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5/2/2014 Flipkart changes business model, launches Flipkart Marketplace | Business Standard
http://www.business-standard.com/article/companies/flipkart-changes-business-model-launches-flipkart-marketplace-113040600051_1.html 1/8
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5/2/2014 Flipkart changes business model, launches Flipkart Marketplace | Business Standard
http://www.business-standard.com/article/companies/flipkart-changes-business-model-launches-flipkart-marketplace-113040600051_1.html 2/8
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Companies » News » News
Flipkart changes business model, launches
Flipkart Marketplace
With a marketplace model, Flipkart will no longer have an inventory of its own, rather buyers can deal
with sellers directly
Shivani Shinde | Mumbai April 6, 2013 Last Updated at 11:21 IST
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Read more on: Flipkart | E-commerce | Online Shopping | Virtual Mall
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5/2/2014 Flipkart changes business model, launches Flipkart Marketplace | Business Standard
http://www.business-standard.com/article/companies/flipkart-changes-business-model-launches-flipkart-marketplace-113040600051_1.html 3/8
redBus.in being valued at $110 mn
eCommerce player Flipkart today announced the launch of Flipkart
Marketplace. To start with, Flipkart has on-board 50 sellers that will sell
books, media, and consumer electronics.
The announcement means a change in the way Flipkart does business.
With a marketplace model, Flipkart will no longer have an inventory of its
own, rather buyers can deal with sellers directly and the delivery will be
done by Flipkart. The model will be similar to eBay India.
Going forward, users will be able to compare sellers and get the best prices at varied service levels for most
products. Flipkart will also introduce this model to categories like clothes, shoes among others.
“We created the blueprint for Flipkart Marketplace with the determination to take online shopping to the masses.
In the last 12 months, more than 80 million unique visitors have come to Flipkart. Five out of six online Indians
visit our website. Sellers on Flipkart will get access to this vast user base - which is akin to the footfall in prime
retail spaces in the top 10 cities of the country,” said Sachin Bansal, CEO and Co-Founder, Flipkart.
In terms of enabling the SME community, Marketplace will now allow smaller players to transact on the same
platform as larger established retailers and help them garner business intelligence by understanding their position
vis-a-vis competition based on factors such as pricing, offers, deals, etc.
At present, the entire investory of Flipkart is being managed by WS Retail. While WS Retail will continue to be
one of the sellers, Flipkart will also slowly incorporate new sellers.
However, the ecommerce company will continue to manage the delivery and shipping of products.
Read more on:
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5/2/2014 Flipkart changes business model, launches Flipkart Marketplace | Business Standard
http://www.business-standard.com/article/companies/flipkart-changes-business-model-launches-flipkart-marketplace-113040600051_1.html 4/8
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Comments (7):
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Subhadip
The CEO of flipkart must have gone mad! Sorry not going to buy from flipkart anymore. it's
no different from ebay from now on...period.
02-05-2013 16:44:32
shijo
exactly.flipkart's business was trusted by the customer's as there was accountability. But with
this new model, the onus falls entirely on the shoulders of the sellers who claim to be genuine.
God only knows more than half will be some shady one-nighters who deal in sub-standard
goods.Flipkart has let down it's loyal customer base and sadly this will sound the end of
market leader status.Bad move , WS.
17-04-2013 10:50:58
Jubin
I never shopped at ebay because i found flipkart's way of selling much better than the former
one. but now Flipkart is "becoming" eBay, thats a sad loss of my interest of online shopping.
15-04-2013 00:43:56
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5/2/2014 Flipkart changes business model, launches Flipkart Marketplace | Business Standard
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Chippku
Finally Flipkart is a Indian company...borrowing the idea is a human tendency.
09-04-2013 10:38:42
siddharth
I agree, that trying to adapt an existing model is a horribly bad idea, especially when
everything is running good! Hence, they are most likely to loose grounds. I believe they are
planning cost cutting while generating larger revenues! They could have had an alternative
running model and kept intact the existing one. However, things may not head the way they
plan! This can lead to eventual collapse of Flipkart or at least put an end to its growth!
08-04-2013 09:06:40
Akshay
Sure looks to me as they are finding new ways to circumvent the FDI regulation. Online
marketplaces are relatively free for FDI, while online retail shops are barred to a certain
percantage. Having its own subsidiary as a retail agent leaves it free to ply its goods under the
guise of an "online marketplace", pretty neat though.. Flipkart seems to run as usual.
