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Festive sales 2017: Performance of e-comm portals

Flipkart and Amazon, the biggest competitors in the e-commerce space, wrapped their respective, game-changing annual sales. Here is a quick look at what transpired in these five days.

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E-comm giants battle with festive sales

E-comm giants battle with festive sales

Flipkart ran the Big Billion Day from September 20 to September 25, with offers across all its categories. During the same time, that is September 21 to September 24, Amazon hosted the Great Indian Festival. RedSeer Consulting, a research and advisory firm focused on consumer internet market, found the total sales this year to be Rs 9000 crore in five days of the sale.

Magnitude of the sale

Magnitude of the sale

The total sales during the five days were Rs 9000 crore. The sales last year for the festive season were USD 1.05 billion. There was a year-on-year increase of 40 percent.The main reasons attributed to the increase is better awareness, better off, rs and better customer experience. This festive season recorded the highest number of online shoppers in the country.

Flipkart vs Amazon

Flipkart vs Amazon

According to a research done by RedSeer, Flipkart lead the total sales this year. Flipkart Group generate 2.3x the business of Amazon. Flipkart Group includes Myntra and Jabong as well. The main reason for this was the better brand recall for the company. Amazon’s market share during the festive season was down by 32 percent as compared to last year.

Expected cash burn

Expected cash burn

According to an analysis by RedSeer, the cash burn for the e-tailing industry as a whole is expected to reach upto USD 370-400 million this year (on an expected gross merchandise volume (GMV) of USD1.5-1.7 billion). For the last year, the cash burn was USD 200-250 million last year (on a gross GMV of USD 1.05 billion). This would be due to the increased supply chain expenses including payment cost, discounting spends leading to an overall increased cash burn.

Festive season through the last three years

Festive season through the last three years

In 2016, the overall GMV was 50 percent higher than that in 2015 during the same period. In 2016, the GMV levels were USD 210 million per day. The success in 2016 was attributed to better offers with much more exclusive offers and increased EMI option and buyback on high-value items. In 2016 as well Flipkart had 43 percent GMV share emerging as a leader during the sales.

What people bought?

What people bought?

In 2016, the highest sales were recorded by mobile phones category. The last year on an average 0.7 million units of mobile phones were sold each day (during the sale). In terms of fashion, on an average 2.4 million units were sold each day.