Amazon.com, Inc. (NASDAQ:AMZN)’s Overseas Opportunity Lie in India Not China

Amazon.com, Inc. (NASDAQ:AMZN) is slowly shifting its focus from the world most populous country, China, having faltered over the years in pursuit of market share amidst increased competition in the e-commerce space. Attention is now shifting to India, which has in the recent past highlighted its potential as a fast growing emerging market for e-commerce. The listing of Amazon’s products on Alibaba Group Holding Ltd (NYSE:BABA)’s Tmall shopping marketplace went to cement earlier suggestions that the company was not making enough as it had hoped through its shopping site.

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Amazon has sent several executives to China over the years as it sought to shrug competition from homegrown sites like Tmall and Taobao but to no avail. India, on the other hand, offers an untapped online marketplace that is growing fast at the back of minimal competition. The U.S based e-commerce giant does not disclose any financial information related to its operation in China may be an indication that it is not doing well as many people would have expected it to.

After years of disappointments CEO and founder, Jeff Bezos, seems to have admitted that it’s time to move on to another big burgeoning e-commerce market where the chances of succeeding remain high. The Indian e-commerce market is believed to be about 5-10 ears behind China in maturity, meaning there is more room for growth for Amazon.com, Inc. (NASDAQ:AMZN) unlike in China where saturation levels could have been attained.

Shopping in mobile devices is growing fast in India as well as the use of phones with internet, sure to be of benefit to Amazon.com, Inc. (NASDAQ:AMZN) in terms of transactions. Competition is not of concern to Amazon with India as homegrown brands; Flipkart and Snapdeal have yet to dominate the marketplace like Alibaba has in China. Amazon has already indicated that it is ready to splash $2 billion in its store that launched in 2013 another indication that this is the place to pursue future growth.

Amazon.com, Inc. (NASDAQ:AMZN)’s efforts in India are being spearheaded by, Amit Agarwal, one of the very few employees who has worked as Bezos’s technical advisors an indication of how seriously the company is taking India.

About the Author

Terrel is US Markets Daily's business news reporter. She joined US Markets Daily after five years as a print reporter.

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