Amazon is looking to mobilise its massive user base to carve itself a space in India’s online peer-to-peer (p2p) selling space and take on homegrown rivals Olx and Quikr.
The company has integrated its peer-to-peer selling platform Junglee with its own horizontal marketplace to allow individuals to sell new and used items online. Amazon has launched the service in Bengaluru and has begun promoting its ‘Sell as Individual’ service to its users.
Amazon began piloting Junglee’s end-to-end service in Bengaluru in August, promising user the convenience of handling pickups, packaging, delivery and payments. The company will charge a fee of Rs 10 for processing orders below Rs 1,000, Rs 50 for orders between Rs 1,000 and Rs 5,000 and Rs 100 for orders above Rs 5,000.
The jump into peer-to-peer selling will give Amazon customers a choice of both new and used products, while sellers will benefit from the company’s already large customer base. Further, used products could help to attract more users onto Amazon thus growing its overall user base, in the hope to match rival Flipkart’s 100 million claimed users.
Amazon spokespersons remained unavailable for comment on this story.
Utilising its existing logistics setup, Amazon will enable individuals to sell items within their own cities. The company did not specify how quickly orders will be processed, but had earlier mentioned that buyers on Junglee’s peer-to-peer platform will have the option to return products within seven-days if defective or not as described.
“On Amazon, you can post your new or used products online across different categories – mobiles, books, fashion jewellery, tablets, watches, laptops and video games. This service is currently available only in Bangalore,” a statement on the company’s website read.
While Amazon’s closest rival Flipkart hasn’t yet sunk its feet into p2p selling, it’s the largest investor Naspers owns India’s p2p selling leader Olx. Snapdeal has a platform called Shopo. Quikr on the other hand has begun focusing on specific verticals such as homes, cars and jobs, while offering a similar end-to-end solution like Amazon through its Quikr Doorstep service.
“For the moment it may look like the right thing to hunker down and focus only on what you can defend. But the fear is that if you leave everything else out, someday somebody will be able to come in the challenge you on that,” said Harminder Sahni, Founder and MD at Wazir Advisors.
India’s digital classifieds industry is expected to grow threefold to $1.2 billion (around Rs 7,900 crore) by 2020, with horizontal classifieds cornering around 30 per cent share, according to a joint study by Google and KPMG in September. Google says search trend reveals that non-metros such as Pune, Ahmedabad, Chandigarh, Kochi, Coimbatore, Indore and Jaipur have seen a four-fold increase in local searches for e-services, real estate and automobiles.