The year just keeps on getting better for Amazon. After just 3 months of becoming only the second company to hit the trillion dollar mark, Amazon India crossed Flipkart in terms of gross sales. Amazon has been growing tremendously and we really don’t think anybody could match them. A report by investment bank, Barclays, revealed that Amazon India became the largest retailer in the country.
This has happened for the first time ever that Amazon India has surpassed Flipkart in gross sales. Moreover, it has been by a significant margin as well. For the year ended in March 2018, the American company registered a staggering $7.5 billion in sales. On the other hand, Flipkart got only about $6.2 billion. However, this estimate does not include Flipkart’s subsidiaries Jabong and Myntra.
Both the e-commerce giants were neck-to-neck in FY 2016-17. However, Amazon took a giant leap. Within only 5 years of entering the Indian market, Amazon has beaten the homegrown startup. Walmart acquired a 77% stake in India’s fastest growing startup, earlier this year. However, things don’t seem to fall exactly in place for them. Both the founders, Sachin and Binny Bansal have also quit the company.
FY 2016 saw Amazon India reporting gross sales of $2.4 billion. This was lower when compared to Flipkart’s $3.7 billion. However, in FY 2017, Amazon took a marginal lead with $4.1 billion against Flipkart’s $4 billion. Moreover, Amazon India has a staggering growth rate. It is growing at 82% compared to Flipkart’s 47%. Amazon Prime plays a big role in this. There will be an expected 7 million Prime users by the end of the year. Moreover, Prime users tend to shop more than non-Prime users. These statistics show that India’s large e-commerce market is set to undergo major changes. Although, the number of people buying online is yet to match the numbers that US and China are showing.
Flipkart continues to be bigger than Amazon in terms of revenue ($3.8 billion vs $3.2 billion). They have a larger wholesale operation than the Seattle company. This is probably the result of Walmart pumping billions of dollars in Flipkart to expand its operations.
We don’t know who will come-out on top at the end, however, it is surely a win-win situation for Indian consumers.
By Abhishek Aggarwal