uploads///Flipkart vs Amazon

Why Amazon Could Have an Advantage in India

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Walmart to lock horns with Amazon in India through Flipkart

Walmart (WMT) hasn’t been able to break Amazon’s (AMZN) dominance in e-commerce in years. However, that could change soon, as the retail giant has agreed to buy a 77% stake in Indian e-commerce giant Flipkart for $16 billion.

Amazon and Walmart will be locking horns in India, a land of opportunity for Internet companies given its population of over 1.3 billion, its burgeoning middle class, and its cheap smartphones and data plans.

Flipkart vs Amazon

While the acquisition of Flipkart could be a big coup for Walmart, Amazon likely won’t be scared to double down in India, where it’s already invested billions of dollars.

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Amazon is likely to keep growing in India

Amazon has an edge over its competition thanks to its Prime membership program, which offers its Indian members free delivery and one- or two-day delivery along with access to Amazon Music and Amazon Video, which seem to be catching the imagination of many Indians, given the young, tech-savvy population of the country.

Prime membership costs only 999 rupees (~$15) annually in India compared to $119 in the United States. Amazon still has the scope to increase costs in India in the future if it wants to. Usually, Prime members tend to spend a lot more on the platform than regular users.

Last month, Amazon’s CEO, Jeff Bezos, said it had over 100 million Prime members throughout the world.

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