Amazon Gross Sales Grew 66% In April-September

Sales is a numbers game and e-tail majors, Amazon and Flipkart, have been disputing each other’s claims about being the numero uno in India.

Amazon India has said it posted 66% growth in its gross merchandise sales (GMS) between April to September. GMS indicates the sales made on an online marketplace out of which ecommerce companies draw a cut. Amazon’s quarterly sales growth for the six-month period is higher than the Flipkart numbers made public by Naspers, one of the largest investors in the home-grown e-tailer.

Amazon’s claim to having grown at a faster clip does not include the other Flipkart group companies like Myntra and Jabong, where Flipkart has a clear leadership. Amazon India grew 75% in overall units sold during this period.

Amazon India spokesperson said “We are clearly growing faster than industry peers who are posting growth at about 20-25%. Authenticated data, for us and competitors, show we grew faster than competition in the six months period. We grew 66% in GMS during this period, while authenticated data of rival shows they grew 43%. We are also surprised by certain narratives about rival’s turnaround story despite credible data showing we are growing faster. Company managed to stay ahead of rivals and grew at a higher rate than industry peers largely led by its existing customer base, addition of new users and Prime subscribers. The company’s GMS grew by 59% in quarter ending June 30 this year, while the same grew by 72% in the quarter ending September.”

A spokesperson of Flipkart countered this claim “Flipkart continues to outpace the industry and our growth has accelerated significantly during the July-September quarter on the back of a very strong festive season. This report (Naspers) actually refers to the January-June period and, as all growth data, has a lag of three months so the comparison isn’t like-for-like or relevant”.

In terms of units sold, the company grew by 88% in quarter ending June 30, 2017, while the same was 67% in the quarter ending September 30, 2017. Industry executives attribute lower unit sales to GST as multiple e-tailer advanced their mid-year sales before the new tax regime was implemented in July.