E-commerce battle: Amazon may be surging ahead, but Flipkart shows why it's king of sales

In the past few quarters, both Amazon and Flipkart are almost selling same number of items, but the US e-commerce major continues to lag behind Flipkart on value terms

FP Staff April 27, 2017 13:46:12 IST
E-commerce battle: Amazon may be surging ahead, but Flipkart shows why it's king of sales

In the last couple of years, US-based etail giant Amazon made rapid strides in the country's fast-growing e-commerce market, and has been inching close to displace Flipkart from its number one position. However, the battle to grab the top slot could still be some time away for Amazon.

In the past few quarters, both Amazon and Flipkart were almost selling same number of items, but the US e-commerce major continues to lag behind Flipkart on value terms.

Last month, Amazon clocked average daily shipments of around 4.5 lakh items where as Flipkart's average daily volumes stood at 5 lakh items, The Economic Times report said. On the other hand, the New Delhi-based Snapdeal witnessed disappointing volumes as average daily shipments slipped to 30,000 per day compared to high of 1.5 lakh daily volumes in the same month last year.

Ecommerce battle Amazon may be surging ahead but Flipkart shows why its king of sales

Reuters

"Flipkart continues to remain ahead of Amazon India in terms of gross sales," The ET report said.

The company's COO Nitin Seth also said that the group's GMV jumped more than 45 percent in March.

The gross merchandise value of the Bengaluru-headquartered Flipkart rose over $4 billion, while some estimates put the figure at $6 billion at the end of last month. In comparison, Amazon's GMV in the last fiscal is likely to be over $3.2 billion, the report says.

For Flipkart, strong sales was led by catagories such as fashion. The company, which owns fashion portals Myntra and Jabong, claims to have a marketshare of 65-70 percent. Revival in smartphone sales after sluggish period in previous two years boosted overall GMV. In case of Amazon, the company's sales volume came on the back of focus on daily essentials of FMCG products, which has boosted volume growth over past 12 months.

Grocery will drive this rivalry deeper in 2017 as Flipkart is also looking to enter this space and is likely to drive volume growth, the ET report added.

Last year, both Amazon and Flipkart were engaged in a stiff battle during the festive offers. During Amazon's festive offer between 1-5 October, the Jeff Bezos firm claimed to have shipped 15 million units, three times bigger than last year's sales.

The US etail giant also claimed that there was a five-fold growth in number of new customers with about 70 percent of these new additions coming from tier II and III towns.

Similarly, Flipkart said the company recorded its highest-ever single day sales and sold products worth Rs 1,400 crore during its Big Billion Days sales offer.

Currently, the country's e-commerce market is witnessing consolidation, with Snapdeal, the third-largest online marketplace firm few months back, being put on sale. Over the past one month, several media reports suggested that Snapdeal's largest shareholder SoftBank is pushing hared to get other major shareholders, including founders Kunal Bahl and Rohit Bansal, on board to sell the company to Flipkart.

Snapdeal's digital payments arm FreeCharge is also up for grabs, and both Paytm and Flipkart are looking to acquire it to ramp up their payments business.

With the imminent sale of Snapdeal round the corner, battle for third position in the e-commerce space is being fought between Alibaba-backed Paytm Mall and Shop-Clues.

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