With every passing year, both companies Amazon and Flipkart have been extending their arms in digital payments, private labels, groceries, and more. However, Amazon Vs Flipkart, are aggressively expanding dominating the e-commerce Indian sector, regardless of whether it is fulfillment centers, logistics, or technology.
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A tough competition
With each year approaching the end, the eCommerce sector is keen to know who won the battle of Indian eCommerce, is it Amazon or Flipkart. Analysts such as Counterpoint Research, Redseer, and Barclays, stay busy analyzing this big question. Both are deep-pocketed players and emerge as close winners.
Amazon and Flipkart have a neck-to-neck run right from the time they have launched in India. The sales records are amazing and so are the fury business tactics, crazy discounts, and the so- called ‘Dhamaka’ offers. Yet Flipkart had a bet dry segment in the e-commerce and was not much behind Jabong and Myntra GMV, while Amazon was at $7.5Bn GMV. However, Flipkart entered the foray of smartphone sales and notched up revenue. There are companies in 3rd place and at distance. But, considering the e-commerce segment competition and business viewpoint it is conquered by Amazon and Flipkart. Most of the sellers available on Amazon and Flipkart but few of them are only available on Amazon. Amazon.in seller’s registration process is similar to flipkart.
Fierce rivalry
The e-commerce company in India has a fierce rivalry with Flipkart and Amazon over the retail online market. They have distinct advantages and the truth is who offers the best to convince the palate of the Indian consumer is a test.
Amazon has dominated the e-commerce market in America for years, though the ground in India is uncertain. The two Amazon former employees in 2007 founded Flipkart and it is now challenging the market share in India over Amazon. The e-commerce engine reveals Flipkart has over 80 + categories and 80 million products with registered users crossing 100 million. However, Amazon trumps Flipkart as it has in India 168 million product offerings.
As the shopping platforms online, both are trying to gain traction with the young population. In this run, they are nearly neck-to-neck pleasing the 1.3billion population numbering. Both companies have funneled dollars in billions into the delivery capacity and expanding infrastructure, believing to estimate by 2026 to reach $200 billion.
Foothold acquisitions
- Amazon is successful in customer pilfering and it does by offering low prices overs a few categories, knowingly impairing its revenues. In doing this, the Amazon India vice President announced it acquired twice the orders and can keep its biggest rivalry at a distance. However, Flipkart continues saying it has a 60 percent market share of Indian e-commerce, while analysts estimate it between 40-45%.
- Flipkart madein the past years a few high-profile acquisitions. It includes PhonePe, eBay India, and online retailers in fashion Jabong and Myntra, though acquiring Snapdeal the e-commerce engine fell away.
- On the other hand, Amazon relies less on acquisitions. It concentrates on local logistics companies as strategic partnerships to bolster business. Flipkart has sales coming from smaller cities and towns and this customer base stands to advantage to the Indian audience, while this advantage is not with Amazon.
- Giving a response, Amazon targets larger cities having metro bases and is localizing its strategy. It has sales from metro cities and using Amazon Prime, it generates loyalty. The Indian market is the fastest growing for Amazon Prime and it has grown already by 5 times the size nearly. It has succeeded as the Amazon Prime members have no delivery charges and the product delivery is fast. Taking the cultural nuances, Amazon has become an ‘everything store,’ that has tailored its strategy to meet the mobile transaction dominance and acknowledges the COD payments.
Regulatory Hurdles
Flipkart enjoys the benefit of the homegrown company that the legal constraints are fewer. The success of Amazon is impressive in comparison to its foray in 2013, a late start, and following the regulatory hurdles in a series.
After the direct investment announced by Prime Minister, Narendra Modi, the company is catching up with local competitors. It is taking telephone orders that Amazon motorbikes convey from sellers directly to customers the items. This has bolstered the success of the company matching Indian expectations of personalization.
The packaging compliance laws are stricter with new regulations and it remains a part of the e-commerce expansion. Both companies are making to mark dominance in the market and are responding broadly to the rising trends of smartphones and the internet among Indian consumers. However, the growing online market in India is selling profits, while the jury is unable to give out the e-tailer name that will be on the top this year.
Q and A
Q1. Are Amazon and Flipkart the same?
A: They both are e-commerce websites. Flipkart sells in India only as it is a local player. Amazon operates in all the major countries and is an international company.
Q2. Flipkart and Amazon who is better?
A: Flipkart is trusted the most and Amazon gives better experience, says Survey. The e-commerce homegrown Indian player Flipkart has trusted Indian brands, but Amazon’s user experience is better. Thus, both companies are trusted brands in India.
Q3. Is it profitable to sell on Flipkart?
A: Flipkart offers a profitable business if you wish to sell, provided: You should maintain product quality, packing, delivery, and customer support.
Q4. Flipkart or Amazon, who gives faster delivery?
A: Amazon has customer care offering good support, while Flipkart deliveries are fast. Amazon is catching up by offering cheaper goods and better collection. Though, Flipkart offers high- value goods better.
Q5. Who owns Flipkart and Amazon?
A: Walmart owns Flipkart and Jeff Bezos is the CEO and Founder of Amazon.
Conclusion/Summary
Big companies are fighting in India’s divided markets for a bigger share of the pie. They are aiming to ascertain tremendous growth and to establish properly. Amazon has a dynamic online platform as it has the biggest players on its side. While Flipkart is also carrying Walmart’s adroitness and clout on its shoulders paving its path of expansion into bigger business to create a wider footprint.
There are no actual numbers to give clarity right now. Though the difference may be minimal. There is no doubt that Flipkart stands high in tier II and III cities with its delivery network, while Amazon has its huge base of Prime subscribers in the metros.
