In an article on Re/Code, it was reported that Amazon.com, Inc. (NASDAQ:AMZN) is going to face a massive competition on the global scale because US and Europe is no more the biggest e-commerce market. The source said that Indian ecommerce market is expanding with a boom and Amazon has no user base and delivery system there. Flipkart is the rival of Amazon.com, Inc. (NASDAQ:AMZN) in the emerging markets and an e-commerce behemoth in India. It has announced a $700 million investment. Recently, it announced a $600 million and $1 billion investment and the company revenues are surging with an exponential rate, thanks to the increasingly changing shopping trends in India.
Indian retail market sales are $3.2 billion for 2014 and this will grow more than 50% in the next four years, according to the source. Amazon.com, Inc. (NASDAQ:AMZN) has no user base, partnership in India, which leaves it completely sidelined in this major growing market which will make a difference in the coming years. Flipkart and Snapdeal are the two major online retail players in India. eBay, on the other hand spent $133 million a few months ago to increase its partnership with Snapdeal.
The source said that Amazon.com, Inc. (NASDAQ:AMZN) announced a $1 billion investment in summer after Flipkart announced its $1 billion investment. This was perhaps a marketing move from Amazon.com, Inc. (NASDAQ:AMZN) as no development on this announcement is recorded yet.
Amazon.com, Inc. (NASDAQ:AMZN) started its operations in India in 2013; it will have to cover a long distance to come even close to the other e-commerce giants in the local market. Amazon.com, Inc. (NASDAQ:AMZN) products can only be showcased on the web in India by third party retailers as the local laws do not allow the US e-commerce giant to sell its products directly.
Ken Fisher’s Fisher Asset Management owns over 2.4 million shares in Amazon.com, Inc. (NASDAQ:AMZN).