2GUD is the Flipkart’s New Platform For Selling Refurbished Mobiles, Laptops and Accessories

After stopping the operations of eBay in India, Flipkart has announced the launch of their new e-commerce website 2GUD. The Indian based e-commerce giant haw now entered the frame of the refurbished goods segment with 2GUD, a market which CEO Kalyan Krishnamurthy expects to be about $20 Billion in the next 5-6 years.

2GUD, for now, will focus its efforts on smartphones, laptops, tablets and electronic accessories. In the future, the e-commerce giant plans to include large electronics and home appliances among other categories.

2GUD: Tested, Quality goods with Warranty

With the launch of Flipkart’s 2GUD, the platform can provide customers who are ‘Value centric’ with products that are priced between 50-80% of its original price, which will depend on the level of certification on each of them.

The Walmart-owned e-commerce brand also confirmed that the products that consumers can buy from 2GUD are thoroughly tested and certified. 2GUD will provide a warranty on the products ranging from 3 to 12 months, as well as the servicing the products through their vast network of service centres across the country.

2GUD: A ‘Distinct and Separate’ platform

Since ET had reported on Flipkart’s possible entry into this particular market and suggested they might launch a platform for refurbished products, the service has come to become a reality and is currently Live.

The platform is formed from Flipkart’s learnings from eBay.in, which officially ended operations on August 14 of this year. eBay was connected with Flipkart but pulled out of the brand once they got news of Walmart’s then-impending acquisition of the e-commerce giant.

2GUD is currently available only on the mobile web, but would soon be able to extend it across desktop and mobile app. That said, Flipkart is looking at operating 2GUD as a ‘distinct and Separate’ entity, which is tasked with targeting ‘Value buyers’. It does not come as a big surprise as in the past Flipkart has been able to do business with leaving acquired business like Flipkart and Jabong to operate as an independent subsidiary rather than merge operations into the main Flipkart site.

2GUD: An ‘Unorganised and fragmented’ refurbished sector.

Flipkart VP, Anil Goteti suggested that despite the considerable size and potential of the refurbished market in India, it remains one which is unorganised and highly fragmented. The idea behind 2GUD is to target Tier 2 places in India accurately, but the biggest hurdle is the lack of trust in refurbished products in the country, which now 2GUD is ready to challenge.

Flipkart wants to take the values of affordability, availability and accessibility into the refurbished market with the aim of addressing the critical problem of convenience and the aforementioned trust issues. CEO Kalyan Krishnamurthy said, “As a market leader, Flipkart has always tried to solve for India and offer a shopping experience that is fulfilling in many aspects. With 2GUD, the trust deficit that exists in the refurbished goods market is removed, as well as adding convenience. This platform offers customers yet another avenue to access quality products at the most affordable prices’.

2GUD: The competition for Refurbished products grows.

With the launch of 2GUD, Flipkart has now entered a zone where the competition is expected to be increased significantly in the future. Currently, there are other decently established players like zefo and Amazon themselves.

However, Flipkart is expected to have the upper hand, based its plans to execute the business in the future. For instance, they are set to regulate and organise the current state of buyer-seller interactions and simplify the whole process. Additionally, 2GUD will leverage Flipkart’s service capabilities and their support network, which is spread across the country, something that would provide 2GUD with the edge as they enter a new market.

Overall, the market for refurbished products, especially electronics, despite its size and growing stature is still something consumers are not comfortable with. IT is the value-centric consumer that is likely to visit and use these services, and India has significant potential when it comes to providing such consumers. Flipkart’s 2GUD has plans to expand this business beyond mobile phones, laptops, and consumer electronics in the future, possibly into furniture and other products; however, the first phase of business and response could play a determinant role to those plans.

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