How Amazon US differs from Amazon India

When we talk about Amazon, the first thing that comes to mind is its enormous presence in the United States.

But for brands looking to expand globally, it's important to understand that Amazon India operates differently.

While both markets offer vast opportunities, the strategies required to succeed in each are uniquely tailored.

As the founder and CEO of Xena Intelligence, I’ve spent years helping e-commerce brands navigate these differences to optimize their Amazon businesses for growth.

Market Size and Maturity

In the US, Amazon is a mature, well-established marketplace, accounting for nearly half of all online sales in the country.

It's no surprise that it’s a highly competitive environment where brands need to fight for visibility. Amazon India, on the other hand, is still in a growing phase.

While it's one of the largest e-commerce platforms in India, it hasn’t reached the saturation levels seen in the US.

For example, consumer behavior in the US is more established, with customers often turning to Amazon as their primary shopping destination.

In India, despite Amazon’s presence, e-commerce still shares space with traditional retail and other online players like Flipkart (owned by Walmart)

This means the way you position your brand has to account for different levels of brand loyalty and shopping habits.

KEY INSIGHT: COMPETITION IS FIERCE IN THE US, WHILE INDIA OFFERS OPPORTUNITIES FOR NEW BRANDS TO GAIN TRACTION.

Consumer Behavior

US consumers are driven by convenience, speed, and access to premium brands. Amazon Prime’s one- or two-day delivery windows are a major selling point, and customers expect fast, seamless transactions.

In contrast, Indian consumers are highly price-sensitive. Discounts, deals, and cashback offers are what drive purchasing decisions more than convenience.

As a result, strategies like offering premium pricing for premium products, which work well in the US, might not fly in India without significant discounts.

The types of products that succeed also differ. For instance, tech gadgets and premium apparel perform exceptionally well in the US, whereas in India, categories like mobile accessories, affordable electronics, and daily-use items see stronger demand.

KEY INSIGHT: PRICE-DRIVEN STRATEGIES WORK BETTER IN INDIA, WHEREAS CONVENIENCE AND PREMIUM EXPERIENCES DOMINATE IN THE US.

Fulfillment and Logistics

Amazon US’s fulfillment network is one of the most sophisticated in the world. With hundreds of fulfillment centers across the country, getting products to customers quickly is rarely an issue.

Amazon India, while improving, still faces logistical challenges due to the sheer size of the country and the diversity of infrastructure across regions.

For e-commerce brands, this means that while FBA (Fulfilled by Amazon) in the US is a seamless, almost default choice for inventory management, in India, you may need to be more flexible.

You might encounter higher delivery times and additional costs for serving customers in remote areas. Understanding these logistical differences is crucial when crafting your growth strategies.

KEY INSIGHT: AMAZON US OFFERS BETTER INFRASTRUCTURE FOR FULFILLMENT, WHILE INDIA’S LOGISTICS STILL REQUIRE FLEXIBILITY AND PATIENCE.

Regulations and Market Entry

One of the biggest hurdles brands face when entering Amazon India is navigating the complex regulations. India has stricter e-commerce laws, particularly around foreign direct investment (FDI), which impacts how Amazon operates and how brands can sell on the platform.

US sellers have more straightforward processes, and it’s much easier to jump into the market without facing too many legal roadblocks.

For example, in India, FDI laws prevent Amazon from selling products directly to consumers. Instead, the platform operates as a marketplace where third-party sellers dominate. Brands must be careful about inventory ownership and ensure compliance with local laws, which can complicate your strategy.

In contrast, the US marketplace offers more flexibility in terms of direct selling, advertising, and marketplace control.

KEY INSIGHT: ENTERING AMAZON INDIA REQUIRES A DEEPER UNDERSTANDING OF LOCAL REGULATIONS, WHEREAS THE US OFFERS GREATER EASE OF ENTRY.

Advertising and Seller Tools

Amazon’s advertising ecosystem is robust in both markets, but the approach differs significantly. In the US, Sponsored Products, Sponsored Brands, and Sponsored Display are crucial tools for boosting visibility, and brands that don’t invest in ads risk falling behind their competitors.

In India, advertising is still catching up, and while ads are important, they’re not yet as dominant. That said, India’s market is rapidly evolving, and understanding how to use ads effectively will become increasingly important as the marketplace grows.

Moreover, tools like Amazon Brand Analytics and the suite of seller tools are more developed and feature-rich in the US. Brands selling in India should be aware that they may not have access to the same advanced features and will need to use third-party tools or rely more on manual analysis.

KEY INSIGHT: ADVERTISING IS ESSENTIAL IN THE US, WHILE INDIA OFFERS MORE ROOM FOR ORGANIC GROWTH BUT IS CATCHING UP FAST.

If you’re navigating the complexities of growing your brand on Amazon, whether it’s in the US or India, having a strategic partner who understands both markets is crucial.

At Xena Intelligence, we leverage advanced AI-powered tools and deep market expertise to help e-commerce brands optimize their listings and ad campaigns for growth. Ready to take your Amazon business to the next level?

Let’s set up a meeting and create a customized strategy tailored to your needs.

FAQ

1. How does AI play a role in optimizing Amazon businesses?

AI helps automate and optimize various aspects of your Amazon business, from managing ads and product listings to analyzing customer data and improving pricing strategies.

2. Can AI work in both Amazon US and India markets?

Yes, AI tools can be adapted to work in both markets. However, local insights are crucial to ensure the strategies align with each market's unique dynamics.

3. Is e-commerce disruption by AI happening in these markets?

While AI is making significant strides, it's not yet at the point of fully disrupting e-commerce. The technology is evolving, but human input is still vital for strategic decisions.

4. How can I ensure my brand’s success in both Amazon US and India?

Working with experts who understand the nuances of both markets is essential. Tailoring your approach to consumer behavior, pricing, logistics, and regulations will make all the difference.

5. Is Amazon US more profitable than Amazon India?

It depends on your category and strategy. The US is more competitive but also offers greater infrastructure support, while India is growing rapidly and offers opportunities for newer brands.

TL:DR;

Amazon US and Amazon India operate differently in terms of market maturity, consumer behavior, logistics, regulations, and seller tools.

The US market is mature and highly competitive, while India is still growing and offers opportunities for new entrants. Price-sensitive strategies work better in India, while premium experiences are key in the US.

Logistical challenges in India require more flexibility compared to the US. Navigating local regulations is crucial when selling in India.

Amazon’s advertising ecosystem is more developed in the US, while India’s is rapidly evolving.

Working with experts like Xena Intelligence can help you optimize your Amazon growth strategy for both markets.

Written by Akhil Suresh Nair - founder & CEO of Xena Intelligence