Press "Enter" to skip to content

Flipkart Loses Rs 3,000 Crore Due To Rivalry With Amazon

Flipkart’s battle in opposition to Amazon has caused the firm losses of more than Rs 3,200 Crore for this financial year. This is 70% more as compared to last year, as per regulatory filings of the 2 main bodies that mange the business in India—Flipkart Internet and Flipkart India.

The wholesale subsidiary of the online retailer, Flipkart India, witnessed losses increasing by almost 750% to more than Rs 2,000 Crore, while Flipkart Internet (the body that manages the online service) clocked losses of almost Rs 1,100 Crore. This is a drop of just below 30% in comparison to the last year. The losses by Flipkart India for last fiscal had come down to almost Rs 244 Crore, in comparison to Rs 545 Crore a year before. This increasing loss in the newest year is an indication of the aggressive discounting and marketing Flipkart has had to do to offer due to American competitor.

On a related note, earlier it was found that Flipkart trades over 50% of the handsets online, taking a larger lead over Amazon in the vital segment. Flipkart increased its share in the market of online handsets shipments in 2017 to 51%, from 44% the year ago, while market share of Amazon elevated slightly in 2017 to 33% from 31%, as per a report by a research firm. Smartphone volumes of Flipkart increase in 2017 by 43%, in comparison with Amazon’s increment of 33%, claimed the media report.

In general online handset shipments increased 23% yearly, quicker than the general handset market last year, with Amazon and Flipkart grabbing a joint 87% of the total value and 84% of the total volume. Chinese company Xiaomi’s mi.com is also forcefully pushing sales via its own website, now adding up to 10% to in general online handset shipments.