Seven-year-old internet commerce company Meesho has overtaken global e-commerce major Amazon to emerge as the second largest player in terms of order volumes, capturing about 21 per cent of market share during the first week of festival sales, according to a report by research and forecast firm Redseer.

“In terms of order volumes, Meesho, with its lower AOV (average order value) and high penetration in tier-2 cities, emerged the second largest player capturing ~21 per cent of the market share while the Flipkart Group emerged the leader,” said Sanjay Kothari, Associate Partner, Redseer Strategy Consultants.

Flipkart Group (Flipkart, Myntra, and Shopsy) was the market leader, both in terms of order volumes (49 per cent market share) and gross merchandise value (62 per cent market share) during the first festival sale week. Further, Amazon took the second position with 26 per cent market share in terms of GMV, followed by other players, including Meesho making 12 per cent of the share.

Meanwhile, an Amazon spokesperson said, “We cannot comment on speculative reports without robust and transparent methodology especially as these have not been shared with us. We witnessed the highest-ever start to the event in the first 48 hours, with 8x sales as compared to the average business days. This response is reflected across all categories, and we have overall seen a substantial increase in visitors vs 2021.”

Online retail platforms have seen a robust 27 per cent y-o-y growth, clocking a sale of $5.7 billion, said the report. While this was 97 per cent of the $5.9 billion that Redseer had projected for the week, the growth was higher than last year. The sales week included events by all online retail platforms between September 22 and 30. And for platforms that did not run a sale during the period, the report had considered business-as-usual (BAU) order volumes.

Category growth

Mobile as a category continued to lead GMV share, contributing to 41 per cent, translating to 56,000 mobiles sold per hour. On the other hand, fashion contributed to 20 per cent of GMV, which grew 48 per cent y-o-y.

Compared to BAU (business as usual), mobile saw the highest growth at ~7x while electronics and large appliances saw ~5x growth, fashion at ~3x growth and other categories at ~2x growth. In terms of transacting shoppers, the number increased by 24 per cent y-o-y with ~65 per cent of shoppers coming from tier 2+ cities. About 75-80 million shoppers placed orders across all platforms during the week.

Moreover, the spend per online shopper increased marginally by 3 per cent. While the beginning of the last quarter was slow on demand, Redseer noted a good uptick in consumer sentiment and consumption in late August/ September and hoped this to further lead to demand recovery.

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