Amazon, the Winner in Appwars as Snapdeal and Flipkart Struggle
There has been a big transformation happening in the ecommerce sector. Amazon in India is adding millions of users on a monthly basis; on the other side,Flipkart is losing its customers at a faster pace.
In the past six months, Amazon has pulled in six million active users on the mobile app.In the meanwhile,Flipkart has lost approximately eight million users. The data from the famous App Annie shows that the total number of monthly users in Flipkart app platform fell from 90 million in the month of January to 82 million in the month of June and Amazon’s share increased from 59 million to 64 million. Snapdeal had another depressing story to tell as its active users dropped from 38 million in the month of January to 33 million in the month of June.
Earlier in the month of June, the CEO of Amazon Jeff Bezos wrote a 3 billion dollars check for India after the onlineretailer’s 2 billion dollars commitment in the year. Many analysts stated that this was a proper indication of Amazon for consolidating the business in India ahead of Alibaba, which also looks very strong. Jeff made the announcement at an event that was held in Washington, which was attended by the Indian Prime Minister Narendra Modi.
The e-store owners have been pushed to the back foot of late with the capital not flowing in as easily as it was about a year ago. The data that was retrieved from the Jefferies displays inflows into the online business in the 3 months to June were of the order of 528 million dollar, which is the least in the past 8 months. The fund raising in the first quarter was 50% less on a year-on-year chart, which thereby confirms that this trend has been reported for a lot of months now. It is a bigger challenge for big players who are planning to rise to over 100 million dollars.
Although the ecommerce giant is not short on funds, Amazon is not very happy with the recent government guidelines, which do not allow a single vendor to contribute more than 25 percent of the ecommerce revenues. In the case of Amazon, the cloudtail is supposedly contributing more than 25 percent.