Unable to sell direct, Amazon India looks for tie-ups with retail chains

08 Jun 2013

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Online retail giant Amazon.com Inc, which entered India this week, has reportedly adopted  a different approach for the country than in the West, planning to enter selling partnership with several leading brick-and-mortar retail chains like the Future Group, Shoppers Stop, Crossword, Viveks, UniverCell, Spencer's Retail and Woodland, whose wares it will sell their wares through the Amazon Marketplace India.

In the West Amazon fights tooth and nail with retail chains like Walmart and Tesco; but In India it seems to have adopted a different approach.

India is the 10th country where Amazon Marketplace is available. The service is a central point from which independent retailers can sell a range of goods and products from third parties using the 'marketplace' model that is also adopted by Japanese retailer Rakuten, among others.

Several retailers confirmed to The Economic Times that they are keen to enter into a selling agreement with Amazon. "Amazon can become a significant sales channel for us," said Spencer's Retail chief executive Mohit Kampani.

Future Group founder Kishore Biyani said the Amazon Marketplace constituted a good opportunity. "We will consider it. After all, we are merchants. We have to sell,'' he said.

According to the ET report, Reliance Retail has also been approached by Amazon.

Amazon on Wednesday launched its global marketplace model in India as amazon.in, but the company has stayed away from directly selling products to customers since Indian foreign direct investment rules in multi-brand retail prohibit e-commerce in any form by foreign firms.

Hence, Amazon wants to rope in top retailers and provide its platform as a sales channel for them.

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