Everyone with an ounce of sanity and brain was saying this aloud e-Comm is bleeding and future looks murkier than people expected. But still there were a whole lot of Believers who thought its just a phase and things are not as bad as they look, not looking at recent fatalities in the space.
But here it goes, Flipkart, the poster boy of the Indian e-Comm space, who has outgrown everyone but still is in deep waters, has finally thrown the towel in the ring. As per the article “Flipkart Marketplace brings third-party sellers onboard, competes with eBay“ referred in the link as below, It is changing the biz model and going the ebay route, of commerce without holding the inventory itself.
Does this mean, Flipkart has finally given in to the pressure of being the “Real Online Retail Store” and the model is not viable anymore in India? Or there is more to it …
The Article referred to is as below:
“Flipkart Marketplace brings third-party sellers onboard, competes with eBay
Flipkart has launched a new Marketplace platform with 50 sellers onboard.
Online retailer Flipkart is looking to change its business model as it recently announced a new marketplace system. Dubbed as Flipkart Marketplace, the new system is said to transform the site into a “virtual mall” and provide customers access to various sellers and brands on one platform.
Moreover, users will be able to compare sellers and get the best prices at varied service levels for most products. Flipkart will also be introducing categories such as clothes, shoes among others.
The new business model of Flipkart, believed to be inspired from eBay and Amazon, indicates the company will no longer have an inventory of its own.
Flipkart in a release explains what the new system brings in for users as well as sellers. The company says users will continue to enjoy COD/EMI options and return/replacement policies.
One of the important highlights of the new system is that Flipkart will continue to take care of shipping and doorstep delivery through its logistics partners. A new protection programme will be formed to resolve complaints.
For sellers, Flipkart says it will bring in a “rigorous onboarding process” for identifying the sellers and to ensure sale of genuine products. Sellers who provide a superior customer experience will get prominence on Flipkart Marketplace. Flipkart further says the new system will encourage the SME community.
“We created the blueprint for Flipkart Marketplace with the determination to take online shopping to the masses. While on the one hand it furthers the Flipkart promise of customer delight by giving more choices at competitive prices, it also serves as the foundation for entrepreneurship to flourish without having to worry about investing in any physical or virtual infrastructure and yet access millions of customers across the country with just a click,” says Sachin Bansal, CEO and Co-Founder, Flipkart.
Flipkart’s Marketplace is set to change the industry trends with customers now having more choices alongside retailer’s assurance of genuine products. In the sellers’ point of view, the new system ensures they have exposure to a some 80 million unique visitors of Flipkart.”