Ups And Downs In The Indian E-commerce Sector

The Indian e-commerce sector is going through the very tough phase. India is a big market for e-commerce sector and everyone is putting their efforts to become number one in this competitive environment. However, many e-commerce companies have failed to understand the behavior of the Indian customers, which has resulted them to bear huge losses year on year. And losses which companies have incurred are in thousands of crores rupees.


Snapdeal, Flipkart and Amazon are three biggest rivals of each other. And each company is making their best to beat other. So does to compete with the mounting competition and to win the trust of the investors, companies are churning their money like water in terms of discounts and offers. As per the report of the Business Standard Flipkart took loss of INR 2306 Crores till the end of 31st March, as Flipkart battles a Cash-flush Amazon to retain Number one position in India. And this loss was double as compared to financial year 2015.


At the same time, biggest US online retailer i.e. Amazon is making his strong effort to give a tough fight to Indian e-commerce websites. And this results that Amazon reported a loss of INR 1724 Crores in 2015, due to heavily discounts and offers on its products. The channel India is tapping on the company bumpy for the first time in Amazon’s global incomes when the company said its worldwide losses increased to $541 million in the quarter that finished in September, mainly due to outlay in India.


Losses of the Flipkart are more than Flipkart and Amazon. Company has reportedly loss of INR 3316 Crores in Financial year 2016 as per the news of Livemint. Snapdeal posted a loss hike of 150% from 1328 Crores to 3316 Crores. It is something which surely will not make your investors happy while loss percentage has grown to 150% and revenue percentage is only by 56. Previous year was tough for Snapdeal. The company, which had developed the biggest local rival to Flipkart, skidded to the 3rd place as Amazon India sustained to gain market portion.


And on others hands Jabong and Myntra which mainly deals in fashion category, losses of these both websites have also gone twofold year on Year. So, e-commerce is a business of loss in India. As all major e-commerce are suffering from the losses to sustain their growth on path.


There is a ray of hope, Infibeam which deals in every category ranging from electronic to fashion is making regular profit. Company came in existence with the Flipkart, however, Flipkart took huge investments to roar the Indian e-commerce. Meanwhile Infibeam continued in the race like a Turtle. In the Recent financial year i.e. 2016 Infibeam has made profit of INR 12 Crores. So, infibeam has proved that e-commerce is not a business of loss if Your aim is to make the profit instead of numbers the then it gone to worth for you. As few years ago race was completely based on numbers and amid the race company vanished completely. As infibeam has come up with the lead model for all the E-commerce companies in India.


Article Posted By : Rahul991kumarlView All Articles

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Keywords :
E-commerce websites , Jabong , Myntra , Loss of Flipkart , Snapdeal , amazon


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