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Amazon Plans to Handle Own Indian Logistics Network

In the next two years Amazon, the world's largest retailer, will use its own logistics network to deliver nearly every product sold on its Indian portal.

This move along with the launch of high-value products like apparel and increased tie-ups with local sellers will form the crux of the Seattle-based company's strategy to take on competitors in India, one of the world's fastest growing e-commerce markets.

"We don't want to repeat the mistakes we made in China," said Amit Agarwal, the country head of Amazon India, who says building a clear differentiation over rivals will drive the company's agenda.

"We have a lot of appetite for investment in India," said Agarwal, speaking about the next steps for his company. "We are very cautious when we enter a country, but when we do we are very aggressive," he said. "India is a very important geography for Amazon."

It is this focus that is driving the homegrown players, Flipkart and Snapdeal, to speed up their innovations and services.

In the seven months since Amazon launched its portal, prices have been slashed across most categories, and Flipkart, Snapdeal and Amazon have announced either same-day or next-day delivery within days of each other.

Such aggressive tactics are set to continue as the three horizontal e-tailors battle it out for leadership in the online retail industry that has doubled in size within a year to reach $2bn.

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