06-04-2013 19:01:52
MIK
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5/2/2014 Flipkart changes business model, launches Flipkart Marketplace | Business Standard
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5/2/2014 Flipkart changes business model, launches Flipkart Marketplace | Business Standard
http://www.business-standard.com/article/companies/flipkart-changes-business-model-launches-flipkart-marketplace-113040600051_1.html 7/8
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5/2/2014 Flipkart changes business model, launches Flipkart Marketplace | Business Standard
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Flipkart changes business model, launches flipkart marketplace business standard

  • 1. 5/2/2014 Flipkart changes business model, launches Flipkart Marketplace | Business Standard http://www.business-standard.com/article/companies/flipkart-changes-business-model-launches-flipkart-marketplace-113040600051_1.html 1/8 E-Paper | Today's Paper | SmartInvestor.in | BS Hindi | BS Motoring | BS Books | B2B Connect | Apps Sign in | Register Friday, May 2, 2014 | 09:41 PM IST News Stock Quote Authors Advanced Search Home Market Companies Opinion Elections Technology Specials
  • 2. 5/2/2014 Flipkart changes business model, launches Flipkart Marketplace | Business Standard http://www.business-standard.com/article/companies/flipkart-changes-business-model-launches-flipkart-marketplace-113040600051_1.html 2/8 Tweet 30 5 16 Personal Finance Portfolio My Page News Results BS 1000 Auto Consumer Engineering Financials Industrials Infra IT Oil & Gas Telecom Agri Media Health care Services Others Companies » News » News Flipkart changes business model, launches Flipkart Marketplace With a marketplace model, Flipkart will no longer have an inventory of its own, rather buyers can deal with sellers directly Shivani Shinde | Mumbai April 6, 2013 Last Updated at 11:21 IST Add to My Page Read more on: Flipkart | E-commerce | Online Shopping | Virtual Mall Related News Letters: 'Free' home delivery For Helion, e-commerce party has just begun Flipkart.com starts accepting international cards Snapdeal arrives at deal to raise $20 mn 67Like
  • 3. 5/2/2014 Flipkart changes business model, launches Flipkart Marketplace | Business Standard http://www.business-standard.com/article/companies/flipkart-changes-business-model-launches-flipkart-marketplace-113040600051_1.html 3/8 redBus.in being valued at $110 mn eCommerce player Flipkart today announced the launch of Flipkart Marketplace. To start with, Flipkart has on-board 50 sellers that will sell books, media, and consumer electronics. The announcement means a change in the way Flipkart does business. With a marketplace model, Flipkart will no longer have an inventory of its own, rather buyers can deal with sellers directly and the delivery will be done by Flipkart. The model will be similar to eBay India. Going forward, users will be able to compare sellers and get the best prices at varied service levels for most products. Flipkart will also introduce this model to categories like clothes, shoes among others. “We created the blueprint for Flipkart Marketplace with the determination to take online shopping to the masses. In the last 12 months, more than 80 million unique visitors have come to Flipkart. Five out of six online Indians visit our website. Sellers on Flipkart will get access to this vast user base - which is akin to the footfall in prime retail spaces in the top 10 cities of the country,” said Sachin Bansal, CEO and Co-Founder, Flipkart. In terms of enabling the SME community, Marketplace will now allow smaller players to transact on the same platform as larger established retailers and help them garner business intelligence by understanding their position vis-a-vis competition based on factors such as pricing, offers, deals, etc. At present, the entire investory of Flipkart is being managed by WS Retail. While WS Retail will continue to be one of the sellers, Flipkart will also slowly incorporate new sellers. However, the ecommerce company will continue to manage the delivery and shipping of products. Read more on: Flipkart | E-commerce | Online Shopping | Virtual Mall Advertisements
  • 4. 5/2/2014 Flipkart changes business model, launches Flipkart Marketplace | Business Standard http://www.business-standard.com/article/companies/flipkart-changes-business-model-launches-flipkart-marketplace-113040600051_1.html 4/8 Tweet 30 5 16 Add to My Page Comments (7): Comments to this article has been closed. Sort by Newest first Subhadip The CEO of flipkart must have gone mad! Sorry not going to buy from flipkart anymore. it's no different from ebay from now on...period. 02-05-2013 16:44:32 shijo exactly.flipkart's business was trusted by the customer's as there was accountability. But with this new model, the onus falls entirely on the shoulders of the sellers who claim to be genuine. God only knows more than half will be some shady one-nighters who deal in sub-standard goods.Flipkart has let down it's loyal customer base and sadly this will sound the end of market leader status.Bad move , WS. 17-04-2013 10:50:58 Jubin I never shopped at ebay because i found flipkart's way of selling much better than the former one. but now Flipkart is "becoming" eBay, thats a sad loss of my interest of online shopping. 15-04-2013 00:43:56 67Like
