Categories
Ecommerce

Flipkart and Amazon India sold items worth around $3,000,000,000 in a week

Festivals are a massive business opportunity in India, and like every year, e-commerce companies went all out to milk it this time, too.

During the six-day festive sales event between Sept. 29 and Oct. 4, online retailers in India collectively clocked a gross merchandise value (GMV) of around $3 billion (Rs19,000 crore), Bengaluru-based consulting firm Redseer said in a press release from Oct. 8. GMV is the total value for goods or services sold through a marketplace.

“Flipkart continued to lead the festive sales in GMV terms, with 60-62% standalone GMV share during sale event, and ~63% share if other group entities (Myntra and Jabong) are also included,” RedSeer noted. “Strong performance across categories including mobiles was the key reason for Flipkart leadership.” The company said more than 20 models sold over 100,0000 units each during the Big Billion Days 2019—a first for any event, it claimed. “We cannot comment on speculative reports that lack robust and credible methodology. During the Great Indian Festival, Amazon led with the highest share of transacting customers at 51%, order share of 42% and value share of 45% across all marketplaces in India according to Nielsen’s E-Analytics empaneled read of 190,000 digital users across 50+ cities,” an Amazon spokesperson told Quartz.

Flipkart’s glory run was “enabled by strong value prices, high EMIs adoption and diverse selection across categories, all marketed aggressively to reach customers widely,” RedSeer said. The share of transactions via affordability constructs such as EMIs, Flipkart Pay Later and Cardless Credit increased by 70% compared to last year.

Categories
Ecommerce

Amazon, Flipkart drive their festive sales

Amazon reported record revenue for their six-day India sales festivals as e-commerce catches on with buyers and sellers in smaller Indian towns, moving beyond the country’s urban, English-speaking population.

The American competitors have been dueling in India since Walmart cut a $16 billion deal for control of local pioneer Flipkart Online Services Pvt last year. Their latest sales — which Amazon calls the Great Indian Festival and Flipkart calls Big Billion Days — are a high-stakes battle that ran on the same days and concluded over the weekend.

Both focused on expanding their online commerce to smaller cities and rural areas, an enormous swath of the country known by its historic name of Bharat. Neither company gave specific revenue figures, though they claimed record activity.“This has been our biggest celebration ever, a digital Bharat festival,” said Amit Agarwal, Amazon’s India chief, during a telephone call from his Bangalore headquarters. “Over 65,000 sellers from 500 cities sold products.”

Millions of Indians are moving online thanks to inexpensive smartphones and some of the lowest wireless data rates in the world. That is boosting all kinds of internet businesses, from streaming video and online gaming to e-commerce and services.

“There is a big wave of consumers in Bharat shifting their offline spending to online during these sale days, and increasing the ticket size of their purchases,” said Satish Meena, a senior forecast analyst at Forrester Research Inc. “Online retailers have been efficiently getting their message about the discounts, the product assortment and affordable credit offerings to the internet users in small cities.”Flipkart said in a note that it recorded almost 50% growth in new customers compared with last year’s sale days, and a 100% increase in units sold to shoppers in small, so-called tier 3 cities.