Amazon India Enters Classifieds Business; To Compete With Quikr, OLX
If there was one thing missing on Amazon India’s portal, it was the return of used goods in exchange of cash back or Amazon credits. The exchange policy stuck for a short time on the website and soon was replaced by cash back or other offers.
In Bengaluru, Amazon’s subsidiary Junglee, an online shopping service, has launched a pilot for peer-to-peer exchange of goods through the website itself. The service will allow anyone to sell used good and products like electronics, exercise machines and books. This puts Amazon directly in competition with popular classifieds portals like Quikr and OLX!
How will Amazon scale it?
Quikr and OLX have been around for long time and are pretty much settled in India. They already have a vast network of buyers and sellers. Even with Amazon’s financial muscle and might, it might not be too easy for Amazon to carve a niche for themselves in this space.
For consumers, Amazon is a place where you buy new and branded stuff – For them to use Amazon for buying and selling used goods may not be too appealing.
What Amazon is banking on is its expertise in logistics to handle the peer-to-peer business. The company will provide pick-up and packing services from the seller’s doorstep and delivery service at the buyer’s doorstep. Both Quikr and OLX have quite some distance to go before they can be comparable to Amazon in Logistics space.
If you remember, Quikr had also launched a similar service ‘Quikr Doorstep’ for door-to-door pick-up and delivery and online payments. Junglee’s initiative will be exactly same as Quikr’s, except it will be rich with Amazon’s experience and proficiency.
However, Amazon says that it will not be responsible for any miscommunication or mishappenings between the two parties involved, since it is providing a platform for exchange, that’s all. Once the transaction is complete, a small amount of commission will be charged by Amazon.
Right now a pilot in Bengaluru, the service can be expected to spread to other large cities in case it turns out successful. It will be interesting to see how Junglee takes on Quikr and OLX in India, since they have been pioneers in this industry and know it extremely well in and out.
Junglee also has plans to bring online small sellers who do not have the necessary infrastructure to list their business on such large marketplaces, and at the same time want to limit their total orders in a month.