E-commerce giants, eBay is all set to make its return back into the Indian Market, after it officially ended its partnership with Flipkart in India. The company is one of the largest competitors of Amazon on a global basis but it has struggled to retain a stronghold in India, which is seen as one of the largest e-commerce markets.
eBay’s revamped plans for India:
eBay’s decision is a result of Flipkart’s recent deal with American major Wal-Mart. The American e-commerce company has now no association with Flipkart in India and is all set to take back control of the eBay.in domain from Flipkart. A company spokesperson confirmed that eBay will be taking control of its domain in a statement that read “We are immediately focused on the cross-border trade opportunity and encourage India-based sellers to continue to take advantage of eBay’s global platform and sell to customers around the world”.
The company has now turned its focus on providing a better platform for India based sellers to export their products and goods on a worldwide basis. On the other hand, Flipkart was largely focusing on servicing the Indian market as it looked to sell Indian goods to Indians. This change in operation would certainly be a welcome change for Indian merchants that otherwise find it prohibitive to market their goods worldwide.
Flipkart Finally Shuts Down eBay India Portal; Working On A New Refurbished Goods Platform
The deal between Flipkart and eBay:
eBay found it difficult to directly compete in the Indian market with Amazon and Flipkart and instead sought a different route to stay competitive. Indian e-tailer, Flipkart acquired the eBay.in domain from the eBay via a $1.4 billion deal led by a consortium of e-Bay, Tencent and Microsoft. The American major had already invested $500 million into Flipkart at that time and now the company has made more than double on its initial investment as it is now exiting the business with $1.1 billion in assets.
eBay’s plans in India:
Flipkart had already shut down the eBay.in domain in the country earlier this month. So instead of restarting this domain and re-entering the business, eBay has launched a new service known as ‘2GUD’, which sells refurbished goods. Although this isn’t a direct replacement to its original service, this is certainly a way to start back in the country. The company’s CEO had earlier noted that the company would be restarting its operations in India with a different set of inventory, but there wasn’t much information revealed at that time.
The company’s CEO Devin Wang had commented, earlier this month in the company’s earnings call “In India, we will start with export meaning Indian sellers selling on other marketplace platforms around the world that was something that we turned over to Flipkart. We are going to get that back upon the closing of the transaction. So, we will light up the Indian seller base to sell across all of our major markets”.
eBay hasn’t had the best of success in India as it has made major moves in the country with little to no success. The company has now been talking to popular online e-commerce player ShopClues to re-enter the market. It had originally entered the market in 2004 by acquiring Baaze.com but still didn’t have much success despite being the first entrant in the country. The company also had mixed results with its acquisition of SnapDeal, where it had written down $61 million investment earlier this year.
Flipkart Plans to Shut Down eBay India, Launch a New Platform to Sell Refurbished Products
The post eBay Wants To Launch Export Platform For Indian Sellers appeared first on MySmartPrice.
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