Geocommerce

The Indian Ecommerce landscape is dominated by two of the major players Amazon and Flipkart. They both corner a lions share of 85% in total ecommerce GMV. Amazon is also a world leader in Ecommerce while Flipkart is a home grown brand now owned by Walmart. As a seller it is important to understand the features, similarities and differences between both the platforms and devise a strategy to succeed in achieving your goals.

Introduction

Amazon- Founded in 1992 by Jeff Bezos, Amazon is regarded as a pioneer of Ecommerce industry worldwide. Today amazon operates in 19 countries with dedicated marketplaces for each region. It hold top position in almost all countries where it operates. It aims to the most customer centric company on earth.

Flipkart- Founded by Sachin Bansal & Binny Bansal in 2007 in Bengaluru, Flipkart is the poster boy of startup culture and pioneer on ecommerce in India. It is the largest marketplace in terms of GMV in India and is known for introducing the concept of cash on delivery and own logistics chain from first mile to last mile. Flipkart is now owned by US retail giant Walmart.

We will analyse current potential for sellers based on certain criteria

Product categories

Amazon- Top selling Product categories in amazon are all Home categories, Kitchen, Gardening, Tools & equipment, Electric appliances, ELectronics, Mobiles, electricals and general categories.

Flipkart- Flipkart Leads Fashion, Lifestyle, Electronics & Mobiles.

Geographical division

Amazon has a concentrated buyer base in Metros, Tier 1 & Tier 2 Cities while Flipkart dominates Tier 2, Tier 3 And small Towns.

Customer profile

Amazon-Majority of customer profile on amazon are above 30 years of age who prefer quality products over price. Amazon customers may be sometimes very demanding in terms of quality and service.

Flipkart- Buyer demography consists majorly of youngsters who prefer hi-fashion and are price sensitive. Their purchase frequency is higher compared to amazon but AOV is on a lower side.

Purchase behaviour

Amazon- Customers on amazon always prioritise quality over pricing , they tend to make an informed decision based on reviews and ratings. Buyers expect fast shipping and good customer service from brands.

Flipkart- Price sensitive buyer contributes major share of orders on Flipkart. They look for deals and discounts while making their purchase decision.

Both platforms cover almost all pincodes in India and have built huge trust among their customers. Its important for a seller to understand the customer behaviour before starting to build their business on these platforms.