Snapdeal, Amazon don’t emerge as big gainers in 2015, it’s the small retailers eating away their pie!

Small etailers are showing their presence are also eating into market share of the biggies like Snapdeal and Amazon.

As per a research report of Morgan Stanley, Snapdeal and Amazon India lost market share in 2015.

Among the bigwigs, Flipkart was the only one that managed to marginally increase its share, despite facing a decline in combined market share, accounted for more than 80% of the total market.

In terms of Gross Merchandise Value (GMV), India’s market share of Snapdeal and Amazon in 2015 was at 26% and 12%, respectively.

Meanwhile, Flipkart was numero uno as it market share went up from 44% to 45%, the combined market share of India's top three ecommerce companies fell from 91% to 83%.

Whereas, Paytm was steady with 7% market share, small and more-focussed online retailers gained as they saw an increase from 2% to 10%.

Nitin Chhabra, CEO of Bengaluru-based ecommerce consultancy firm Ace Turtle, told ET, “Verticals players such as Urban Ladder and Zivame have started nibbling at market shares. India will be far more democratic than China where it is just few big players.”

However, Amazon said that the report did not take into account the ground realities.

"The report does not reflect what we are actually seeing on the ground as we are growing significantly faster than the growth rates of the ecommerce industry in India and other mentions in the report. We have previously announced that Diwali 2015 was four times bigger than Diwali 2014 and we sold more in Q4 2015 than we did in the entire previous year (2014)," said Amazon’s spokesperson.