Amazon (NASDAQ:AMZN) is making new strides in the global market. First, the company announced it will invest an additional $3 billion in India, an emerging area of growth for the e-commerce giant. According to a meeting led by CEO Jeff Bezos, the company sees huge potential in India, where Amazon had previously invested $2 billion.
In India, Amazon operates as a pure marketplace, selling only products offered through its site by third parties, reported The Wall Street Journal. Last year Indians bought $16 billion worth of products online, up from $6.3 billion a year earlier.
Earlier this year, Amazon acquired online payment company Emvantage to provide shoppers in India with a digital payment option as the retailer prepared to grow its business there.
Overseas, Amazon is growing more slowly than in the United States. In 2015, sales overseas rose 5.7 percent, compared with 25 percent in North America. The company reported a $91 million operating loss abroad, but a profit of $2.75 billion at home.
In addition, Amazon announced this week the launch of its grocery delivery service in the U.K., joining one of the world's most saturated grocery markets.
Amazon Fresh food will now be available to Prime members in central and east London, marking the first time the service will be offered outside of the United States, reported Bloomberg. The selection will include about 130,000 items and same-day delivery will be available to orders placed before lunchtime. After an initial 30-day free trial, the service will cost 7 pounds ($10.16) per month on top of the Prime subscription fee.
The e-commerce giant will decide whether or not to expand to other parts of the U.K. based on learnings and feedback. Thus far, Amazon Fresh has not found a lot of success in the United States, but the U.K. online grocery market is worth 9.8 billion pounds and is expected to reach as much as 15 billion pounds by 2020, a greater saturation than in the United States.
Amazon has not added any new Fresh markets in more than a year, but that could change as the new markets come online.
- see this Wall Street Journal article (subscription)
- see this Bloomberg article
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