Amazon India is avidly looking for future avenues of growth. Having committed to investing $3 billion into India , Amazon is now planning to convert its subsidiary Junglee into a platform for buying and selling second hand products.
A study by the Associated Chambers of Commerce of India found that the used goods market in India grew to nearly $19 billion in 2015, up from $10 billion in 2011. With the used goods market bigger than that of new goods in India, especially in automobiles and mobile phones, the potential market opportunity in this segment is projected at $25 billion by 2020, reports Forbes.
By entering this space, Amazon can eventually enter the refurbished products market which is also growing rapidly. Some believe that refurbished goods can fetch higher margins.
