The eclipse of Snapdeal seems to have benefited homegrown e-commerce firm Flipkart more than its rival, US-based Amazon India. As per data sourced from market research firm KalaGato, while Amazon India remains the leader in terms of market share in the online shopping space, its growth declined by 1.2 percentage points to 54.8% during the September-December period of calendar 2017, compared to the same period last year. However, Flipkart saw its market share increasing by about 10 percentage points during the same period. This, analysts say, could be because the customers who regularly shopped on Snapdeal may have moved more towards Flipkart than Amazon. A reason could be that both Snapdeal and Flipkart retailed more of electronics, mobile phones and appliances, which have larger traction on online platforms.
Snapdeal’s market share declined to 3.8% during September-December 2017 compared to 12.8% during the same period in 2016. However, expect a fiercer competition in the days to come, as Amazon has also increasingly started retailing electronics, mobile phones and appliances. An Amazon spokesperson said, “In just a little over four years, customer have trusted Amazon.
We remain focused on the long-term.” While Amazon commands the leadership position in terms of market share, as far as average order value goes, Flipkart continues to maintain its lead. During September-December 2016, the latter’s average order value stood at Rs 2,574 crore, which climbed to Rs 3,133 crore in September-December 2017. In comparison, Amazon’s average order value moved from Rs 1,738 crore during September-December 2016 to Rs 2,058 crore in the same period of 2017.