The see-saw has now tilted in Amazon’s favour. In the Amazon versus Flipkart battle for supremacy, the latest developments see the American ecommerce giant achieving a greater sales figure than its arch rival. Sources in Amazon have said that there has been a 65-70% growth in the sales from the same quarter in 2016. This is a touch above Flipkart (with the joint efforts of the Flipkart-Myntra-Jabong triad), which stands at around 25%.
While Flipkart managed to race ahead during the Diwali sale season, Amazon has taken the lead for now.
Tactics for better sales and profitability
Both companies are trying to outdo each other’s performance. Some steps include:
- Exclusive smartphone deals both online and offline,
- Expanding their repertoire to include every conceivable vertical,
- Turning to private labels,
- Exploring artificial intelligence (Flipkart) to help sales,
- Entering food retail (Amazon),
- Buying out the competition (Flipkart with Myntra and Jabong and plans for Snapdeal and eBay in the pipeline), and
- Adding to its warehouses (Amazon).
Amazon’s measures that have yielded fruit
The US bellwether is going to town with its advertising and its extensive range of products, not to mention its exclusive club Prime. The company spokesperson said,
“Amazon’s growth is led by more shopping from our existing customers as well as new customer acquisition.”
What is Flipkart’s game plan?
“Flipkart’s consumer finance programs – No Cost EMI, Product Exchange, and Assured BuyBack Guarantee have been able to expand the frontiers of e-commerce in India.”
Flipkart has been seeking capital to tide over its recurring markdowns. It has managed to get $ 1 billion in March 2017 and is aiming for more.
Amazon versus Flipkart is going to be a continuous debate, with both companies neck to neck in the game. The question on everyone’s mind is, will the Indian online shopper pool be sufficient to fulfil both companies’ ambition?