launched Junglee.Com as a marketplace in India. In 1998, Amazon had acquired Junglee (which means "wild" in English), an online virtual database-making company, and after 13 years now it has shown its affection to the "Junglee" domain name. The reason is that Amazon can’t sell directly in India due to FDI laws that restrict foreign companies on multibrand retail in the country. Nevertheless, the Indian law does allow foreign players to operate as an online marketplace to connect sellers and buyers with each other. Amazon is following this approach by partnering with both online (Snapdeal, Univercell, etc.) and offline (HomeShop18, Bombay Store, etc.) players in the country before it makes a full-fledged entry through an "Amazon.in"-type domain. Also, Amazon just received the Indian Government’s FDI approval to set up a logistics operation. The company plans to invest INR 15 crore (around US$ 3.06 million) to set up a wholly owned subsidiary to undertake the business of online marketplace operator and retailer inter-alia courier services.

Let’s look at what Amazon’s entry through Junglee.com means for online buyers, suppliers, and competitors:

Sellers: More Business And Some Risk

Read more