  • 5. 5/2/2014 Flipkart changes business model, launches Flipkart Marketplace | Business Standard http://www.business-standard.com/article/companies/flipkart-changes-business-model-launches-flipkart-marketplace-113040600051_1.html 5/8 Quick Links Companies Overview Go Latest News In this section Chippku Finally Flipkart is a Indian company...borrowing the idea is a human tendency. 09-04-2013 10:38:42 siddharth I agree, that trying to adapt an existing model is a horribly bad idea, especially when everything is running good! Hence, they are most likely to loose grounds. I believe they are planning cost cutting while generating larger revenues! They could have had an alternative running model and kept intact the existing one. However, things may not head the way they plan! This can lead to eventual collapse of Flipkart or at least put an end to its growth! 08-04-2013 09:06:40 Akshay Sure looks to me as they are finding new ways to circumvent the FDI regulation. Online marketplaces are relatively free for FDI, while online retail shops are barred to a certain percantage. Having its own subsidiary as a retail agent leaves it free to ply its goods under the guise of an "online marketplace", pretty neat though.. Flipkart seems to run as usual. 06-04-2013 19:01:52 MIK Back to Top Back to Top Hi Click here to go My Page
  • 6. 5/2/2014 Flipkart changes business model, launches Flipkart Marketplace | Business Standard http://www.business-standard.com/article/companies/flipkart-changes-business-model-launches-flipkart-marketplace-113040600051_1.html 6/8 All News Gas pricing: RIL moves Delhi HC for quashing of FIR Carrefour to cut staff count; India review plan may be in works Sun Pharma to shut Detroit plant in US HCC: Profit surprises but too early to raise a toast Jet Airways acting CEO quits, top-level exodus continues IFCI to rope in strategic investor for IFCI Factors Ranbaxy recalls nearly 30,000 packs of anti-allergy drug in US AVT Lifestyle joins VBJ to launch e- commerce jewellery site zaamor.com Odisha presses Nalco for aluminium supply contract with Midal Cables Reliance Capital Q4 net profit flat Helmets now mandatory for women pillion riders in Delhi Irda tightens rules for changes in shareholding in broking firms The A-Z of Lok Sabha Elections 2014 Gas pricing: RIL moves Delhi HC for quashing of FIR Gopalakrishna appointed Cafral director Carrefour to cut staff count; India review plan may be in works BJP urges LG to take action against 'mandi mafias' Sun Pharma to shut Detroit plant in US Several mobile banking apps vulnerable: Study YES Bank case hearing adjourned till June 19 Most Popular Read Shared Commented Modi wave leaves Maya at sea UPA decade was economy's best, says iPhone iPad android wap facebook twitter Google+ RSS Youtube From BS Website Home Markets Companies Opinion Technology Specials Personal Finance General News General Videos Events About BS About Us Code of Conduct Terms & Conditions Disclaimer Support & Contact Partner with Us Careers Advertise with Us Contact Us Feedback Subscribe E-Paper BS Magazines Portfolio Tracker BS Products BS Hindi BS Motoring
  • 7. 5/2/2014 Flipkart changes business model, launches Flipkart Marketplace | Business Standard http://www.business-standard.com/article/companies/flipkart-changes-business-model-launches-flipkart-marketplace-113040600051_1.html 7/8 Chidambaram Twin blasts on Bangalore-Guwahati Express kill one, injure 14 Maruti dashes hope of early car sales revival Commerce secy raps US step on IPR issue In a first, iron ore mines likely to be put on the block NRIs' India MF play to get thin as US Fatca kicks in AIBEA opposes SBI move RBI may have a 5th deputy governor Cement makers must invest Rs 3 lakh crore by 2025: CII UPA decade was economy's best, says Chidambaram Is Robert Vadra a liability for Priyanka's political career? Justice still denied Will develop Varanasi into spiritual capital: AAP Govt to name 'snoopgate' judge before May 16: Sibal More News Puravankara sells 50% stake in Kochi project to Sobha for Rs326cr SAIL sales up 14% in April Facebook acquires Helsinki-based fitness tracking app Launch of new residential units fall 8% in A'bad for Q1 of 2014 India is key to our Asia presence: Thomas Mitchell BurlingtonEnglish - Muthoot signs MoU for online marketing Ashok Leyland's April sales down by 21% BS Books B2B Connect iPhone iPad android wap Connect with BS Facebook Twitter Google + Youtube RSS Copyrights © 2014 Business Standard Ltd. All rights reserved.
  • 8. 5/2/2014 Flipkart changes business model, launches Flipkart Marketplace | Business Standard http://www.business-standard.com/article/companies/flipkart-changes-business-model-launches-flipkart-marketplace-113040600051_1.html 8/8 Setco, Lingotes form auto comp JV We'll still grow 4-5% this year, despite losing the large client: Rohit Kapoor Tata Motors sales slip 36%, Bajaj flat in April Business Standard 262,815 people like Business Standard. Facebook social plugin Like