A STUDY ON E-COMMERCE INDUSTRY WITH REFERENCE TO FLIPKART AND AMAZON

Abstract

India‟s e-commerce market, dominated by Flipkart Pvt.Ltd and Amazon.com Inc., can potentially go upto $150 billion by 2022, supported by rising incomes and a increase in internet users, according to a recent report. During the period, the size of India‟s middle-class is expected to grow to 540 million from 380 million in 2017, showed the report of software industry lobby group Nasscom and consulting firm PwC India. The e-commerce market was pegged at $36 billion last year. From 2027 India‟s population is set to overtake China‟s and the middle class will overtake that of United States, Europe and China. The household savings rates have also leapt. In the 8 years since 2025 they have almost tripled. people today have more disposable income and the spending power of the population has also increased. Seeing all this what I feel is that the market for online sale and purchase of goods/items offer customers with numerous benefits.

The services primarily competes with Amazon‟s Indian subsidiary, and the domestic rival Snapdeal. As of March 2017, flipkhart has held a 39.5% market share of Indian E-Commerce induatry. Flipkart is dominant in the sale of apparel, and was in close competition with amazon in the sale of electronics and mobile phones. Flipkart also owns PhonePe, a mobile payments service based on UPI.In August 2018, U.S based retail chain Walmart acquired 77% controlling stakes in Flipkart for US$16 billion, valuing it at $22 billion.

Flipkart was founded in October 2007 by Sachin Bansal and Binny Bansal, who both are alumni of Indian Institute of Technology Delhi and formerly worked with Amazon. The company in its initially stage focuses on sales of books Online by 2008 they were receiving 100 orders per day, In 2010 they acquired Bangalore Based social book discovery service weRead from lulu.com.

Flipkart has made many acquisitions related to digital distribution. It has its own online music store Flyte however this service was not a great success due to plenty of free streaming sites, and they had to shut down in june 2013. Flipkart has acquired online retailers of electronics and online fashion retailors also they partnered with Motorola mobility to be exclusive retailer for moto G and moto E phones also with Xiaomi and Micromax.