Flipkart, India’s largest online retailer managed to outpace Amazon India on the gross value of goods sold in the market even when the latter sold almost equal number of items sold by the former.
Flipkart managed to outpace Amazon India on the gross value of goods sold in the market even when the latter sold an almost equal number of items sold by the former.
Flipkart, backed by Tiger Global, by the end of March 2017 clocked gross sales of USD 6 billion. However, as far as gross merchandise value (GMV) is concerned – GMV is a measure of the total value of all the products sold – it clocked northwards of USD 4 billion, compared to USD 3.2 billion clocked by Amazon for the same period of time. Online retailers generally tend to earn 5-15 percent commission on each item sold based upon the product’s category.
Indian e-commerce market, the fastest-growing market in the world, at present is witnessing almost riotous changes, with Snapdeal slipping to fifth place from the third spot it enjoyed as recently as June 2016. Paytm Mall backed by Alibaba and Shopclues are fighting for the third position, according to an ET report.
While fifth-placed Snapdeal’s volume dwindled down to 30,000 shipments per day in March 2017 from the highs of 1.5 shipments per day in March 2016, Flipkart clocked an average of 5 lakh shipments every day. Amazon managed to come a very close second with an average of 4.5 lakh shipments, says the report.
Shipments represent a retailer’s total orders processed and dispatch, including returns. Flipkart managed to hold the top spot, ahead of Amazon India, sources told the newspaper.
The online retail market is currently witnessing intense competition as players battle it out with each other to gobble up lion’s share of India’s USD 16 billion online retail industry. While companies are leaving no stone unturned to grow organically, the market is also bustling with talks of buyouts making rounds. The most talked about being Flipkart’s proposed buyout of Snapdeal.
In a separate instance, both Paytm and Flipkart are looking to buy FreeCharge, a digital payments arm, belonging to Delhi-based Snapdeal.
Market research firms like Red-Seer Consulting and Alvarez & Marsal calculates total items sold by all the online players at 100-110 million. And if one is to go by what senior executives’ and investors’ expect i.e. a growth of more than 15-20 percent one can expect to see some really exciting times lying ahead for e-commerce in India.