Reliance: Amazon, Flipkart, Reliance may dominate Indian e-commerce market by 2025: Report – Times of India

India’s e-commerce market is expected to nearly double by 2025. According to a report by brokerage firm Bernstein, just like the US and China, the Indian e-commerce market is expected to become a three-player market. The report also adds that Flipkart, Amazon and Reliance Industries which currently hold nearly 70% of the market are expected to dominate 90% of the share in the coming years. As per the report, the country’s e-commerce market which amounted to $72 billion in 2022 is likely to hit $133 billion in size by 2025.
“Markets like India are still very early from an e-commerce penetration perspective…whereas markets like China (and) Korea have nearly doubled the penetration to between 27-30% of the population.…but the growth of the e-commerce market should accelerate, led by Reliance, Amazon and Flipkart and the increasing share of Tier 2+ cities. Like other markets (US, China), we expect e-commerce share to consolidate with the top three players expected to have ~90% market share,” the report mentioned.
Reliance may become the biggest player in the Indian e-commerce market
With around 60% share, Walmart-owned Flipkart and Amazon dominate the Indian e-commerce space. Reliance takes a distant third position. However, the report claims that Reliance may build on its retail and mobile network along with Jio digital ecosystem to eventually take the top spot in the e-commerce market.
“The advantages of its retail network, mobile network, digital ecosystem and ‘home field advantage’ in a famously complex regulatory and operating environment means in the long term, it will likely claim the lion’s share of the $150-billion-plus e-commerce marketplace,” the report adds.

The report also noted that e-commerce companies in India are currently focusing on acquiring scale, building loyalty offerings and expanding their total addressable market by going deeper into tier 2 and tier 3 markets. These companies are also increasing niche offerings in premium categories like beauty and personal care. The report also states that Reliance seems to have an edge in smaller towns and cities.
“Reliance is the only profitable business at 6-7% Ebitda while both Amazon and Flipkart are negative Ebitda. Reliance Retail is deep in tier 2/3 markets with around 70% stores in those markets,” the report added.