Is <b>Amazon</b> ahead of Flipkart in gross sales? The jury's out | RetailTechPodcast

Is Amazon ahead of Flipkart in gross sales? The jury's out

Bengaluru: Some analysts have questioned the methodology used by investment bank Barclays to conclude that Amazon India generated significantly higher sales than Flipkart in the last financial year, sparking a fresh debate about who dominates India's $18 billion online retail market. In a report this week, Barclays said that Amazon recorded gross sales of $7.5 billion in the year ended 31 March 2018, compared with Flipkart's gross sales of $6.2 billion in the same year. The comparison between Flipkart's and Amazon's gross sales, as shown by Barclays, is questionable. For one, because of convoluted foreign investment rules in India, Flipkart and Amazon are structured in different ways so that sales of their legal entities cannot be compared directly. Barclays has made like-to-like comparisons between the B2B and B2C entities of Flipkart and Amazon, respectively, but these entities are not comparable partly as their commission rates and sales recognition techniques are different. In Amazon's case, one of the entities included by Barclays, is Amazon Pay, but the investment bank hasn't included the numbers of PhonePe-the payments arm of Flipkart that is bigger than Amazon Pay. "Our work, especially in the last two years, suggests that Flipkart is way ahead both in terms of revenue and market share, and has showcased that progress in our marquee events, including the Big Billion Days," a Flipkart spokeswoman said. Read more