Amazon is making a $5 billion play to became the top e-commerce site in India, and it seems the investment is paying off.
According to new data from data intelligence firm 7Park Data provided to several media outlets, Amazon is just a hair behind India’s top online retail site, Flipkart, in mobile app and gaining fast. The data shows that Flipkart captures 30.7 percent mobile market share, versus 30.3 percent for Amazon.
If trends in 7Park’s data are any indication, Amazon will soon pass Flipkart in mobile engagement. Amazon’s traffic grew 46 percent between the first quarters of 2016 and 2017, while Flipkart traffic declined approximately 11 percent during the same period. Amazon customers also spend more time on the app than Flipkart customers.
As noted by Quartz India, Amazon last year passed Flipkart in terms of the share of customers with the app installed. Amazon is also better at turning browsers into buyers, according to the data.
Amazon is pushing hard to become a dominant player in India, which is arguably the company’s most important overseas opportunity. Last year, Forbes reported on Amazon predictions that India will become a huge e-commerce market within a decade, and it will be Amazon’s biggest market outside the U.S.
Last year, reports surfaced that Amazon will invest an additional $3 billion in its India operations, which is on top of $2 billion already invested. That means the company is putting $5 billion toward its India business.
That investment includes Prime shipping, which launched in July 2016. Video is also one of Amazon’s top priorities in India, as the company plans to spend around $300 million to fund original movies and series there.
Flipkart is working to hold onto its lead. The 10-year-old company last week landed the biggest funding round in its history, a $1.4 billion investment from tech titans like Microsoft, Tencent and eBay. Reports indicate a possible merger between Flipkart and Snapdeal, the third most popular online retailer in India, according to the 7Park information.