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
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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
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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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3. 5/2/2014 Flipkart changes business model, launches Flipkart Marketplace | Business Standard
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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.
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4. 5/2/2014 Flipkart changes business model, launches Flipkart Marketplace | Business Standard
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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. 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
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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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6. 5/2/2014 Flipkart changes business model, launches Flipkart Marketplace | Business Standard
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8. 5/2/2014 Flipkart changes business model, launches Flipkart Marketplace | Business Standard
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