The scenario of E commerce: Big Players vs. Startups

With the advancement of technology, there are many individuals who have forgotten that there was a time when they use to buy things manually. But, now the businesses are coming online with an eCommerce online platform. Nowadays, the big players in the online shopping site such as Amazon and Flipkart, they are leading the impact by presenting new innovations. To remain on the list of competitive industry, the eCommerce companies require to be updated with current trends. In the year 2016, the U.S. organizations at online retailers spent $360 billion, with Amazon that accounts for a whopping $ 150 billion of all that. In simple words, we can say that almost 50% of the every e-commerce dollar goes to Amazon and so the big players like Amazon and Flipkart are creating their own image in the competitive market. These both are the online platform which is visited daily by thousands of people.

big players vs startup

The music streaming arms of the telecom company Jio (Reliance Jio Music) and Saavn Last year (September 2017) merged jointly to strengthen their foothold in digital music market which was expected to cross about $460 million revenue by the year 2020. Soon after the announcement of their merger, Reliance Industries also agreed to pick up 72.69% stake of AI-based education startup Embibe, with the proposal to invest about $180 million over the next three years. The startup industry was the culmination of a plan put into the motion in 2016, where the Reliance Industries was setting up $743 million of the fund to invest in digital businesses. When ecommerce web development took the world by storm in the late 90s and the early 2000s, the cutting edge matters knew that the future of e-commerce website development is the information superhighway.

How Should E-commerce Startups React to Future?

As India’s top online retailers Flipkart, Snapdeal & Amazon are well prepared to face off competition, the country’s vertical eCommerce players are talking a slight path with less trodden. Companies like online furniture or grocery (JumboGrocery) and lifestyle retailers Pepperfry, Urban Ladder, online jewelry like Bluestone, are more focusing on hooking users with the help of their newer catalog, ensuring top-notch deliver services and also better customer experiences. The attracting offers by Flipkart, Amazon, and Snapdeal have scouted the buyers for a product online during each season (either sale, festive). In 2012, about 30% of the shoppers turned Amazon to research their most current online purchase among which only 13% turned to Google.

react of ecommerce

Ecommerce big players reacts opposite to startup companies

Justin Winter, who built e-commerce business with $12 million run rate in just 18 months, he shared shortcuts for e-commerce websites development with clarity. As we know, the startup for e-commerce have a low budget so they do not focus on advertising, they have limited constraints for their organization. While, on the other hand, the big players focus more on advertising, they do not have limited time constraints. Shopify, a top big player for e-commerce platform with 70,000 retailers, has recently released a point-of-sale which will connect the physical and online retail. At the same time, Warby Parkers, a small startup that was found and started even though with only 10% of their sales which occurred offline, but that 10% of sales leads to customer retention and online success which would not otherwise be possible.

How to Compete With E-commerce Giants?

Whether you are a big player or a small startup in e-commerce filed, the growth of e-commerce website depends upon your customers. For years, Amazon and eBay have been dominated the world of e-commerce and are driving many small businesses to extinction. Already, these giant are willing to spend millions of dollars on marketing and thus offers the merchandise that ruthlessly undercuts upstart retailers. Fresh ideas are always abundant and they are always the first and new approach, product concept or methodology that, with the use of right backing, makes leaders can be toppled, or at least carve a sweet spot in a niche which is undeserved all that may be your startup needs to achieve. 

To compete with ecommerce giants, you must have these following steps to be included in your business. By including these steps, you will procure the benefits of ecommerce into your organization such as:

  • Create your own product

If you are retail startup, then you need to think about to bring the new & exclusive products to the marketplace. For ex: With the help of special deals with top brands like Nike, Clavin Klein etc, Amazon has acquired a strong foothold in general retail. Your focus must be on targeting the niches which are either underserved or nonexistent, create your own fashion brands and innovations which allow you to sell products which are not within the reach of giants. You can take a page out of startup that already have successful sidestepping for the established giants of e-commerce like Chloe, Isabel, etc.

  • Understand the shopper

Once the concept process is completed, you are ready to launch your e-commerce website. As a startup, your ability to create lasting, memorable relationships will be your trump card as you aim to steal the hearts of your customers. The time from concept to launch still continues to shrink since the barriers to market are literally non-existent. Until you have a complete product, there is no reason to wait, before launching a website that can be done for free using website builders like IM creator, Wix, etc. The point is not to dwell on or spend too much money and time on building a massive online warehouse, rather than start showcasing upcoming work.

benefits of ecommerce new blog

  • Mobile & hearts to customers

Your startup is geared up failures without the use of mobile strategy as a point blank. Mobile is an integral part of everyday lives for the shopping experience customers use their device in stores to compare the prices with various other competitors. About 88% of the people agree that having a mobile phone which provides real-time information to the customers makes them more casual with shopping. 63% of the people are expecting to do more shopping through mobile devices over the next few years. In addition to it, your startup belongs to platforms like snap chat and Instagram, they have created a visual world with fun through mobile.

  • Fill a need

As you build your startup, there is always an opportunity to make marketers and niches better for every business. You must assess what you are lacking with your target market and then dedicate some of the resources so that it can be made perfect with common complaints and difficulties that customers usually experience. If your customers are upset with your niche or because o the poor quality of your product, then make sure the provision for topping that and it will provide the opportunity to set your own trend and can grow without getting much positive response and without gaining much attention from the menacing giants of e-commerce.

Top Funded E-commerce Startups in India

In the first three quarters of 2015, e-commerce accounted for nearly half of the US $6.4 billion of funding in Indian startups. According to the last year’ trend when India had its first billion-dollar funding in Flipkart that was nearly 2/3 billion dollars of the amount which was invested in Snapdeal. Later in the year, it also betted on Snapdeal for two-pronged proxy war against its global rival Amazon on Indian turf. According to the data from venture capital firm, the top e-commerce funding in India is Paytm ($890 million), Flipkart ($750 million), Snapdeal ($500 million), Pepperfry ($100 million), Shop clues ($100 million) and many more. After Japan SoftBank came with a bag full of cash for Snapdeal, it was Alibaba’s turn to make its move in the year 2015.

Ecommerce chart

On the fringes, a quiet battle was brewing between an eclectic mix of companies that include global e-commerce giants like Amazon, Walmart, and Alibaba, organized retailers such as Future Group, Reliance and Tata and well funded Indian startup like BigBasket, Grofers an also extended to Google Dunzo. To further fuel this opportunity for starting an e-commerce business, the investor interest increases 7x between the fiscal2017 and 2018, in that small startups like Grofers and BigBasket are the major benefactors. The total funding for Yepme ($87 million), Homelane ($ 54.5), Urban Ladder ($50 million), Naaptol ($21.5) and the list goes on.


For starting an e-commerce business can be a difficult challenge for the organization, but to lead it with the top e-commerce big players can be more difficult. Many big players have already created their brand image in the global market, but it does not mean that startups are lacking behind. There are many startup ecommerce development companies like Grofers, Bigbasket, etc who are leading with full enthusiasm to create their own brand image in the competitive market and will once come on the top to compete with big players like Amazon, Flipkart, etc.

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