It’s the end of the year and a performance report card is inevitable. IOS decided to take a look at how the big names have fared in 2016.
Flipkart, of course had its share in the spotlight with its acquisition of Jabong, and its achieving a record 15.5 million units sold (as against Amazon’s 15 million). Thanks to its swollen ranks, Flipkart has more app downloads and traffic than its foreign contender. According to a study by comScore, the Indian marketplace has 25% more visitors than Amazon.
Snapdeal spent considerably on rebranding (around Rs. 200 crores) to get more traction and to reach its competitors. It subsequently took austerity steps and a modification of its business model to save funds. The steps paid off, as the company witnessed a growth in its app downloads to 32 lakhs.
Amazon had a good year in terms of getting capital. The company got a booster of a massive Rs. 2010 crores from its US headquarters. In an intuitive move, the company has also armed its wholesale business with capital worth Rs. 160 crores. The company’s largest seller Cloudtail also witnessed a spike in its revenue by nearly four times. It has also widened its grocery business, Amazon Pantry to include 6 more cities.
Diwali sales – the biggest sale season of the year
Most etailers eagerly await the October sales period as it is the largest in India. All leading marketplaces outdid their earlier performances. Flipkart was the happiest, as it bagged the most number of sales. The company’s sales were six times more than the same period in 2014. Amazon saw a 2.7-time growth in its sale from last year, thanks to its paid loyalty program Prime. Snapdeal found its rebranding efforts pay off with gross sale crossing Rs. 500 to 600 crores in four days.
The hottest news of the year was the devaluation of the Rs. 500 and 1,000 notes. This naturally had an impact on ecommerce as well. Shopclues admitted that its sales were down, and Snapdeal noted a fall in its CoD orders.
Amazon said it wasn’t too worried about the impact on growth due to the move. However, market research company eMarketer devalued its projection for Indian ecommerce growth to 55.5% from its earlier figure of 75%.
Online sellers hope that the events of 2016 will be for the best, and that the new year will bring growth and prosperity for everyone. IOS wishes that 2017 will take Indian ecommerce to new heights!