The festive season sale on two of India's biggest e-commerce platforms, Flipkart and Amazon, saw both the companies claim market supremacy over a space that is estimated to surpass $100 billion mark by 2020 according to Nasscom.
Amazon claims this year's festive sale saw more than half of online shoppers in India shop on their platform, according to a survey by IMRB of 50,000 online consumers across 300 cities. "The great Indian festival 2018 was our biggest celebration ever with more than half of online Indian shoppers choosing to buy on Amazon.in, making it the most visited and transacted marketplace in India," said Amit Agarwal, SVP & country head, Amazon India.
"With the Prime membership seeing 2x growth and 81 per cent repeat customers on the platform, we realise that this is merely day 1 for e-commerce in India and we will continue to invest in transforming how India buys and sells" he added.
Amazon also said that over 89 per cent of their new customers were from tier 2 and below cities and more than 80 per cent of the new customers, who availed free first shipping, were from that segment indicating not only customer acquisition but also enhancing reach this year.
On the other hand, with Walmart in the picture this year, the Big Billion Day sale turned out to be a record of sorts for Flipkart, giving it an early edge over Amazon. Flipkart accounted for more than half of GMV for the entire industry during the first leg of the festive sale in early October. Between Flipkart and Amazon, the share was 62-38, according to Redseer Consulting, a research and advisory firm.
The festive season sale is an annual showdown between the two, which lasts for over a month, starting around Dussehra till the end of Diwali. While Flipkart's flagship 'The Big Billion Day' sales marks the beginning of the festive sale for the company, Amazon runs 'Great Indian Festival' sale in 3 tranches with sale dates coinciding with each other.
Both the companies generate a significant portion of their revenues from these sales and also burn much of their cash on huge discounts that are rolled out to the customers. Even as the claims by both the companies indicate a far significant revenues coming in this year from these sales, the actual GMV or Gross Merchandise Value done is not yet known.