Amazon Might Be Preparing to Enter India Soon

eCommercePluggd.In has uncovered compelling evidence that suggests that the American online ecommerce giant Amazon is preparing to expand to India soon. It has hired Madhu M from Landmark to head its book operations in India. It is also hiring people with earlier exposure to retails or online domain across all levels. Additionally, it is currently searching for a Manager for its Fulfillment Center.

Amazon hiring across all levels in Non-Tech, IIM,ISB good education MBA grade… earlier exposure to Retails or Online domain…Exposure de…less than a minute ago via LinkedIn Favorite Retweet Reply

Ecommerce in India is still in its infancy, but is experiencing rapid growth. If Amazon gets into the Indian market, it will face stiff competition from the likes of Flipkart and Infibeam. There is a good chance that Amazon might decide to acquire an already established player, instead of deciding to go in alone. In India, where most consumers are still wary about shopping online, reputation matters. Even more crucially, FDI (Foreign Direct Investment) caps in India make it pretty much impossible for an US based entity like Amazon to launch a consumer-facing ecommerce venture in India, unless it wants to restrict itself to the six metros.

In the past we have seen eBay acquiring, and Groupon picking up SoSasta to enter the Indian market. Pluggd.In believes that a deal with Flipkart is off the table as the buyout price demanded by it was too high for Amazon. Earlier in the month, Flipkart raised $20 million from Tiger Global, which strongly suggests that it is planning on staying independent. Infibeam, which has been criticized in the past for ripping off Amazon’s products, website layout, and even logo, was also reported to be in talks with Amazon earlier, but that failed to yield any result.

Given the success and popularity of Amazon-like ecommerce services in India, it seems a no-brainer that Amazon itself will be interested in grabbing a piece of the pie. However, when and how it will do so remains to be seen.

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Pallab De

Pallab De is a blogger from India who has a soft spot for anything techie. He loves trying out new software and spends most of his day breaking and fixing his PC. Pallab loves participating in the social web; he has been active in technology forums since he was a teenager and is an active user of both twitter (@indyan) and facebook .