How Does Amazon Fare In The Indian E-Commerce Market?

Amazon (NASDAQ:AMZN) has been operating in the e-commerce market in India since 2013, and has grown significantly in the last three years. It is now among the top three e-commerce platforms in the country, along with Flipkart and Snapdeal, both in terms of Gross Merchandise Value (GMV) and number of site visits. With an estimated current market size of $38 billion, e-commerce in India is expected to grow to about $120 billion by 2020, and this presents a massive growth opportunity for Amazon. ^[1]

While GMV represents the total value of all products sold, revenues realized by e-retailers is only a fraction of the same. Amazon generates revenue from three major sources in India – commissions from third-party sellers; sales of Kindle readers, e-books and accessories; and advertisements on its website. In this note, we take a look at Amazon’s performance in the Indian market with respect to its competitors.

Have more questions about Amazon? See the links below.

• Why Is Amazon Setting Up Its Own Air Delivery Network?
• What Is Amazon’s Revenue and EBITDA Breakdown?
• Can Amazon Repeat Its Margin Performance In 2016?
• Is Amazon Poised To Capture A Higher Market Share In The U.S. EGM Market?

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1. Ecommerce Landscape of India [2016], ASSOCHAM India, Feb 26 2016 [↩]