India: Amazon to invest USD 2 bln to expand ecommerce business

Thursday 31 July 2014 14:40 CET | News

Amazon has announced that it will invest USD 2 billion to expand its Indian business, reports.

The decision comes right after local online retailer Flipkart has raised USD 1 billion to fund its own expansion. Online retailing accounted for USD 2.3 billion of Indias USD 400 billion retail market in 2013. Additionally, research company Crisil Research estimated in a February 2014 report that sales are growing at more than 50% annually and are on track to reach USD 8.3 billion by 2016.

Amazon India has expanded to 17 million products despite the fact that the company is limited by Indian law to providing products through third-party merchants. Also, the retailer has recently revealed plans to open 5 new distribution centers in India. With the new distribution centers, Amazon will have 500,000 square feet of storage capacity, enabling it to deliver goods on behalf of Indian merchants that sell on

The new distribution centers will be in Dehli, Chennai, Jaipur, Ahmedabad and Tauru.

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Keywords: India, Amazon, Flipkart, ecommerce, investment, fund, online retailer, online payments, Customers, merchants
Categories: Payments & Commerce
Countries: World
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