Junglee.com Amazon.com's India Venture

Amazon.com finally plans to enter e-commerce in India (wildly), via
www.Junglee.com
What is Amazon upto?
Amazon is planning to launch an E-commerce marketplace in India,
Junglee.com, which would be like an aggregation & comparison shopping
network between various E-commerce brands already working in India,
for example, flipkart.com, jewelove.in, letsbuy.com etc.

There are 2 important questions that arise,
1. Why does Amazon need the Indian E-commerce merchants as partners?
2. Why would the Indian E-commerce merchants be interested in partnering with Amazon 's Junglee.com rather than compete with it?

The second one is simpler to answer, so let's get to that first.
WEBSITE TRAFFIC. plain & simple, amazon.com receives more daily
traffic from India than any Indian E-commerce merchant & if it is able
to redirect all that traffic to its Indian counterpart, Junglee.com,
that could mean a lot of extra sales for the Indian E-commerce
merchants.

For the fist question, why does Amazon.com need Indian E-commerce
businesses as partners, the law says so. 100% FDI (foreign direct
investment) is not allowed in multi brand retail sector in India.

Will we see a very popular Junglee.com pretty soon, what do you think?

Further Information : What is Junglee.com?