Amazon and Flipkart see Rs 31,000 crore in festive sales but total falls short of expectation
today Nov 18, 2019
E-commerce giants Amazon and Flipkart’s combined sales in the recent festive sale season totalled Rs 31,000 crore ($4.3 million) but were less than analyst expectations which were $5 billion.
During the two-week festive sale season in October, Flipkart and Amazon collectively amassed Rs 31,000 crore, according to a report by Red Seer Consulting accessed by ET Bureau. Despite the high sales total, it fell short of the $5 billion sales analysts had predicted for the two businesses. However, both businesses publicly stated that they had exceeded expectations in sales.
The Red Seer report also stated that Flipkart had a 56% share of units shipped while Amazon was at 44%. Flipkart also had a higher price-per-order than Amazon with Flipkart shoppers spending on average Rs 1,976 per order and Amazon customers spending an average of Rs 1,461.
The report stated that Amazon had a better (lower) rate of order cancellations than Flipkart but Flipkart totalled 64% of combined gross sales. Amazon India had a higher net promoter score, bolstered by strong fashion and electronics sales, and both businesses performed similarly in metros.
“Unit sales were higher than gross sales due to slow growth in new smartphone users, wider selection in fashion and long-tail categories,” read the report.
Both Amazon and Flipkart are currently facing scrutiny by the Confederation of All India Traders which has launched a pan-India protest against the two businesses. Accusing them of predatory pricing, especially during the sale season, CAIT has requested the government investigate the businesses for foreign direct investment regulation violations.
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