The head of the India-based unit of Amazon.com Inc. – Mr. Amit Agarwal shared that the $2-billion bet of the company on the relatively small e-commerce market of the country is about being ready when the market takes off.
Mr. Agarwal said in an interview for the Wall Street Journal that the e-commerce market in India is expected to boom in coming years, which is why Amazon.com Inc. has decided to build a stable nationwide delivery system. The company, which is currently the biggest online retailer in the world, is also planning to make new technologies investments in the Asian country.
Mr. Agarwal, who is currently occupying the position of a Vice President and Managing Director of Amazon Seller Services Pvt also commented that the companys investment that amounts to $2 billion and was officially unveiled last week, “would never make financial sense”. As reported by the Wall Street Journal, he said: “It makes sense to us when we start looking at the idea from a 10-year viewpoint. We are willing to invest money today to create that long-term shareholder value.”
The news of the investment and the opinion of Mr. Agarwal comes at a time when it also became clear that the company is to provide special privileges to companies, which sell their wares directly through the online store of Amazon.com Inc.
Amazon has started working in collaboration with some companies such as Burberry Group Plc and Levi Strauss & Co., on deals that provide them with the opportunity to control the way their merchandise is sold through the website of Amazon. According to a market researcher L2s study that is to be officially announced this week, the retailers Chief Executive Officer Mr. Jeff Bezos has given these companies the chance to limit the sale of goods from third-party resellers.
Amazon.com Inc. was 0.78% down to close at $311.45 per share yesterday, marking a one-year change of +4.90%. According to the information published on CNN Money, the 37 analysts offering 12-month price forecasts for Amazon.com Inc. have a median target of $400.00, with a high estimate of $500.00 and a low estimate of $330.00. The median estimate represents a +28.43% increase from the last price of $311.45.
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