Amazon rewards customers after achieving highest traffic ranking

Editor | Sep 10, 2020

Analytics company, AppAnnie recently released data which stated that the ecommerce marketplace, Flipkart had topped the retail charts in India for app downloads over the past year. Paytm was placed 2nd, beating off Amazon who had to settle for the 3rd position.

Amazon celebrates

Last month there were reports stating that after the first few days of the festival sales, Amazon was catching up fast with Flipkart in terms of online traffic, although there were different conclusions highlighted from the various sources such as, AppAnnie, comScore, SimilarWeb and Alexa.

By the end of the month we heard that according to Internet analytics company comScore, Amazon had overtaken Flipkart in October with over 20 crore visitors compared to Flipkart’s 16.4 crore figure. Some may say this was expected, considering that Flipkart’s Big Billion Days sale was app-only.

On the basis of comScore data, Amazon’s founder and CEO Jeff Bezos wrote an open letter to Amazon customers stating that Amazon had become numero uno in India terms of online traffic. To thank them, Amazon offered its customers a Rs.200 discount on Monday.

Feeling the burn

While it was really nice of Amazon to reward and recognise its customers for helping it achieve the highest traffic ranking, we also have to ask if online marketplaces are simply satisfied to generate the most visitors to their respective sites? We have heard a lot about etailers being measured based on traffic hits and on Gross Merchandise Value, but when will we see actual results. While sales revenues are going up annually, heavy losses due to deep discounting is causing online marketplaces to feel the burn and putting them further away from the road to profitability. No pain, No gain as they say!

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