Meesho overtake Amazon
Meesho overtake Amazon as the second-largest participant by order share in this year’s Christmas sales, while Flipkart Group platforms led the market in both orders and gross product value (GMV).
Flipkart leads the market
According to reports, Flipkart is the winner in terms of both orders and gross merchandise value, or GMV. During the first several weeks of the festival, Flipkart held approximately 62 percent of the market share.
The total value of things sold is referred to as GMV, while the number of orders is referred to as order volume.
All e-commerce platforms are vying for the majority of the market share of $ 45 billion to $ 50 billion in e-commerce business. The sector is also predicted to reach $ 350 billion by 2030.
According to Sanjay Kothari, an Associate Partner at Redseer Strategy Consultants, “Flipkart Group (Flipkart, Myntra, and Shopsy) keeps maintaining its leadership position with 62 percent market share in GMV during the Festive Sale Week 1,” followed by Amazon with a 26% share, and the remaining 12% was spread among other e-commerce firms and “In regard of order volumes, Meesho, by its low AOV (average order value) and great penetration in Tier-2 cities, emerged as the 2nd largest player, taking roughly 21 percent of the market share, while Flipkart Group dominates here as well,” the company said.
Growth Figures from the sale
The information was acquired from Amazon’s Great Indian Festival and Flipkart’s Big Billion Day, which took place between September 22 and 30, respectively. Meesho, on the other side, boosts holiday sales by 68% in its ‘Meesho Mega Blockbuster Sale.’ This event ran from September 23 through September 27, 2022. Customers placed around 33.4 million orders on Meesho’s platform, with over 60% of orders coming from Tier 4+ locations.
Amazon, Flipkart, Meesho, Reliance’s JioMart, and Tata Group have all been running parallel sales events. They are vying for a piece of the $45-50 billion e-commerce sector, which is predicted to expand to $350 billion by 2030.
Analyzing data from the initial week of the holiday sale, September 22-30. Amazon’s festive sale event, Amazon Great Indian Festival (AGIF), which began on September 23rd, is still running as a month-long festive event. During the e-commerce firm’s 8-day-long festive sale event ‘The Big Billion Days‘ (TBBD) conducted between September 23-30, Flipkart stated it accomplished a landmark milestone of above 1 billion customer visits on its platform.
According to Redseer Report, Flipkart and Amazon fulfill most of their orders through captive arms such as eKart and ATS. According to Redseer, in the online retail business, 40-50 per cent of all orders were fulfilled by third-party logistics operators. Due to rising demand, 3PL logistics players increased their personnel in Tier 2+ cities to meet the platform’s expectations seamlessly. According to Redseer, Meesho is the greatest contributor to 3PL logistics players such as Ecom Express, Delhivery, and Xpressbee, with 100% of orders fulfilled through these 3PL providers.
“We are ecstatic about the huge consumer response to the Amazon Great Indian Festival 2022, with our first 12 days receiving the highest number of orders ever.” We cannot respond to speculative reports in the absence of robust and transparent methodology, particularly as these haven’t been shared with us “Amazon commented on the Redseer study.”We have had the event’s best-ever start in its first 48 hours, at 8X revenue compared to typical business days.”
This response is reflected in all categories, and we have witnessed a significant increase in visitors compared to 2021. Our vendor community received much more orders than the previous year and is overwhelmed by the customer response.”
According to Redseer research, after the completion of Festive Sale 1, online retail platforms saw a healthy 27 percent year-over-year growth, with a sale of $ 5.7 billion (Rs 40,000 crore). While this was 97% of the $5.9 billion that Redseer had predicted for Festive Sale Week 1, it was a greater growth rate than last year, according to Redseer.
Between September 22 and 30, all online shopping platforms held sales events as part of the Festive Sale Week 1. The analysis also took into account BAU (business as usual) order volumes for platforms that did not conduct a promotion during any of these periods.
“Mobile as a category remained to lead GMV share, accounting for 41% of GMV, equating to 56,000 mobiles sold every hour,” stated Ujjwal Chaudhry, Partner at Redseer Strategy Consultants. On the contrary, fashion contributed 20% of GMV, which increased 48% year over year from the previous holiday.”
When contrasted to BAU, mobile showed the most growth (7X), followed by electronics and major appliances (5X), fashion (3X), and other categories (2X).
The number of transacting shoppers climbed by 24% year on year, with Tier 2+ cities accounting for 65% of the total. During Festive Sale Week 1, about 75-80 million consumers placed orders across all platforms.
Tier 2+ cities experienced the greatest year-over-year rise in online shopping. Furthermore, spending per online consumer surged by 3% during the recently finished festive week. The increase in shoppers is due in part to the huge inventory that e-tailers have been able to provide financing structures that facilitate affordability, and technological breakthroughs (such as live commerce) that continue to boost adoption and excitement.
According to Redseer, e-commerce retailers headed by Amazon and Flipkart are predicted to generate $11.8 billion in sales this holiday season, almost double the pre-pandemic record of $5 billion in 2019.
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