Jeff Bezos wants PM Modi to allow online retailers to operate mixed models

After Amazon's chief executive Jeff Bezos announced to invest $3 billion in its operations in India last week, he now aims to get permission from Prime Minister Narendra Modi for opening mixed models in the country.

Amazon's Bezos has lobbied PM Modi to allow foreign investment-backed e-commerce companies such as the one he runs to operate hybrid models in India that are part marketplace and part inventory-led, the Economic Times reported on Monday citing a person with knowledge of this development.

Amazon operates mixed models- hybrid and marketplace- in the United States (US). 

In hybrid model, the e-commerce company has its own inventory whereby its sources goods, holds stocks and sells merchandises directly to the consumer.

In the marketplace model, the e-commerce company provides platform for sellers and buyers. But, the e-commerce company cannot directly sell products to consumers. 

Amazon plans to bring similar mixed model strategy in its e-commerce operations in India. 

The US online retailer is said to be of the view that such a model will be ideal for a large country like India where sourcing, stocking  and delivering goods is a challenge, the news report said. 

At present, India allows 100% foreign direct investment (FDI) in the marketplace model that Amazon, Snapdeal, Flipkart and  other e-commerce companies operate in India.

E-commerce companies with FDI cannot hold their own inventory as per the government's new regulations.

Such a move, if accepted, would amount to a dramatic relaxation of the rules announced recently for online retailers with overseas investment, the report said.