Amazon beats Flipkart and becomes India's largest online retailer in terms of gross sales

Amazon India surpbaded Flipkart's gross sales for the first time, according to Barclays, as the online retail war intensified with Walmart's acquisition of the local retailer.

Amazon, based in Seattle, has benefited greatly from 7.5 € Gross sales were in billions of dollars during the financial year closed in March, against 6.2 billion dollars for Flipkart, said Barclays in a report reviewed by BloombergQuint. This figure excludes the gross value of the merchandise of the subsidiaries of Flipkart, Myntra and Jabong.

The Indian e-commerce market is the next big battleground where online shoppers are expected to more than double, from 80 to 90 million in 2017 to 180 to 200 million. by 2020, said Barclays. The size of the market is also expected to double to $ 40 billion to $ 45 billion over this period, according to the report, with apparel and consumer electronics accounting for most of the growth.

Walmart seized the opportunity when it bought 77 percent of a $ 16 billion stake in Flipkart, the largest acquisition for the world's largest brick and mortar retailer. It's against Amazon that has already invested nearly $ 5 billion in its business in India.

Amazon's gross sales are expected to reach $ 11.2 billion in the current fiscal year and end in March, according to Barclays. That's 30% more than the estimated $ 8.7 billion for Flipkart.

BloombergQuint is waiting for answers from Amazon and Flipkart to queries sent by email. business figure, according to the report. The business turnover of the local e-commerce company had risen to $ 3.8 billion over the last fiscal year, compared with $ 3.2 billion for Indian India. said.

Wholesale is an area in which Amazon is late on Flipkart. The gross value of US retail wholesalers was approximately $ 1.9 billion in fiscal 2010, the report said. That's about half of the Flipkart. Still, Amazon has grown significantly since 2016 and added more dollars than Flipkart's B2B operations, Barclays said.

Increased losses

The battle for supremacy continues to bleed online retailers in India. Barclays estimated that Amazon and Flipkart's combined losses would be close to $ 3 billion for the year ending March 2019; Amazon is expected to contribute $ 1.8 billion and Flipkart $ 1.3 billion.