Jeff Bezos-led Amazon has claimed that it has left local rival Flipkart behind to become the leader in online retail space. The e-commerce behemoth claims to have 44 per cent customer share and 42 per cent order share on an overall market-base level.
Amazon also claims to have grown 50 per cent faster than its competitors. According to the marketing firm KANTAR IMRB, its traffic is 200 per cent more than rivals, reported Businessline in December last year.
The company’s top official mentions that it expects export volume to outnumber Indian marketplace by 2023. Currently, 25,000 sellers from India sell globally through Amazon Global Selling programme. They sell about 75 million SKUs leveraging aforementioned programme across 10 geographies.
The company emphasizes that order shares are more important metrics than GMS (Gross Merchandise Sales).
According to Amit Agarwal, Senior Vice-President, and Country Manager Amazon India, Amazon Prime has contributed overwhelmingly in fueling its sales in the country. He says that 40 per cent of the company’s India volume is driven by Amazon Prime subscribers.
Industry estimates indicate that there are about 7 million Amazon Prime users in the country. Majority of subscribers have paid an introductory yearly fee of Rs 499 (now priced at Rs 999) to access free and fast shipping, premium video content, exclusive offers, among other services.
Importantly, India accounted for the largest Prime subscriber base in the past one year as compared to other geographies. Consumables (FMCG and food) contributes maximum sales volume followed by fashion and electronics.
During the festive season sale last year, Flipkart had reportedly won the overall season with 50 per cent market share while market share of the US-headquartered company pegged at about 35 per cent.
The e-commerce marketplace has been able to offer superior customer experience through its logistics capability. At present, it has 41 warehouses across 13 states in the country.