Flipkart's sales during March clocked in at around Rs 3,200-3,300 crore, while rival Amazon managed to do just around Rs 2,400 crore in sales, according to a person with the knowledge who did not want to be named. The gap in terms of unit sales between the two companies was at around 15-20 per cent.
“Even though the gap in the number of units sold on both platforms isn’t that huge, Flipkart continues to hold a strong lead over Amazon in terms of GMV. This is because Flipkart continues to lead in the smartphone sector, which usually have a higher purchase value,” the person said.
Standalone sales for Flipkart’s platform clocked in at Rs 2,800 crore, slightly higher than Amazon, while the rest of the group companies Myntra, Jabong and eBay raked in around Rs 450 crore. From an annualised GMV run rate perspective Flipkart holds around a 25 per cent lead at $6 billion compared to Amazon’s $4.5 billion.
An Economic Times report on Thursday cited investors and analysts estimates who put Flipkart’s annualised GMV at $4 billion, but said that sources close to investor Tiger Global said that the company’s gross sales crosses $6 billion at the end of March 2017.
While Flipkart continues to have a strong lead over Amazon in India’s hotly contested $17 billion e-commerce market, it’s reliance on driving sales through high-cost smartphones could trip it. According to a Counterpoint report, Flipkart controls 57 per cent of the online smartphone market in the country, as opposed to Amazon’s 27 per cent.
“Amazon is building value in India by selling books, low value items to customers in tier two markets and through things like Prime. Flipkart continues to drive a large portion of its GMV from smartphones which can be disrupted very easily. It’s the same thing that happened to Snapdeal, look where they are now,” added the person.
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