E-commerce is one of the largest growing markets of this decade. India have also been a great platform for E-commerce companies like Amazon and Flipkart who have stabled their 10 % component in global volume in India only. Flipkart have also stepped up with merging in Walmart so Flipkart is now a Walmart company.
Both companies have started involving in other opportunities like fruits & vegetables supply, online payment gateway portal and many more. It is a clear picture that, both companies have a keen eye on Indian ecommerce sector.
However, the financial numbers have been so close for both companies in 2018. While Amazon been ahead in gross volume with $7.5 Bn. Whereas Flipkart was also near the wining line, with line-up of its subsidiaries companies merchandise volume.
The trade analysts such as Barclays, Counterpoint Research have been continuously working to analyse which company have succeed in winning E-commerce battle in India.
To understand who is the better, let’s understand their business outcomes v/s their data metrics
Revenue
As per financials submitted by Flipkart of India operations, it looks like that Flipkart goes extra miles in making ahead volume against Amazon ($3.8 Bn vs $3.2 Bn). Amazon is little bit struggling with some operational losses to set the venture in many areas and as per the available data base it comes out that its operating losses could be in the $1.5 Bn apprx. for the year ending January 2020. However, Amazon is finding more business opportunities in Indian market and its target to increase the investment by 9 % in next calendar area.
Special occasion sales
On special days, when India gets in to the festive mood, mostly survey runner companies have confirmed that Flipkart have closed the numbers for more than a half of the volume of the entire ecommerce industry and the major contribution was of mobile phones and fashion apparels sale.
Electronic sales
India has over 350 Million smartphone users and 430 Million internet users, therefore the ecommerce portals have remarked a huge 52% Yearly growth in sales volumes and contributed to half of the overall sales in the country, as per the data base of one of the biggest analyst company like Barclays.
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Pillars of Indian E-Commerce industry
It’s a false statement that Flipkart and Amazon both are stood like a pillar for Indian commerce industry. In India people search the products mostly on these two portals only. Every age customer is familiar about these two organizations. Hence, these organizations are expected to grow from $14-18 Billion in 2017 to $35-40 Billion in 2020. So, the users will also get doubled by the year 2020.
If you decide to buy a shirt, then you look for the nearest shop, you start your bike or car, reach to that shop, sometimes its rain outside or extremely hot sunny day or you are health is not supporting for shopping so you simply decide to reject the plan. Now the same shirt you find on e-commerce portal through your mobile device and with easy payment method, quick delivery & heavy festive discount, then, you would not hesitate to buy it. That is why Flipkart and Amazon have been so famous amongst Indians. The companies provide heavy range of varieties with heavy discounted prices and keep on adding many customers in their cart. They are not going to stop, as they are coming with more options, stocks etc. to wow their customers to capture the market.
Walmart must have been keeping an eye on Indian market and financial numbers of Flipkart from a long time, that is why Walmart grabbed the deal at the right time to sail the boat in main stream. Now, Walmart will exercise its own rules to grip Indian market. Walmart knows it very well, that, there are more boats in the stream like Amazon and specially Paytm mall who have just started its E-commerce business with the support of Chinese company. Amazon India is investing huge in country despite of making operational losses, and Paytm may be just trying to understand the market.
There will be no wonder if Amazon India or Flipkart both would love to enter travelling business like hotel, flight booking.
In the battle of course, Flipkart looks better in terms of understanding the expectation of Indian customers, but Amazon is also nevertheless a worldwide e-commerce brand. These two organizations will also find themselves running shoulder to shoulder to reach at finishing line and would have to deal with other new born companies like Paytm mall. But the winner would be who wins the heart of Indians by throwing mouth-watering deals specially in festive time.
As per the data base from Barclays, the maximum sale has been recorded only in festive season like bumper Diwali. During Diwali season, Indians go crazy to buy new clothes, shoes, electronics, and many more. So, it’s important for any e-commerce company to apply the right strategy to click maximum sale in this period. Also, to being a winner or be ahead in race, whether its Flipkart or Amazon India, one would have to come up with more products to be popular amongst customers. Like, if a customer opens a Flipkart to order a mobile phone for a family member, then same customer would love to buy a ticket of flight from the same window to go home in Diwali.
Paytm is quite popular in booking flight tickets and paying utility bills, now if Paytm mall throws attractive product buy deals to the customers, then customers might like to prefer one window for all solutions. It’s important to consider the point that sometimes small fish can make you uncomfortable in the pond.
To summarise, Flipkart is pocket friendly, however people believe more in Amazon India from quality perspective. Flipkart take little extra time to respond back on exchanged items related queries, however, Amazon India reacts speedily to respond back on exchange related queries.
Whatever the case in this calendar year 2019, these two close rivals Amazon and Flipkart are likely to continue their marathon race.
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