According to the report by Bernstein, the US-based research group, Amazon is lagging behind its competitor Flipkart in the Indian E-commerce race, as the company is incapable of spreading it to the smaller cities. The Global E-commerce giant American Founder report stated, “India is a prized market for global internet companies but challenging to unlock.” Who can forget Jeff Bezos’ 2014 visit standing on top of a colourful lorry announcing a $2 billion business? But nearly a decade later, Amazon India’s report card is decidedly mixed,” the report said, referring to the global e-commerce giant’s American founder.”

Amazon’s biggest overseas market is based in India. Also, many prime members of the company reside in India. As the company is growing expeditiously, the growth has come at a high cost of over $6.5 billion-plus investments. At the same time, the effectiveness stays subtle EBITDA margin -5-10 per cent, says the report.

Amazon, Walmart/Flipkart, and Reliance’s JioMart make India a three-player market – the market remains shattered with significant market differences by market tier, distribution model, and product category. Amazon is a leading retailer of core categories (consumer electronics, media) and has outperformed with 5 million prime subs and tier 1 cities.

Bernstein evaluated that Walmart, owned by Flipkart, generates annual sales of $23 billion in 2021; Bernstein also estimated that Amazon is the second big player generating $18 to 20 billion of the gross-merchandise value (GMV) last year, and Reliance ranks third in terms of e-commerce sales with around $4.6 billion.