Amazon Tops Indian E-Commerce Market In Web Traffic

Amazon (NASDAQ:AMZN) has been handling in a e-commerce marketplace in India given 2013, and has grown impressively in a final 3 years. It is a third largest e-commerce height in a country, after Flipkart and Snapdeal, in terms of Gross Merchandise Value (GMV). However, it has now overtaken these rivals in altogether web traffic, including both web and mobile.

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With an estimated stream marketplace distance of $38 billion, e-commerce in India is approaching to grow to about $120 billion by 2020, and this presents a massive growth event for Amazon. [1] It now has a marketplace share of about 15% in terms of GMV in India, though a latest web trade information suggests that it competence be next in grabbing share from a bigger rivals. Amazon’s new proclamation of an additional investment of $3 billion in India (taking a sum to $5 billion) is going to serve urge Amazon’s position in a marketplace deliberation a new account break faced by a rivals. (see Why Amazon Is Betting Big On India)

Indian e-retailers have been blazing a lot of money in a final few years to attract business and benefit marketplace share. However, their ability to lift serve collateral has diminished, with investors perfectionist a transparent highway map towards profitability. It was recently reported that both Flipkart and Snapdeal had been catastrophic in lifting supports during their seeking valuations of $15 billion and $6.5 billion, respectively. This could have been impacted by Morgan Stanley drastically lowering the value of a holding in Flipkart by 27% in Feb this year, valuing it during around $11 billion. ((Have Flipkart, Snapdeal strike a gratefulness wall?, Livemint, Apr 14 2016))

The new introduction of some new manners for e-commerce companies by a Indian government, including disallowing large discounts and rapacious pricing, has also shifted a industry’s concentration from “lowest pricing” towards peculiarity services including app and website experience, strange vs. feign products, palliate of payment, discerning delivery, available lapse and reinstate policies. [2] This again should assistance Amazon, deliberation a collateral distillate will be used to urge a services and business rather than blindly focusing on GMV and marketplace share, that has resulted in all of them stating large waste in a final dual years.amzn-10

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Notes:

  1. Ecommerce Landscape of India [2016], ASSOCHAM India, Feb 26 2016 [↩]
  2. Time to Bid Farewell to a Great E-Commerce Discount?, The Wire, Mar 30 2016 [↩]