The year-end reports have come and it is a big day for country’s two most impressive and customer-driven e-commerce websites- the homegrown star, Flipkart, and, the multinational giant’s Indian arm, Amazon IN.
According to the report-
Indian wholesale unit of Flipkart’s biggest competitor, Amazon, has reported up to 2,700x increase in turnover from $410.5K (INR 2.63 Cr) in FY16 to $1 Bn (INR 7,047 Cr) in the last fiscal. During FY15, Amazon Wholesale India clocked a net turnover of around $1.03 Mn (INR 6.6 Cr).
And according to the filings with the Registrar of Companies (RoC):
The Indian unit of the global e-commerce titan reported over 105% growth in revenue in FY17.
Amazon Seller Services reported a 41% rise in earnings to $485.4 Mn (INR 3,128 Cr) during the stated period. Amazon Seller Services currently scores through commissions, advertisements and shipping fees.
The global retail giant’s Indian subsidiary reportedly claimed a Y-o-Y growth of 66% in gross sales volume for the six month period between April-September in 2017, which is 1.5 times bigger than Flipkart’s GMV sales volume for the same period.
Besides, Amazon India also recorded a 67% increase in total sales by volume and 72% by estimation for the period between July-September, vied for the same period former year.
Jeff Bezos-led Amazon continues to be bullish on its Indian subsidiary, as evident from its recent announcement of doubling its authorised capital to $4.74 Bn (INR 31,000 Cr), matching its earlier capital commitment of $5 Bn made in June last year last month.
As per a recent Morgan Stanley report-
The Indian e-commerce market is poised to touch the $200 Bn mark by 2027. Although there is enough room in the e-commerce sector to accommodate two big players like Amazon and Flipkart, it is likely that one will trump the other in the long run. As is apparent from Flipkart India’s upward growth trajectory, the competition between the two heavily-funded companies will be akin to an intense game of chess!
So, conclusively, if we talk about rankings, Amazon is still marginally catching up with Flipkart in terms of customer base and rank acquisitions, but if we consider on year-wise performance and annual figures, it has bullied the homegrown e-commerce giant and has raised as the winner this year for sure.
