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Amazon Vs Flipkart: A comparison of the two giants

You might notice that a lot of times, whenever you talk about big e-commerce platforms, most people would agree that amongst the big names they think of when they hear online e-commerce sites would be ‘Amazon’, and ‘Flipkart’. But not only ordinary customers, but even sellers also have different opinions of each e-commerce giant, and why they would like to buy or sell from each. Let us look at why it is so.  

 For starts, let us compare the two.

 According to 42Inc, Amazon has overtaken Flipkart with $7.5 Billion in GMV, yet Flipkart continues to be bigger than Amazon in terms of revenue with $3.8 Billion, which is 19% higher than Amazon’s $3.2 Billion. With Flipkart now being a Walmart company, Amazon has lost its significant advantage of being a more global and spread-out company than Flipkart. Let us look at what anyone would choose out of the two, from both a customer’s perspective as well as a seller’s perspective.

 An e-commerce consumer’s perspective

First, let us look at it from a customer's perspective. 

1) Amazon has a friendlier user interface than that of Flipkart, therefore customers prefer to search on Amazon more. A good UI equates to better tracking of customers’ habits and better suggestions, helps to find products of the same brand, and shows more relevant items. 

2) Amazon Prime has also attracted a lot of customers since its launch. Almost 56% of its customers avail Prime membership annually, which has to a 31% rise in sales worldwide! Flipkart has seen a 50% hike in sales from the past year too, although it is restricted to India only. 

 3) Amazon has a faster delivery rate in its products when compared to Flipkart. The rate of delivery is further cut down to within a day or two if the customer is an Amazon Prime member. Flipkart also delivers its products quite fast but takes a little bit more time than Amazon.

4) Flipkart prefers advertising more bought brands and has seen tremendous sales on its annual sales days, that is, ‘Big Billion Day', and ‘Diwali Dhamaaka' sale days. Amazon, however, has a wider range of small scale to medium-scale sellers on its e-commerce platform. 

5) Flipkart has better customer care than Amazon. Hence more customers, especially in India prefer Flipkart to Amazon, even though Amazon takes lesser time to deliver its products. Many customers have described dissatisfaction when it came to returning faulty, damaged, or wrongly shipped products, and weren't too impressed by the helpline number either. Flipkart, on the other hand, seemed to be the fans favorite when it came to customer care, especially in India. 

From an e-commerce seller’s perspective:  

1) Amazon is technologically more advanced, and most of its processes are automated and makes it much easier to register and place your products. On the other hand, Flipkart has lesser efficiency. Even though there are automated processes, approvals are manually made. Perhaps Flipkart wants more authenticity, and better brands in their platform, or just yet to upgrade their interface. 

2) Amazon and Flipkart have very different approaches in terms of advertising for their target audience. Amazon expects that their customer would be a little more knowledgeable in terms of what brands to choose whereas Flipkart focuses more on the people who are a little bit less versed in that matter, and want to choose a lot of options, and see which sell the most, and are relatively cheaper and help people who are struggling to make ends meet. 

 3) On Flipkart, even though you invest in advertising, it is not as exclusively shown on Amazon. Amazon advertises these products at top of each category search, for example, if we were to search natural honey:

 

 You can quite clearly see that Amazon first places the product whose brands have opted for that type of advertisement, whereas Flipkart chooses to still display it in top searches, but not as bluntly as Amazon. You can notice that in the Flipkart picture, the fourth honey jar is an ad, by the subtle banner on the right corner of the post. Amazon chooses to put out that better-paid advertisements get better allotment whereas Flipkart tells us that although they will put ads, it won’t be as obvious and better placed. Each site has its own reasons for doing so, as Amazon caters to customers around the globe, whereas Flipkart is more India oriented, so there are bound to some changes in their websites.

 4) Although there are different types of advertisements on Amazon, they are much more expensive than Flipkart, or any other e-commerce platform in that matter.

  5) Finally, it’s quite obvious that Amazon has more customers buying products than Flipkart.

We have seen in the previous blog about market visibility and its vital role to help your product succeed. Therefore, it is advisable to either devote a team in your company to really search into depth on how to place products on these ‘other’ sites and research on the various advertisement methods offered, and research on the best way to get you product sold, else you could simplify your work by taking help from other mediums that could help you like e-commerce solution providing companies, hiring specialists in digital marketing, etc.  

 What is Selvitate?

Selvitate is an end-to-end e-commerce solution that helps you start selling online.

NSRCEL, Indian Institute of Management

Bangalore - 560076

Email: info@selvitate.com

Phone: +91 9738132356

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