How Amazon plans to take on the Indian market

Amazon is making a major investment in the Indian market
Amazon is making a major investment in the Indian market

Amazon just opened its biggest office building yet, but it's not in the U.S. The new 9.5-acre campus is in Hyderabad, India, and represents the centerpiece of the e-commerce giant's growing investment in the country.

India could be a major profit opportunity for Amazon. Some analysts estimate the country's e-commerce market will be worth $100 billion by 2022, as internet penetration rates continue to climb. However, Amazon faces steep competition from Walmart, which bought the domestic e-commerce powerhouse Flipkart in 2018.

Though e-commerce represents just 3% of total consumption in India, Amazon plans to adapt to the local market by expanding its brick-and-mortar presence while also customizing its e-commerce experience for consumers who may be unfamiliar with ordering items on their phones.

Amazon's efforts are complicated by new e-commerce regulations in India, which prohibit foreign companies from selling their own products like the Amazon Echo or the Kindle, and from negotiating exclusive deals with sellers.

Add it all up and Amazon has numerous hurdles to overcome in its bid to become the dominant player in world's fastest growing large economy.