Amazon’s Foray into India: Competing in an Emerging Market




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Excerpts

Amazon In India

In February 2012, Amazon began testing the waters in India by launching Junglee.com , its comparison shopping site which enabled sellers to upload their product catalog promoted by Amazon. After seeing the promotions on Junglee.com, the buyer could select the product he/she needed and the final sale would happen on the seller’s website. “With Junglee.com, we have come up with a single online platform for customers where they can shop from a wide selection of products sold by local and global retailers.

Amazon launched Junglee.com since 100% FDI in e-commerce was not allowed in India. Though the website did not allow any transaction on the site, it helped Amazon get an insight into the e-commerce space in India as well as to build brand loyalty.

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Competitive Landscape

India was the third largest e-commerce market in the world, next only to the US and China. According to a joint report by KPMG and the Internet and Mobile Association of India, the Indian e-commerce market was worth US$13 billion in 2013, with online travel accounting for over 70% of consumer e-commerce transactions in 2013. According to Forrester Research , online sales of retail goods was US$1.6 billion in 2013. According to Technopak, this was expected to reach US$76 billion by 2021.........

Challenges

While the consensus opinion among most industry experts was that Amazon was a late entrant into the world’s third largest e-commerce market, some analysts opined that launching Junglee.com was a better penetration strategy, especially after Amazon’s debacle in two emerging markets – China and Brazil. .....

Looking Ahead

In April 2014, Amazon India announced that sellers could sell their products immediately after they registered on Amazon’s e-commerce portal in comparison with nearly two weeks’ time on competing platforms. The company also launched ‘easy ship’ which would allow sellers to select a product to be picked up and shipped by Amazon. The service would also include cash-on-delivery for these sellers’ orders. “We now have a complete suite of services for sellers which will help them sell more and make more money.........

Exhibit

Exhibit I: Logo of Amazon
Exhibit II: Amazon’s Financial Highlights (2009-2013)
Exhibit III:Screenshot of Amazon India Website
Exhibit IV:Some Competitors of Amazon India
Exhibit V:Comparison Between Three Leading Players in Indian e-Commerce Industry Company