Amazon Inc. tests waters in India

India's e-commerce business is set to boom as incomes and consumer demand climb in a country of 1.2 billion people with a steadily ballooning middle class, analysts say.

Amazon's move, announced late last week, “is to get an insight into the Indian market,” Asheesh Raina, a principal research analyst at global consultancy Gartner, told AFP.

“This market could be a game-changer for Amazon — these e-commerce retailers survive on volume. India with its large number of people could be a huge opportunity,” he said.

Junglee, which means “wild” in Hindi, is a modified version of the world's top online retailer's shopping portal, allowing customers to search for different products and compare prices.

It will offer over 12 million products from more than 14,000 Indian and global brands — but buyers must make their purchases through a network of third-party suppliers either by ordering online or visiting them in person.

The setup allows Amazon's Indian website to sidestep government rules forbidding foreign multi-brand retailers from operating in India as it only directs shoppers to sites rather than selling the products directly.

“It's a clever way of getting into the Indian market that works with the rules,” Saloni Nangia, president of Indian research consultancy Technopak, told AFP.

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