In today’s life everyone has a hectic schedule. No one have enough time to go to the markets for shopping. So everyone prefers to buy things online. Here e-commerce plays a very crucial role. Shopping becomes easy for those who don’t have time to buy things from market. E-commerce is such a boon for online customers.
Flipkart and Amazon are two biggest example of E-commerce today. Every year, Sale is disclosed on almost every E-commerce web sites. Recently on Flipkart and Amazon sale was disclosed for 6 days. Sale started from 29, September 2019 and ended on 4, October 2019. Amazon’s sale was named as “Amazon Festive Sale” and Flipkart’s sale was named as “Big Billion Days”. This year these to e-commerce achieved a record of $ 3 billion (about 19000 crore) of Gross Merchandise Value (GMV) during the 6 days sale as per the report by consulting firm Redseer. It was expected to generate around 39000 crore revenue in a whole month from e-commerce but Flipkart and Amazon have generated 19000 crore in just 6 days. Sales grew 30 per cent year-on-year, up from $2.3 billion last year.
“The larger push has come from Bharat (non-metro) customers migrating to online shopping driven by the strong value provided from the online retailers across categories including mobiles, which have shown a strong surge during sale event despite having a relatively slow growing half year from January-June,” said Anil Kumar, Founder and CEO, RedSeer Consulting.
Amazon vs Flipkart:
According to RedSeer, Flipkart continued to lead with 60-62 per cent in GMV (Gross Merchandise Value) share during the sale and 63 per cent including group entities Myntra and Jabong; while Amazon’s share was pegged at 28-30 per cent and the rest by other e-commerce.
An Amazon spokesperson said: “We cannot comment on speculative reports that lack robust and credible methodology. During the Great Indian Festival (September 28-October 4), Amazon led with the highest share of transacting customers at 51 per cent, order share of 42 per cent and value share of 45 per cent across all marketplaces in India, according to Nielsen’s E-Analytics empanelled read of 190,000 digital users across 50 plus cities.”
“With orders from 99.4 per cent pin codes, over 65,000 sellers from 500 plus cities receiving orders in just five days, customers from over 15,000 pin codes joining Prime and over 88 per cent new customers coming from small towns, this event has been our biggest celebration ever,” the Amazon spokesperson said.
This is because, e-commerce contributes a miniscule 2 per cent of retail sales. This means that online shoppers have utilised the opportunity to fulfill their requirements with the deep discount deals and this trend will continue throughout the festival season sale period till end October, pointed out K.Vaitheeswaran, founder of Indiaplaza, the country’s first e-commerce company, and co-founder of Again Drinks.
In past few days, Analysts released a report saying Indian economy is unlikely to slip into a recession but probability of Global recession is about 40%. After having looked at the numbers of this e-commerce business, the probability of recession would be decreased.