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Amazon and eBay Closer to Enter India E-Commerce Market

Amazon and eBay Closer to Enter India E-Commerce Market

| On 24, Jan 2014

To step into a different market has been always a challenge for big or small companies. The E-Commerce market is not making any difference, especially when companies like eBay and Amazon have been involved.

India is a tough market for outside e-commerce companies, because of the domestic regulations and market trends. Indian government set up strict rules for companies backed by foreign money from warehousing their inventory on Indian soil, or try to sell directly to the domestic consumers.

Why eBay and Amazon wants so much get into this market?

Here is the statistic: According to the Hong-Kong based investment bank CLSA, India e-commerce market is now over $3.1 billion, but in the next five years it`s expecting to reach around $22 billion market. This is a huge opportunity to brake into the Asian market. I am sure that these companies will sooner or later get into this market having in mind the disappointing economic growth of India and the search for ways to attract foreign investments. Of course, as every new market, in India there is also huge competition in the face of Flipkart and Snapdeal who has more than 4 million products and 20,000 sellers.

What Are the Outcomes?

Despite the small positive steps from eBay and Amazon to get into India, there is a still a change these companies to be not able to get into the direct sales. The biggest threat and concern in related with the small and midsize business, which cannot compete with the power and technological opportunities, which eBay and Amazon have. Still a lot of questions in-front such important step by the Indian government.


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