Indian e-commerce is growing significantly, providing huge opportunity for Amazon and other retailers. New Indian regulations may pose a challenge; however, Amazon is facing these head-on. Amazon continues to take over more of its own shipping services worldwide, which could cut losses.Competitor Alibaba announced slowed growth and is battling counterfeit goods that have proliferated on its platforms.

We recommend investors buy Amazon shares now while prices are lower as future growth is expected.

Amazon (NASDAQ:AMZN) has a corner in the e-commerce market in India, and its market presence appears poised for substantial growth. Previously, regulations regarding e-commerce retailers operating within the country were murky, but the government allowed 100% foreign direct investments, or FDIs.

This greatly benefited Amazon. To provide clarification regarding FDIs, the government issued guidelines for e-commerce retailers. While 100% FDIs will continue, the government has stated companies with more than 25% of their sales from a single vendor will be barred. This holds even if those sales come from company-owned inventory.

This change may provide a hiccup for Amazon in India, although it is highly likely Amazon and other e-commerce giants will devise ways to work around the regulations.

As Amazon Heats Up, Alibaba Slows Down

Alibaba (NYSE:BABA) has, by contrast, had a slowing transaction volume. The company has been battling counterfeit goods being sold on its platforms. Alibaba said sales have slowed as it prepares for its fiscal year end. Alibaba will be focusing on sustainable growth of higher quality as it tries to eradicate the problem. These challenges should be expected to have an impact on the company's stock value over the next year as the company works to clean up its platforms and improve its reputation among consumers.

These issues come after it recently announced it would be trying to expand into the market in India directly. (Currently, it has a presence in India via Snapdeal.) The company has not indicated what it will do with the recent announcement of the new Indian regulations.

Recent Results and the Challenges Ahead

Amazon's Q4 earnings report disappointed many investors who were accustomed to the strong growth the company has enjoyed for several years. The company announced that its cloud computing growth had slowed, worrying some investors. The company's stock has fallen by 12% since the beginning of the year, but it still appears poised for new growth in 2016.

One plan reported by Die Welt in Germany is Amazon's plan to open a fulfillment warehouse in Berlin. This will allow Amazon to provide two-hour delivery services to its German Prime customers, greatly expanding its reach in that country. Previously, Amazon had used DHL Parcel, Germany's parcel delivery service. Taking over its own delivery services has also been seen with Amazon's leasing of planes. Overall, this should help Amazon cut down on shipping costs, where it has shown losses in the past.

Conclusion: Chance to Buy Amazon at a Discount

Although India's announced regulations could pose a hiccup in the short term for Amazon's Indian presence, the company will likely find a workaround. Its focus on cutting its shipping costs by taking over its own delivery services could be highly beneficial.

Amazon has historically shown a terrific growth pattern. With its share price down, it might be a good time for investors to consider buying. We recommend investors buy Amazon shares now while prices are lower as future growth is expected.