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And India’s cash economy did not facilitate online transactions. Three years ago, relatively few retailers there sold their products online because they believed e-commerce to be too complex and time consuming. There is no shortage of goods produced by Indians, but most vendors in the country are small. Insight CenterĬhallenges, possibly even hurdles, for Amazon, but not insurmountable ones - they just required an innovative business model, beginning with finding products to sell. That meant any venture would basically be a third-party seller for Indian-made products. And, determined to protect its own, India enacted a rigid FDI policy restricting foreign multibrand retailers from selling directly to consumers online. Cash, not credit cards or checking accounts, is still the rule. Only about 35% of India’s population is connected to the internet. The bad news: 67% of the population lives in rural areas characterized by an underdeveloped infrastructure.

The good news included a very young populace - more than 65% under age 35 - rising levels of disposable income, and ubiquitous cell phone ownership (80% of the population, by one estimate). The country posed a classic case of good news, bad news. and to other countries.Ī decade into the new millennium, India, with its billion-plus people and largely untapped e-commerce market, beckoned. As the company added more titles and expanded its product line, it developed an ecosystem rooted in the wholesale purchase of goods huge, strategically located fulfillment centers and contracts with national and regional carriers who shipped its products throughout the U.S. Thanks to Bezos’s vision and a highly successful, user-friendly website, by 1997 was the first online retailer to boast one million customers. Founder Jeff Bezos’s initial business model was fairly simple: Source a single product type from wholesalers and publishers and sell it directly to consumers on the then fledgling internet. That something was the very business model that had made Amazon an internet powerhouse in the U.S.Ī debuted as an online bookstore in 1994. I have used TT for 5 years now and my situation is pretty typical and I find TT quite intuitive to use.When Amazon decided to enter the Indian e-commerce market, it was clear from the outset that something would have to give. For the complex situations, you shouldnt be using TurboTax and you should use a tax professional.

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