The festivities are just a few days away and there’s a rat-race among the e-tailer already. In fact, in the mid of all the crazy promotions (every second advertisement on TV is an e-commerce brand) under the October heat it’s result time for the companies. It would be fair enough to put it in this manner- it is the end of the first round (pre-festive sales) and the figures are out in the open.
The best thing to happen is the industry is the rise in percentage of online shoppers from tier-II cities-46% of the total rooted from these regions, this is much higher than the last year.
Now to the real game; of the 3 brands-Flipkart clearly emerged as the winner with 69% of the business for the month. Amazon stood second with 46% and for Snapdeal it seems like there’s a bit of catching up to done as it closed its month with a decent 26% share.
It looks like Flipkart will run away with the show this year too yet it has to revise its market share which is more likely to decline this time; thanks to the bottle neck contest and the peaking promotions from all the players. Yet the brand is enjoying the edge at least for now with a variety of products under widespread categories and with largest number of sellers.
The average size of ticket for the month was ranged between 1,000 to 5,000 INR; however according to industry experts this is ought to increase once the festival actually starts.
Clothing, shoes and home appliances (especially kitchen products) are pointed to be the most on-demand segments.
Gender wise the e-commerce companies in India feel there’s a lot to be achieved as only 11% of the online buyers in India are women compared to men who make up the remaining. Online sellers are working on special business strategies to pull in more number of female buyers.
Talking of the region wise business, as mentioned it is complete flip from what was expected. The II-tier cities have taken the lead and left the usual toppers Mumbai, Bangalore and Delhi behind. They together have 46% of the business which is a majority in comparison to Mumbai and Delhi which held 14% and Bangalore which posted 13% share.
Ecommerce in India has grown 34% (CAGR)since 2009 and is expected to cross $22 bn by the end of 2015
Stiff competition isn’t the only big issue that the companies have to tide through. There are several other aspects that may go wrong or won’t turn up as they are expected to be. Time consumed for delivery is probably the biggest hurdle the e-tailers are facing. It has clearly shown on the report as it has emerged as the biggest issue of all; 31% of the replies in the survey faced a delivery issue-most of them exceeding the promises duration.
High delivery charges was the second most reported complaint followed by payment gateway issues, desired offers not found, better offers on other websites, slowing loading of the website, unclear display of offers and sizes not available.