Amazon and Flipkart raked in close to 90 per cent of the 8.3 billion dollars GMV this season.
Walmart-owned Flipkart Group has emerged as the prime e-commerce marketplace through the on the web festive sales amongst mid-October to mid-November 2020 with about 66 per cent share of the all round gross merchandise worth (GMV) worth $8.3 billion, according to a RedSeer report. Jeff Bezos Amazon’s India organization, on the other hand, cornered 34 per cent share. The festive month saw all round on the web sales up 65 per cent from the year-ago sales worth $5 billion and much more than the predicted $7 billion this festive season by the consultancy firm. Importantly, the two e-commerce businesses, Amazon and Flipkart, raked in close to 90 per cent of the $8.3 billion GMV, Mrigank Gutgutia, Director E-commerce, RedSeer Consulting told The Spuzz Online.
“Lot of customers were holding back on their online purchase due to Covid and potentially waiting for the right opportunity to spend while offline was not operating in a massive way. So, all that spending got transferred to the online channel. This was the general trend. The more specific trend was that Tier-II customers were much more willing to transact online heavily. This benefited Flipkart as it has always been targeting small-town customers,” mentioned Gutgutia.
Flipkart and Amazon didn’t instantly respond to requests for comment.
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The festive season saw 87 per cent development in the quantity of buyers to 88 million up from 47 million through final year’s sales. Of these 88 million, about 57 per cent came from Tier-II and beyond cities, according to the report. Among the prime categories, mobiles continued to dominate this year with 46 per cent share of the $8.3 billion sales vis-à-vis 46 per cent of $5 billion sales final season. Electronics & substantial appliances and style had been other major segments with a share of 29 per cent and 13 per cent respectively in this year’s sales. “Flipkart has done pretty well across the board and leading categories which is mobiles and fashion. They have also done well in large appliances. At an aggregate level they have served the needs of Tier-II customers well as they were the most important segment this year,” added Gutgutia.
While the quantity of shoppers jumped 1.85x this year to about 88 million from about 47 million final year, the GMV or sales per shopper was decreased by .9x to Rs 6,540 ($94) from Rs 7,450 ($106) through the mentioned period as much more worth obtaining buyers thronged the e-commerce marketplaces who generally devote lesser than their urban counterparts. “They had different shopping preferences to buy more value items compared to typical urban customers. This meant they weren’t shopping for more affordable items.”