This is the 2nd largest online marketplace after Flipkart in India. No, it is not Snapdeal

Amazon has pipped Snapdeal to become India’s second largest online marketplace by shipments. Amazon India became the only online marketplace to post an increase in share from last year, moving Snapdeal from the second slot.

As per the industry estimates by an investor, which tracks the logistics market, and chief executive officer of a logistics company that handles shipments for online retailers, Flipkart's share of shipments fell from 43% in March 2015 to 37% this year.

Meanwhile, Snapdeal's shipments dropped from 19% to around 14%. Whereas, Amazon India’s share shot up to nearly 21-24% from 14%.

ET quoted industry experts and analysts who said the data were evidence of the larger unit market share trend in India's ecommerce industry.

“If there is no new entry, it will be a two-horse race (between Flipkart and Amazon) by the end of the year. If Flipkart is not able to get its act together in the next 6-12 months, Amazon can overtake Flipkart also," Satish Meena, a senior analyst with Forrester Research, told ET.

Amazon had forayed into India almost three years back and so far, the online marketplace has raked in nearly $2 billion in the country.

Amazon has pumped most of the money in enhancing the shopping experience of customers.

"In 2015, we grew by more than 250% over 2014. We are on a momentum to deliver similar levels of growth this year but on a much larger base," a spokeswoman for Amazon India told ET.

With Amazon coming on the second slot, Flipkart will also increase its efforts to create a huge divide with the former.

Snapdeal is also expanding its portfolio and partnering with other firms for more transactions.

"We already have more than 1 million users transacting across our platforms daily, which is more than Flipkart and Amazon put together," a spokesperson for Snapdeal told ET.

"We have clear leadership of the online market in India with over 60% market share in three of the largest segments - smartphones, fashion and electronics. Our focus will be to consolidate this leadership position by continuing to build world-class customer experience, innovate retail in India and build a technology powerhouse out of India," a Flipkart spokeswoman told ET.

As per Morgan Stanley, India's online retail market will touch $119 billion value by 2020.

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