This year's first big online sales by two ecommerce majors were especially different in terms of their sale claims. Amazon said it was able to secure almost double the number of sale orders in the 'Great India Sale' than its nearest competitor. Flipkart, meanwhile, said it captured 60-65 per cent of the market share during its three-day 'Republic Day' sale. Amazon's 'Great Indian Sale' started on January 21 and will end on Wednesday night, while Flipkart held its 'Republic Day Sale' from January 21-23.
Citing Kantar IMRB data, Amazon India Vice President (Category Management) Manish Tiwary said: "Amazon.in had the highest share of orders with 2X more orders than nearest competition" in the first three days of sale. Also, Amazon.in had nearly double the number of transacting customers over its nearest competitor, he said.
Smrithi Ravichandran, Senior Director at Flipkart, countered Amazon.in's statement saying Flipkart continues to maintain the lead as the largest e-commerce player in the country on the back of a stellar sale. "During the 3-days period, our share of the e-tail market would be between 60-65 per cent," she said.
Amazon is locked in an intense battle with SoftBank-backed Flipkart to grab the top spot in the ecommerce space. Both companies have pumped in billions of dollars in expanding infrastructure and delivery capabilities. Tiwary said Amazon acquired the highest number of new customers ever in one single event, outside of Diwali sales, with 85 per cent of the new customers coming in from tier II-III towns. He added that there had been a strong uptake across categories including smartphones, large appliances and apparel during its sale.
"Smartphones were the most popular category with a sharp increase of 6X over a normal day...Large appliances also grew over 4.5X," Tiwary said.
Homegrown e-commerce giant Flipkart on Monday lost an appeal against the Income-Tax Department over the categorisation of marketing expenditure and discounts as capex. The ruling was about capital spent by e-tailers on marketing through deep discounts. Ecommerce players in the country have been classifying this as marketing expenses and deducting it from revenue, leading to them posting losses and therefore not being liable to tax, it said.
With agency inputs