Amazon to bring India, Pakistan closer – Research Snipers

Amazon to bring India, Pakistan closer

There have been negotiations going on between Amazon and Pakistan-based fashion portal Clicky.pk. Presently Amazon owns 33% stake in Clicky.pk via its acquisition of the Dubai’s online retailer Souq. Souq invested in Pakistani company in 2016.

Now if Amazon increases its stake in Clicky.pk, the Indian sellers on Amazon can find more options and buyers in Pakistan. Thus bringing India and Pakistan closer. 

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One of the people aware of the ongoing negotiation said, “If a transaction (between Amazon and Cicky.pk) goes through Indian merchants can sell more goods in Pakistan, which can be routed through Dubai, where Souq is based.”

Pakistan has a list of around 1200 goods that cannot be imported from its neighbor India. Now the only way India & Pakistan trade now is through a third-party mainly Dubai or Afghanistan.

As per a source, “Several Indian FMCG products are popular in Pakistan. But a major chunk of products is raw material, unbranded food item, clothing, and jewelry. Typically, most of these products are routed through Dubai and the big traders in Karachi who import these products, from where they are distributed across the country.”

Amazon and Clicky.pk have not confirmed or denied this news. The advantage here for Amazon is that if the deal works, the company will strengthen its position in the Asian market. It will give competition to China’s Alibaba which is also in talks to own stakes in Pakistan’s biggest online e-commerce platform, Daraz.

Clicky.pk is a competitor of Daraz in Pakistan thus both Alibaba and Amazon will have their own representative companies in Pakistan.

As per experts, Amazon wants to strengthen its position in the subcontinent. One of the sources said,  “These three geographical locations — India, Dubai, and Pakistan — makes sense for Amazon to scale up. Amazon will make entry into multiple Asian countries, a new strategy to increase its volume, optimize its sourcing and reduce single-country dependence for revenue flow.”