Amazon India beats Flipkart in gross sales, says Barclays

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Bengaluru, Nov 28: Amazon India surpassed Flipkart in gross sales by a wide margin in the year ended March 2018, says a report by investment bank Barclays. If the estimates are correct, it marks a turning point in Indian e-commerce.
Within five years of its entry into India, the US company appears to have beaten the local posterboy — now owned by Walmart — though the latter had a six-year headstart. Barclays says the two were neck and neck in 2016-17, but Amazon took a significant lead the following year. Amazon is estimated to have had gross sales of $7.5 billion in the year, compared to Flipkart’s $6.2 billion.
Barclays’ estimates do not include the fashion business Myntra-Jabong, which is part of the Flipkart group. But considering Myntra-Jabong is estimated now to be hitting a run rate of about $2 billion in gross sales, the difference between Amazon India and the Flipkart group last year may have been marginal.
The Barclays report says Amazon is expected to report gross sales of over $11 billion in the ongoing financial year, and Flipkart (excluding Myntra-Jabong) about $9 billion.
In terms of revenue though, Barclays says Flipkart is still ahead of Amazon, but indicates that the latter will soon catch up. “Flipkart continues to be bigger than Amazon in terms of revenue ($3.8 billion vs $3.2 billion), although Amazon is catching up quickly and continues to grow much faster (82% vs 47%),” the report said.
The revenue for e-commerce companies comes from the commissions they make on each transaction that happens on their platforms, as also from advertising on the platforms and the services they provide such as warehousing and logistics to merchants. Flipkart’s bigger revenue is said to be on account of a larger wholesale operation than Amazon’s.
Flipkart and Amazon have both been claiming market leadership. And continues to do so. A Flipkart spokesperson, when contacted by TOI on the Barclays report, said, “Flipkart remains an unquestioned leader and it has also been established by independent research houses which track the industry in India closely.” Amazon India said it could not comment on industry reports.