India’s top two web retailers Flipkart and Amazon clocked combined sales of Rs 31,000 crores during the festival period in October, says Red-Seer Consulting. While Flipkart led with a 64 per cent share of the combined gross sales Amazon continued to fare higher in net promoter score. Flipkart’s share in terms of gross units shipped stood at 56 per cent while Amazon’s share was 44 per cent. Better availability and variety of electronics and fashion items improved net promoter score for Amazon, while Flipkart led on the back of strong performance in smaller cities. Customer cancellations were lower on Amazon, but Flipkart’s reach and brand recall in smaller towns and cities was better.
Both companies are close to each other in the metros, with Amazon leading by a percentage point. The festive sale period helps e-tailers shore up sales as this is when consumers plan large-value purchases and are also traditionally more open to spending on new items. Online retail is wooing consumers outside the big cities. E-commerce companies are getting growth from locations where traditional retail presence doesn’t even exist. However metro cities hold the bulk of high-value consumers, and therefore higher margins remain a concern. Units sold increased 60 per cent over last year while the average selling price decreased by 23 per cent.