E-commerce major Flipkart clocked the largest number of shoppers spending more than Rs 5,000 among the top five e-tailing platforms with a 29% share during January-March 2017, according to a research report by RedSeer Consulting. Since, Q3 2016 (July-September), Flipkart has seen the maximum number of big spenders shop on its site largely on back of its offering in high-value categories such as smartphones, consumer electronics and large appliances.
Amazon followed with 22% of shoppers total purchases on the platform billed above Rs 5,000 in Q1 2017. The gap in the high value transactions of the two leading horizontal players is due to the different areas of focus by the two companies. Unlike Flipkart, Amazon holds strong play in low-ticket items such as FMCG and daily supplies. In Q1 2017, Snapdeal followed with 16% high-spending shoppers, Jabong with 9% and Myntra with 5%.
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“High AOVs (average order value) are validation of investing best of customer on e-tailing portals. Going forward it should be a big lever for the growth of e-tailing industry,” Anil Kumar, CEO of RedSeer Consulting said.
In October-December quarter, the surge in the % of high value transactions for all the players was due to the flurry of festive season sales for Diwali and New Year during the period. Flipkart scaled the peak of 33% of shoppers clocking value of more than R5,000 followed by Amazon with 28% and Snapdeal with 23%.
Fashion companies Jabong and Myntra are also doing well. In July 2016, Myntra acquired Jabong in a $70-million-deal. According to the report, Myntra was ahead of Jabong with 5% share against Jabong’s 3% in July-September quarter post the acquisition. But in the following quarters — October-December and January-March sales at Jabong picked up with the company garnering more high value transaction during the period.