Amazon launched Junglee.com in the first week of Feb-2012 as a part of its strategy to enter into the Indian e-Commerce space. Junglee.com enables sellers to showcase their products and acts as a middle-man in selling its products. At the moment, Junglee.com does not perform any logistics services for the sellers nor perform transaction at its website. Junglee.com was acquired by Amazon in 1998 from Indian entrepreneurs Rakesh Mathur and Ashish Gupta.
When I had a first look at Junglee.com website, it looked similar to Google Product Search for its US market. Google has now integrated its Google Payments/ Offer / Checkout services with its shopping platform. The interesting fact is that Google Product search is not quite organized for Indian market and Amazon is going to quite benefit from it through the Junglee platform. Remember eBay is not quite a big hit in India yet. After huge struggle from various players in the e-Commerce space for nearly a decade, Flipcart has successfully emerged as a winner in the space.
The question which still remains is what Amazon going to do with its Junglee platform. It is for sure not a platform where users can look out for discounted products (discounts from Junglee), but more of a product discovery application.
The reason for the launch could be attributed to the following facts:
– High valuation of the existing e-Commerce players in India. Amazon feels that it is not worth spending some “huge” money in acquiring existing players in the market.
-Time to build the logistics supply chain in any new geographies (similar to the services from amazon.com). Amazon is secretly doing the background work to build up its logistics supply chain and revamping its platform for online services. A sneak look at http://services.amazon.in/ . The entry now will ensure that Amazon is not left out in the race once its supply chain is built and ready-to-go.
Image Courtesy: Junglee.com