Advertisement

  • News
  • Columns
  • Interviews
  • BW Communities
  • BW TV
  • Subscribe to Print
BW Businessworld

Amazon’s Junglee Safari

Photo Credit :

Why has the world's largest online retailer, the $48.08-billion Amazon.com, opted to launch in India with www.junglee.com (a company it acquired in 1998) instead of www.amazon.in that would have got it natural traffic?

Amazon is kicking off in India with a unique experiment of a marketplace similar to that of its rival eBay, rather than its own stock-and-ship model. Since Indian law doesn't allow foreign direct investment (FDI) in front-end retail, Amazon is unable to bring in its full suite of offerings, including backend technology, large fulfilment centres and inhouse logistics and delivery.

Given that the pure marketplace model is more like a lab experiment, Amazon has tried to ensure that any fallout of the experiment doesn't leave an impact on the mother brand. Meanwhile, with Junglee it can continue building its database of shoppers, the most precious commodity in e-retailing, and amazon.in can leverage the database, analytics and shopping behaviour to target consumers when FDI is allowed.

For now, junglee.com will be a marketplace featuring 10 million products from its global catalogue plus products from 500 online retailers such as timtara.com, bestylish.com, homeshop18.com, etc. 
   
(This story was published in Businessworld Issue Dated 13-02-2012)