After Flipkart's CEO and co-founder was replaced following performance issues, the India-based company that gained global recognition in 2007, might be losing its battle against Amazon in an uncertain market. 

Amazon recently beat Flipkart's Gross Merchandise Value (GMV) by recording a GMV of 200 Million Indian Rupees ($3 million) in July, and the company seems to be struggling to keep up with the benchmark set by the e-commerce giant.

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According to Bloomberg, Flipkart's slip from No. 1 has to do with its slack performance, something that was instrumental in the demotion of its CEO, Sachin Bansal.

Bansal, now the COO at Flipkart, was replaced by Binny Bansal and has candidly admitted to having been demoted for poor performance.

However, Flipkart is still maintaining its position as the market leader in e-commerce goods in the country with hopes of a revival pinned on its annual Big Billion Day (BBD) in October. Although it is too early to say if the BBD will help Flipkart significantly, insiders seem upbeat about it.

Despite the optimism at Flipkart, the mounting pressure has begun to show in the form of job cuts. A move that has lead many former employees to feel betrayed and let down, while current employees work under the shadow of imminent termination.

According to Satish Meena, an analyst at Forrester Research Inc., there would be further cost-cutting and terminations as Flipkart encounters "an increasingly tight funding scenario and no clear funding picture in the coming quarters." 

From the events that have unfolded in recent months, it is clear that the e-commerce monopoly that Flipkart and Snapdeal had been able to maintain for at least five years has been snatched with the coming of Amazon. It also begs to question whether punishing top brass staff is an effective strategy for improvement in the face of new challenges.

Meanwhile, experts believe that some merger might be expected between the former two e-commerce companies in a bid to stay afloat and compete effectively against Amazon.

What is scarier, however, is the suggestion that Flipkart's fading light might just be the tip of the iceberg. Many analysts have suggested that India is now experiencing an IT recession with many startups having to pack their bags and go home. 

What makes matters worse is that Amazon is not Flipkart's only rival. Uber is blooming in India and with its massive advertisement campaign and expansionist hiring policy, Flipkart must feel intimidated, if not threatened.

With a deadpool list already being tabulated for India as the IT revolution seems to be going down the cliff, e-commerce sites like Flipkart will have to fight a fierce battle to avoid sinking.