Amazon catches with nearest competitor Flipkart in India

The most advanced user engagement platform for web, mobile and across devices Amazon’s app engagement in India grew 46 per cent year-over-year in Q1 2017, whereas Flipkart, the e-commerce market leader in the country, saw a 12 per cent decline. This shows that Amazon is a growing threat to struggling Flipkart.

The increased mobile engagement is an extremely positive sign for Amazon as mobile accounts for a large portion of e-commerce in India. Two of the country’s largest e-commerce platforms Flipkart and Snapdeal came from their mobile apps and mobile sites in 2016. In a recent survey of internet and mobile association of India 77 per cent urban Indians and 92 per cent of rural Indians depend on mobile devices for internet access. Hence, a lot of success in attracting mobile traffic and sales is important to Amazon’s drives in the region.

The e-commerce giant's growth also spells trouble for Flipkart, which has struggled to drive organic growth lately. Flipkart’s decline in mobile engagement is a troubling sign, especially given that its unique purchasers only grew 11per cent over the past year, compared with Amazon’s 113 per cent growth, according to 7Park Data’s study. Flipkart recently acquired eBay’s India business to help kickstart sales growth, and it's also reportedly in talks to acquire Snapdeal.

Amazon has pledged to pour $5 billion into India, and the investment seems to be paying off. Logistics in India is a major concern for these firms Additionally, a massive unbanked population precludes a huge section of Indian consumers from making online payments.If such challenges are overcome, Amazon will be self-confident to overtake Flipkart’s lead position in the market.