E-commerce giants Amazon and Flipkart made a whooping revenue from their sales in FY21 at 49% and 32%, respectively, as millions of users opted to shop from them due to COVID. Let’s compare the two giants, Amazon Vs Flipkart, at different verticals. Let’s dive in to know Amazon vs Flipkart which is better in India?
Amazon VS Flipkart: How Ecommerce giants stack up
Amazon is the world’s largest online seller and a prominent cloud service provider.
Founded In: 2013
Headquarter- Hyderabad
Parent Co.- Amazon Inc.
Number of the seller- 850k+
Number of users- 100 Mn+
Revenue- $1.4 bn
Flipkart is an e-commerce company founded by Binny Bansal and Sachin Bansal in 2007. The company owns and operates an online shopping website in India.
Founded In: 2007 (Walmart acquired Flipkart in 2018)
Headquarter- Bengaluru
Parent Co.- Walmart Inc.
Number of the seller- 375k+
Number of users- 350 Mn+
Revenue- $4.6 bn
As we see every year, Amazon Vs Flipkart has been a tough competition for many years. Let us compare Amazon Vs Flipkart to determine the preferred marketplace for most online sellers in India and answer questions like – Amazon Vs Flipkart which is best for seller?
India’s eCommerce Overview
What do you think of the spending capacity of the average Indian consumer? Let’s dive into MAI’s unique consumer panel data for Amazon and Flipkart India; we estimate that the average spend is around USD 70 each month across both platforms for Indian consumers.
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The increase in sales during the October months for 2020 and 2021 corresponds to India’s festive season, whereby Amazon Vs Flipkart compete head-on for the best month-long sales season. Amazon has its “Great Indian Festival,” while Flipkart coins its significant October sales as the “Big Billion Days Sale.”
There was a massive spike in October 2021 last year as both rivals increased the duration of their sales during the festive months.
A report by IBEF stated that during the festive season in India, e-commerce sales reached US$ 4.6 billion in October 2021.
The first nationwide lockdowns in India can explain the sales decrease in April 2020. Yet online stores remained operational (logistics, however, were impacted), while offline stores were shut. Online spending peaked again in May 2020, after a sharp decrease in April.
Check out the comparison data
Amazon Vs Flipkart: Number of Premium Users
Amazon: The panel reveals that among Amazon users, 20% subscribe to their Prime service. We all are probably aware of Amazon Prime. It offers its members free delivery at a monthly subscription price. The suite includes:
- Prime Video
- Prime Music.
Flipkart: nearly 50% of its users are on their premium package. Amazon’s Prime equates to Flipkart Plus. Unlike Amazon Prime, a paid subscription, Flipkart Plus is an earned loyalty program that doesn’t cost any subscription fee. The perks include:
- Prioritized customer support.
- Gaining unique Flipkart Pay Later options.
- fast delivery
- Portioned benefits from ecosystem partners (across travel, OTT, F&B, lifestyle, and health and fitness).
Amazon Vs Flipkart: Delivery Fee and Shipment Days Comparison
Both competitors’ premium users enjoy lower delivery fees than regular users.
Yet, Amazon’s delivery fee for its Prime members is lower than Flipkart’s Plus. Noticeably, Flipkart has lowered its delivery fees and has kept them reduced since 2021.
The delivery time for primary users of both companies seems to be pretty much the same. However, Amazon Prime members enjoy marginally faster delivery times than Flipkart Plus members.
Amazon Vs Flipkart: Which Platform Exhibits Better User Retention?
Let’s observe any changes in spending patterns after the festive month-long October 2020 sales.
Looking at the data, the core members of both platforms, Amazon and Flipkart don’t seem to be too loyal to either of the two rivals. Amongst its primary users, Amazon exhibited a 35% retention rate between the two October festive months, 2021 vs. 2020, whereas, for Flipkart, our data reveals a 25% retention rate for the Walmart-backed e-commerce platform.
Contrast this to the premium members of both e-commerce companies. Amazon Prime and Flipkart Plus exhibited a 74% and 80% retention rate, respectively. This shows that the two rivals’ premium services help maintain a higher level of user retention.
The E-commerce Landscape in India
According to GlobalData’s estimate, India’s e-commerce market two-folded between 2017 and 2020 as more users are now moving online with increasing internet usage.
Internet penetration is not that high relative to its people, reaching roughly 45% of 1.37 billion people.
Thus, most sales are still offline due to the low internet penetration rate and the general inclination of Indian people to shop offline. That said, the e-commerce industry is still significant, thanks to the overall population size.
According to India Brand Equity Foundation (‘IBEF’), a Trust established by the Department of Commerce, India’s e-commerce market is expected to reach US$ 111 billion by 2024 and US$ 200 billion by 2026, great, isn’t it?!
Conclusion:
Amazon Vs Flipkart has been in a clash for years. They are both equally substantial and have the potential to pull strings toward their customers. For getting answers to questions like – Amazon Vs Flipkart which is cheaper? You got to compare the desired product on both sites, as prices vary according to the current offers, time of the year, and niche of the product.
You can always count on us, a top eCommerce Agency in India, for any assistance.
References-
- https://kr-asia.com/amazon-maintains-lead-over-flipkart-as-its-india-marketplace-revenue-surges-49-in-fy-2021
- https://blog.measurable.ai/2022/04/20/indian-e-commerce-war-amazon-vs-flipkart/
- https://www.indianretailer.com/article/multi-channel/eretail/How-small-companies-can-compete-with-Flipkart-and-Amazon.a6158/
- https://indianaffiliateprograms.com/battle-e-commerce-giants-amazon-india-vs-flipkart/
