Jeff Bezos, founder of online marketplace, Amazon, hinted at more investment in the India market to topple the leading position of arch rivals, Flipkart. Flipkart also owns Jabong and Myntra. The company in its first quarterly results claimed to be the fastest growing e-retailer in India.
Also amazon.in is reported to be the most visited online marketplace both on mobile and desktop as per SimilarWeb and comScore. With a backing of App Annie, an application analytics company, amazon.in claims to be the most downloaded online shopping app.
To counter the loss of market share in the Chinese market to Alibaba, Amazon is spending heavily in India to gain leadership position. Nonetheless, increasing investment in India has resulted in international losses which mounted to approximately 4 times valued at $481 million.
Amazon started its India operations in June 2013 and in the year 2014 Bezos made a commitment to spend $2 billion to scale its business in India. Last year, the company further scaled its investment in the Indian subcontinent by $3 billion.
"In India, we started from scratch and have built a lot of things ourselves. And it's always going to depend on the country that the dynamics in that country both for retail, for online, and for foreign investment. But a real key factor in all of this generally is management bandwidth as well," said Olsavsky, CFO of the online retailer.
"We continue to be encouraged by both the response from customers and sellers (from India). As far as level of investment is concerned, it is certainly one of our important investment areas. We see a lot of potential for the country and our business there", said Amazon CFO.
Bezos is also quoted saying "We're grateful that customers are responding - Amazon.in is the most visited and the fastest growing marketplace in India. It's still Day 1 for e-commerce in India, and I assure you that we' 'll keep investing in technology and infrastructure while working hard to invent on behalf of our customers and small and medium businesses in India".
Amazon's 'Prime' services in India offered at an annual subscription price of Rs. 499 with the same day or second day delivery model in major cities is accounting for most of its online orders.