The e-commerce scene in India is pretty much booming with a gazillion “Flipkart” clones and seemingly endless hordes of VC/PE money. But how much do these firms actually make, in terms of revenue? To answer this question, I’ve been wondering if its possible to estimate revenue for some of the more leading firms in the space. To do this, I chose Flipkart, mainly for its prominence and the fact that they recently announced a ballpark figure for their revenue.
- Is this an effect of Flyte being launched? Unlikely, since by FlipKart’s own assertion Flyte currently represents only 1% of overall sales. Also Flyte retails digital music at approximately Rs 10 per track (approx. 20 cents). Combining, these two figures it definitely seems highly unlikely that the increase is because of Flyte.
- Is Flipkart’s foray into multiple categories finally paying off? Possibly. They definitely seem to have helped Flipkart raise the average transaction size to $35
- Is this the effect of Flipkart’s recent media campaign? Considering that the new campaign launched around the same time that sales started picking up, this might be a possible cause. However, I would definitely need more data before judging on the causality and I guess there is only so much one can do with public sources.
- The traffic estimates website does not clearly indicate what the figures are. For the sake of convenience I assumed that the figures represent visits by potential buyers and not unique customers
- Biggest assumption – Trafficestimate.com gives fairly OK estimates