Claims by ecommerce giants Amazon and Flipkart after festive season sale point towards the same trend. Sellers making it big.
While Amazon claims that its Great India Sale saw 600 sellers clock sales of over INR 1 Cr, Flipkart said that the number of crorepati sellers on the platform went up by 1.5x.
Elaborating on its sale (which concludes on Nov 13), Amazon said 90% of its new users came from small towns during the sale period, with three times as many users signing up for its Prime loyalty programme compared to normal business days. Three out of five Prime subscribers came from outside the metro cities.
The company further revealed that during the sale, half of all purchases were done through credit and debit cards of partner banks to avail the 10% discounts offer. It further said that it saw over INR 2,700 Cr of credit being disbursed through its partners, with over 140,000 new-to-credit customers availing of its many credit schemes.
Flipkart had earlier said that more than 3 Lakh sellers and artisans had participated in the sale and the discounts offered was up to INR 10K Cr in the six days. It had also added that the number of Lakhpati sellers witnessed a 1.7x jump.
“We added lakhs of direct and indirect jobs and enabled tens of thousands of local stores and service partners across 350 cities who witnessed their most successful business month of the year,” Manish Tiwary, Vice President at Amazon India told ET.
Last year, Flipkart and Amazon recorded a combined gross merchandise value of $3 Bn or INR 19K Cr in India during their respective festive season sales, despite the economic slowdown. Though both these platforms made up for almost 90% of the overall ecommerce sales during the sale, but Flipkart overtook Amazon with nearly 64% share of the overall sales.
A Redseer report suggests that ecommerce sales may also touch nearly $4 Bn in the upcoming festive season sale. The shoppers are also expected to increase by 70% compared to last year. Almost 40-50% of the shoppers are expected to come from Tier II and beyond cities, 20-25% from Tier II, and nearly 30-35% from metro cities.