Amazon’s performance in India has been less than stellar, particularly when it comes to the rapidly growing quick-commerce market. Two years ago, a venture capital firm hesitated to invest in an Indian quick-commerce startup due to concerns that Amazon might dominate the sector. However, Amazon’s decision to refrain from entering this market has proven to be a significant misstep. The quick-commerce industry in India, led by Blinkit, Zepto, and Instamart, is now on track to achieve $4.5 billion in annual sales, roughly 25% of Amazon India’s $18 billion sales, as estimated by JM Financial.

Growth Disparities: E-commerce vs. Quick Commerce

While India’s e-commerce market has grown by 11%-12% annually, the quick-commerce sector has expanded at over 125%. The rapid growth of quick-commerce companies has begun to siphon off customers from traditional e-commerce platforms. These firms are leveraging their growing market share to secure better deals and attract more consumers, particularly in urban areas. Amazon’s lack of innovation in this space has allowed competitors, including Walmart-owned Flipkart and local players like Meesho, to gain a competitive edge.

Strategic Shifts and Missed Opportunities

Under CEO Andy Jassy, Amazon appears to have shifted its focus from e-commerce to its cloud services business in India. This strategic change has limited Amazon’s ability to capitalize on the growing e-commerce and quick-commerce sectors. Despite investing billions in India, Amazon has struggled with regulatory challenges and slow merchant adoption, allowing competitors to solidify their positions in the market.

The Road Ahead for Amazon in India

Amazon’s failure to adapt to the rapidly changing market dynamics in India raises concerns about its long-term viability in the country. Competitors have successfully filled the gaps left by Amazon, particularly in quick commerce, smaller cities, and other key categories. As the Indian market continues to evolve, Amazon will need to reassess its strategies if it hopes to regain its footing in this increasingly competitive landscape.