According to a recent report from Barclays Investment Bank, Amazon's total sales in India surpassed Flipkart, the local e-commerce giant, for the first time in the past year to March 2018.
If Barclays'estimates are correct, it marks a new turning point for India's e-commerce industry.
Five years after entering the Indian market, the American company beat local e-commerce giant Flipkart, although the latter developed in India six years earlier than Amazon. Flipkart is now a Wal-Mart company.
Barclays said that between 2016 and 2017, the two companies were on a par, but Amazon took the lead in the next year. In the past year to March 2018, Amazon's sales in India were estimated at $7.5 billion, compared with Flipkart's $6.2 billion in the same period.
Barclays estimates do not include Flipkart's Myntra-Jabong fashion business. The operating rate of Myntra-Jabong is about $2 billion. If we calculate the total sales of Myntra-Jabong, Amazon India and Flipkart remain the same in the past year up to March 2018.
Barclays reported that Amazon's Indian business is expected to generate more than $11 billion in sales in the new fiscal year, while Flipkart (excluding Myntra-Jabong) is likely to generate $9 billion in sales.
However, Barclays noted that Flipkart remains ahead of Amazon in terms of revenue, although the latter will soon catch up with the former.
The revenue sources of e-commerce companies include commissions they draw from every transaction that takes place on their platforms, advertisements on their platforms, and various services they provide to businesses, such as warehouse and logistics services. Flipkart's revenue is higher than Amazon's because its wholesale business is larger than Amazon's.
Flipkart and Amazon have long declared themselves market leaders. And they will do so in the near future, a Flipkart spokesman said.