Powered by digitalization, economic growth, and younger demographics, e-commerce giant Amazon is “excited” about the Indian market, according to Manish Tiwary, its country head, who also claims that the country’s e-commerce possibility “is huge” in the long term.

Amazon India’s Country Manager for Consumer Business, Tiwary, spoke about “a very clear calendar” for turning this region into a lucrative market in an interview with PTI. He also promised that the company is on pace to meet its 2025 goals.

Given a vast opportunity for growth in this mostly untapped market, Amazon, which recently celebrated ten years in India and has a client base of over 100 million, nevertheless views this as “day zero” in the country.

“Worldwide for us…India continues to be a very exciting market…So worldwide Amazon is very focused and continues to be super excited with India,” he pointed out.

According to him, the business is dedicated to using market potential and showcasing fresh developments.

Tiwary called the Indian e-commerce business “exciting and attractive” and said that as long as the industry focuses on getting the “customer and seller basics” correct, “headroom is not a challenge for this industry, at least for the next few decades.”

Amazon’s confidence in India’s e-commerce potential is supported by the nation’s rapid economic development, digitalization, widespread use of mobile and the internet, and most recently, the deployment of 5G.

“I can’t think of too many markets of this size that can have this kind of potential,” he said

When questioned about the road to profitability and the methods taken to achieve it, Tiwary responded that the organization has a certain timeline in which it anticipates turning profitable on several markers, just like any corporation.

“The good news is, India business is meeting all those relevant markers on profitability as we go along,” he said, explaining that the company undertakes continuous review of its portfolio.

Based on such portfolio evaluation, it expands on successful ideas and gradually drops unsuccessful ones.

Rising family incomes, a boom in internet users, and the use of smartphones have all contributed to the explosive expansion of India’s e-commerce market. The FIS 2023 Global Payments Report, which was published earlier this year, projects that India’s e-commerce sector will increase from $83 billion in 2022 to $150 billion in 2026.

“As far as the core profitability is concerned, we are very happy with how we are meeting the markers on that journey…let me assure you there’s a very clear calendar on how we plan to make this business profitable,” he said.

A Redseer analysis projects that Indian e-commerce would expand at a compound annual growth rate (CAGR) of 27% to reach $163 billion by 2026, which is over three times the growth of the whole retail sector.

“The headroom is not a challenge for this industry, at least for the next few decades,” Tiwary said.

According to Tiwary, market rivalry from Flipkart, JioMart, and other players won’t be a cause for worry given the low penetration of e-commerce.

“We do not worry about competition, more players will bring (more) innovation and we are very respectful…You worry about these things when your penetration is 90 percent, so as a company, we have always focused on customers,” according to the Amazon senior executive

However, India is not a market where one approach works for everybody, and a global playbook cannot be applied to India, therefore businesses must take into account regional specifics like language, selection, and other factors.

“We feel confident that the first 10 years have taught us ways on how to meet customer expectations. The market is so nascent…more the innovation, the more the players…I think, in the long run, it is much better for our sellers and customers,” he said