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Flipkart Ads vs Amazon Ads – Which One Gives Better ROI?
- user
- October 09, 2025
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In India’s booming e-commerce landscape, Flipkart and Amazon are not just marketplaces — they’re also massive advertising platforms (retail media networks). As a seller or brand, choosing where (or how much) to invest your ad budget between Amazon Ads and Flipkart Ads can critically impact your ROI. In this post, we’ll compare both platforms, examine strengths, challenges, and ROI factors, and help you decide the right mix for your business.
The Rising Importance of Retail Media in India
Retail media — advertising inside e-commerce platforms — is rapidly becoming a major chunk of digital ad spend. In FY25, Amazon India and Flipkart together pulled in ₹15,573 crore in advertising revenue. Flipkart alone recorded ~₹5,000 crore in FY24 ad revenue. Amazon India’s ad business has grown consistently.
This growth shows how brands are shifting budgets from Google/Meta toward these platforms to reach consumers closer to the point-of-purchase.
Key Differences: Flipkart Ads vs Amazon Ads
| Feature / Dimension | Amazon Ads | Flipkart Ads |
|---|---|---|
| Reach / Market Share | Larger national & global reach; many SKUs, broader categories. | Strong presence especially in Indian markets, local reach, category strength. |
| Ad Formats & Tools | Sponsored Products, Sponsored Brands, DSP, Video, Display etc. | Sponsored Products, Brands, Flipkart Affiliate Ads, display placements in app. |
| Data & Targeting | Richer data, global benchmark insights. | More local / domestic consumer data, category-specific strength. |
| Cost / Competition | Often more competitive / expensive for popular categories. | Slightly lower competition in some niches; ad costs can be more favorable. |
| Checkout / Purchase Behavior | Customers accustomed to paying for shipping, Prime, etc. | Strong logistics (Ekart) and payment preferences in India; sometimes better checkout conversion. |
| Payments / Cash Flow Support | Amazon’s payout cycles, policies. | Flipkart offers 7-day payments and ad credits, helping cash flow. GrowthJockey |
| Ease of Entry / Tools for Sellers | Mature ad platform, advanced tools. | Improving platform tools; often more localized support for Indian sellers. |
| ROI & Margin Sensitivity | May demand higher margins due to increased ad costs. | Possibly better ROI in some categories due to lower CPC or competition. |
What Impacts ROI on Each Platform
- Competition & CPC / Bid Levels
In saturated categories, CPCs rise on Amazon, squeezing margins. Flipkart may have lower competition in certain categories. - Conversion Rate / Purchase Behavior
If Flipkart users convert better for your product category in certain regions, ROI will tilt toward Flipkart. - Product Fit & Category Strength
Some categories perform better on one platform (e.g. electronics may do better on Amazon; fashion or local goods might do well on Flipkart). - Fulfillment & Logistics
If your products are already in Flipkart’s logistics network (Ekart), delivery times and costs might favor ROI there. - Ad Tool Maturity & Data Insights
Amazon’s more mature platform might help optimize campaigns better, reducing wastage. - Payment Terms & Cash Flow
Flipkart’s 7-day payments and credit schemes can assist sellers in managing cash flow, which improves operational ROI. - Ad Mix Strategy
How much you divert budget to display, video, DSP, remarketing, vs just sponsor listings affects ROI.
When Flipkart Might Give Better ROI
- Niche categories or less competition
- Sellers in regions where Flipkart has stronger presence
- Sellers who benefit from faster payments/ad credit
- Categories where users prefer Flipkart’s interface or offers
- When Amazon costs are too high to maintain margin
When Amazon Might Be Better
- If your product attracts international / cross-border sales
- For categories where Amazon has strong dominance
- When you leverage Amazon’s advanced DSP / audience reach
- If your listing and SEO on Amazon are already strong
- When you want to scale aggressively in metropolitan / urban markets
Hybrid Strategy: Use Both
Rather than choosing one, many smart sellers use both platforms in a complementary strategy:
- Use Amazon for reach, premium categories, brand building
- Use Flipkart to tap regional strength, lower-cost conversions
- Cross-market traffic: run off-Amazon ads to both stores
- Allocate test budgets and monitor which platform outperforms for each SKU
- Shift budget dynamically based on campaign performance
Case / Example (Hypothetical)
A brand selling kitchen gadgets:
- On Amazon, they run Sponsored Products + DSP and reach national customers.
- On Flipkart, they focus on price-sensitive regions and local promotions.
- They discover that in Tier-2 and Tier-3 cities, Flipkart’s CPC is 20% lower and conversion rate is 10% higher — so they allocate more budget there.
- They use analytics to track which platform gives better cost per sale, and shift budgets weekly.
How to Compare ROI Objectively
- Use consistent metrics (cost per sale, margin, revenue, ACOS)
- Use SKUs as test units — compare for the same product across both platforms
- Use attribution and hold-out tests
- Monitor over time — trends may shift
- Consider hidden costs (storage, returns, logistics, credit, penalties)
Conclusion & Recommendation
There’s no one-size-fits-all answer: the better ROI depends on your category, margin, region, competition, and marketing maturity. In many cases, the best approach is a combination strategy, where you always keep testing and optimizing.
If you want help analyzing your SKUs, running side-by-side tests, or deciding budget splits between Flipkart and Amazon, TowerCircle can run that analysis and help you allocate ad spend to maximize ROI. Let’s optimize your retail media strategy together.