Amazon India in talks with government to relax FDI norms in e-commerce

Global retail giant Amazon.com Sunday said it is 'engaging' with the government for relaxing of foreign investment norms in e-commerce space, following which it will adopt a hybrid model to start product retailing.

"We believe FDI in e-commerce is good for the customers.

Not only will they get more choices but it will also improve the level customer service for the industry," Amazon Director and General Manager (Seller Services) Amit Deshpande told PTI.

"We are engaging with the government to relax FDI norms in e-commerce space," he added.

Deshpande said that once the government relaxes FDI in e-commerce, Amazon.in will follow a hybrid model where apart from marketplace model, "we will begin retailing products".

The company, which launched operations in India in June, currently operates with marketplace model. Under this model, Amazon.in will not sell products directly to customers but only provide a platform to sellers.

India's Foreign Direct Investment (FDI) policy restricts e-commerce companies from offering services directly to retail consumers. At present, 100 percent FDI is allowed in business -to-business (B2B) e-commerce but not in retail trading.

The company, which began operations with just two product categories - books and movies, has now over 15 products categories and has over 1,400 sellers listed on its website.

"India is huge opportunity for us. We are here for long term. We believe Indian e-commerce space has got potential. We will continue to add categories such as sports and apparel," Deshpande said.

Amazon entered the Indian online shopping space with its price aggregator and selection website Junglee.com in February 2012.