No party as Amazon turns three in India

No sales, announcements or banners greeted Amazon's completing three years in India on June 5.

On it first and the second anniversaries, the American e-commerce major had reached out to people about its India plans. This year things are quiet as Amazon copes with the latest government guidelines for online marketplaces.

"We were never high on discounts on anniversaries,'' an executive pointed out.

The only bit of celebration is the launch of an Amazon stamp by India Post. Amazon delivers products through 155,000 post offices.

Sources said Amazon might launch its Amazon Prime service in India on its anniversary. The subscription-based service includes instant videos, the Kindle lending library, express delivery for products, and access to Amazon Prime videos.

Amazon Chief Executive Officer Jeff Bezos announced last December the company had surpassed its rivals to become India's most visited e-commerce platform. The company in a letter on the site said it was giving away gift cards worth Rs 200 to customers.

"Just two-and-a-half years from our launch, Amazon.in has become the most visited e-commerce site in India. This customer response continues to amaze and energise us," Bezos said. "We will keep growing our investments in India and continue to work hard for our Indian sellers and customers," he added.

Amazon is now trying to figure out the effect of a new foreign investment policy on discounting and sourcing. "The government's press note has led to a lot of interpretational gaps. Companies such as Amazon are unclear about what exactly is influencing price," an industry executive said.

"That is why you are not seeing any major advertising on the anniversary. Amazon does not want to attract undue attention," said a source close to the company.

According to market experts, Amazon has built a loyal customer base not based on deep discounts, though discounting is still prevalent on the portal.

"Amazon started late but covered ground quickly because of international experience. It concentrated on being been consistent and reliable and that created a sustainable customer base that does not chase deep discounts," said Amarjeet Singh, partner, tax, KPMG in India.

AMAZON'S INVESTMENT IN INDIA

• Amazon invested $200 million in its India unit in 2016
  

 

The total funds infused by Amazon in India since 2015 are $1.3 billion
 

The company committed an investment of $2 billion in India in 2014