Is Amazon.com, Inc. (AMZN) Planning To Shift Focus From China To India For Growing Its e-Commerce Business?

After many years of scratching and clawing its way into the Chinese e-Commerce market, has Amazon.com, Inc. (NASDAQ:AMZN) finally accepted the fact that it cannot compete against the domestic e-Commerce giants like Alibaba Group Holding Ltd (NYSE:BABA)? The indication was given when Amazon.com, Inc. (NASDAQ:AMZN) turned to sell its products through Alibaba’s Tmall website. Does this mean that they are trying to get out of China? A Re/Code article discuss about this and gave an outlook for Amazon.com, Inc. (NASDAQ:AMZN) new market, India.

The Re/Code article pointed out that Amazon.com, Inc. (NASDAQ:AMZN) only accounted for 1-3% of online sales happening in China, which is very less. Turning to the biggest competitor in the country is like accepting the defeat with open arms and Amazon.com, Inc. (NASDAQ:AMZN) has done that by turning to Tmall, after years of competition against Tmall and Taobao.

Where else can they focus to grow its business? If the most populous country in the world cannot help the cause, why not look at the fast growing second populous country in the world, India. The article said that some of its sources claim that Bezos is already thinking in that direction.

The article says that Amazon.com, Inc. (NASDAQ:AMZN)’s interest in India was indicated by appointing Amit Agarwal as leader of India business. Agarwal was a long time Amazonian and acted as a shadow/ technical advisor for Bezos in many activities. Sending such an influential person to head India operations shows clear indication that Amazon.com, Inc. (NASDAQ:AMZN) is trying to grow big in India.

Again, India is the fastest growing e-commerce market in the world, with more people getting connected to internet and mobile devices day by day. Another reason for Amazon.com, Inc. (NASDAQ:AMZN)’s interest in India may be the fact that there is no clear leader in India in the e-commerce market as Alibaba leads the Chinese market. Flipkart and Snapdeal are two leading e-commerce businesses in India, but there is abundant opportunity for Amazon.com, Inc. (NASDAQ:AMZN) to make its mark in India and they have obliged to it by investing $2 billion for growing its business in India.

Disclosure: None

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