It looks like Amazon‘s full court press into Indian eCommerce is paying off.
According to reports by Livemint, Flipkart seems on the verge of being displaced as India’s top eCommerce firm. In an experience that has become a bit common the world over, Amazon has swept into town and (as only a mentor/arch-rival can) disrupted Flipkart’s hold. Three years into operations in India, Amazon pushed past Flipkart in terms of gross sales for the month of July.
Flipkart reported gross sales or gross merchandise value (GMV) of less than ₹2,000 crore in July, while Amazon’s gross sales crept up above ₹2,000 crore, according to “people familiar with the companies’ numbers.” Gross sales measure the value of goods sold on the site and do not necessarily track to revenue.
Flipkart’s figures also do not include revenue at Myntra and Jabong — two of the larger fashion retailers it owns. Including Myntra and Jabong revenues, Flipkart is still comfortably ahead of Amazon.
But when it comes to eCommerce alone — both firms’ core business — Flipkart and Amazon are running in a close race at present. But “at present” is the operative concept here. July is only one month, and Flipkart is certainly not going down without a fight.
“We continue to have a significant lead over the competition on all important customer parameters, including sales. We are also the market leader in the biggest categories of eCommerce, including mobiles, fashion, home, electronics and appliances. Our sales are witnessing a steady growth, and in the recent months, we have significantly raised the bar of execution, speed of customer delivery and product quality,” said a Flipkart spokesperson in an email.
Can Amazon keep ahead of Flipkart? Hard to predict, and even if it can, it is far from clear that there can only be one winner in India’s fast-growing eCommerce market. But in a few short years, Amazon has gone from being the distant third player in Indian eCommerce and leapt into a fight for first place with Flipkart.
Certainly a race worth watching.