Well price trumps everything in every part of the world, for the average person. That said, there are millions of Indians who plunk down exorbitant prices for cars, TVs, Jewellery. However, what I've noticed is that very few Indians value time. They'll value convenience, only if the price for convenience falls in their perceived 'economical' bracket. For ex, maids. So any product or service that saves time in India is very hard to sell.

How exactly is this different from the US ?

You think people will rush to Amazon, if overnight becomes just as expensive as B&N ?

In Germany, book prices are fixed. Buying a book on Amazon costs exactly as much as buying it from the small shop at the corner. People still prefer Amazon and book shops are dying.

I see. Are book-stores far and in-between (why is it inconvenient ?).

No density of bookstores is going to be able to match ordering from inside your house.