It is estimated that India has in excess of 50 million active internet users, with around 40 percent of those having previously made purchases online, making it a market of huge potential value for the online retailer.
Initially Amazon will only sell books, films and TV shows but plans to offer mobile phones and cameras within weeks. In addition, third party retailers will sell their goods through Amazon's site using a "marketplace" model, a familiar retail concept in India.
"Our vision is to become a trusted and meaningful sales channel for retailers of all sizes across India," said Amazon's Amit Agarwal, country manager in India. “We will do the heavy lifting for the sellers so that they can focus on core business functions like sourcing and pricing their products."
The company took its first steps into the Indian market in February 2012 when it launched Junglee.com, a site which allowed customers to compare prices online but not purchase items directly.
