Amazon has received approval from FIPB (Foreign Investment Promotion Board) for setting up the logistics service in India. Amazon has been taking a series of baby steps for entering into the Indian market at the right time. The approval for setting up the logistics center adds a stepping stone for the Amazon expansion plans in India.
Amazon is waiting for the regulatory clearances from the FDI advisory board for starting the full fledged operations in India. If the clearance is obtained, then its going to be an e-Commerce war in India and the customers are the ones who are going to be benefited from the war.
It would be interesting to watch out for the mergers in the e-Commerce space. Flipcart move to acquire Letsbuy is a brilliant one at the right time. On the contrary, Amazon has setup Junglee.com to understand the customer behavior which would be helpful in some of the strategic decisions for its tie-ups with vendors in India. Amazon’s Logistics operations would be based out of Mumbai.