Binny Bansal, the co-founder of Flipkart, has launched a new venture named OppDoor, which is geared towards assisting eCommerce businesses in expanding globally through comprehensive solutions. OppDoor aims to provide end-to-end support, including design, product, human resources, and backend assistance, to eCommerce companies seeking to extend their operations to different regions, leveraging top platforms like Amazon and others.
The company’s website outlines a wide range of services, describing them as covering a brand’s entire lifecycle, from inception to exit. OppDoor emphasizes its ability to deliver fully managed operations and business advisory services.
The strategic timing of OppDoor’s launch is noteworthy, occurring five years after the sale of Flipkart to Walmart in 2018 by Sachin Bansal and Binny Bansal. The non-compete clause associated with the Walmart deal ended in 2023, allowing Binny Bansal to venture into eCommerce again. In contrast to a consumer-facing internet firm like Flipkart, Bansal’s focus with OppDoor is to establish a startup that directly engages with businesses, aiding them in scaling operations.
Initially concentrating on eCommerce companies in the United States, Canada, Mexico, the United Kingdom, Germany, Singapore, Japan, and Australia, OppDoor does not mention India on its website.
Highlighting the significance of Amazon for eCommerce companies, OppDoor emphasizes its commitment to fully managed Amazon services for expanding private label brands globally. The website notes Amazon as an “endless opportunity,” citing that 63 percent of Amazon sellers embracing global expansion witnessed a surge in sales. OppDoor points out that brands with a multi-region presence achieved three times higher exit multiples compared to those operating in only one or two Amazon regions.
While Amazon is a primary focus, OppDoor states its intention to collaborate with other platforms such as Walmart, Etsy, and more, offering services related to marketplace operations and seller management.
It is important to note that the company is registered in Singapore and was incorporated in May 2021, initially operating under the name Three State Ventures Pte Ltd, which is Binny Bansal’s venture capital firm investing in various startups across sectors in India, including Curefoods and Scapia.
Crafting a Multichannel Symphony: The OppDoor Approach
Recognizing that Amazon is poised to be the linchpin of OppDoor’s client revenue, their strategy does not involve distancing but rather adding strategic layers. OppDoor is poised to focus on Walmart, an organic choice given its marketplace prominence. The objective is to establish a secondary sales channel, acting as a safety net for the predominantly Amazon-centric business model.
Data-Driven Expansion to Walmart
In a thorough analysis, OppDoor will delve into the search volume potential for each product listed on Amazon, aiming to expand to Walmart. While encountering fewer long-tail keywords compared to Amazon, the company will pinpoint broader keywords applicable to specific products. Based on this insight, OppDoor will strategically introduce selected products to Walmart, anticipating a noteworthy 10% incremental revenue boost for those items.
Google-Driven Visibility Improvement
Based on this insight, OppDoor will strategically introduce selected products to Walmart, anticipating a noteworthy 10% incremental revenue boost for those
Innovative Shopify Storefront Collaboration
For products gaining momentum through these campaigns, OppDoor will pioneer an innovative approach: partnering with their clients to establish a Shopify storefront. This strategic move is designed to redirect traffic from Google and various social media platforms to a dedicated Shopify website.
OppDoor’s approach signifies a nuanced understanding of the evolving eCommerce landscape, where the orchestration of multiple channels and data-driven insights will play a pivotal role in shaping the success of businesses venturing into the global market. As OppDoor embarks on its journey, it is poised to redefine the dynamics of eCommerce expansion through innovation, strategic partnerships, and a commitment to client success.
From Amazon to Pepperfry, the eCommerce industry thrives in India, especially in B2C eCommerce companies. In fact, India is ranked first in the fastest-growing eCommerce market globally, with an estimated market value of $16.6 trillion by 2022.
B2C means business-to-consumer, which refers to the business model where the companies directly sell their products to consumers. The market offering B2C services has gained speed in recent years. According to the report by Grand View Research, the B2C eCommerce industry is set to reach a valuation of $7.65 trillion by the year 2028.
This brings us to the article’s primary content, top B2C eCommerce companies across India. So, let’s get started.
When it comes to B2C eCommerce websites, Amazon tops the list. The company was initially started in the United States as an online bookstore and was later converted into a marketplace for other products. Initially, it was created as a platform where customers could purchase books on a wide range of subjects.
With time, Amazon grew into an eCommerce site with monthly visitors of over 322.54 million, as per the 2010 data. And it became widely popular in the Indian eCommerce industry. Today, the company reached out to a total of 89 percent of the Indian audience.
Flipkart
Founded
2007
Founders
Sachin Bansal, Binny Bansal
Headquarters
Bengaluru, India
Category
Ecommerce
Website
flipkart.com
Flipkart Website
Founded by two former Amazon employees, Binny Bansal, and Sachin Bansal, in 2007, Flipkart is a well-known privately hosted eCommerce website in India. After its highest acquisition of 16 billion in 2018 by Walmart, Flipkart now comes under the ownership of Walmart. The company owns 39.5 percent of the market share of the Indian eCommerce industry, with the most significant competition from none other than Amazon.
Flipkart gained massive popularity due to its Big Billion Days Sale, where it reached a large audience base by offering huge discounts on its merchandise of all categories. With a solid online presence, Flipkart is considered one of the best eCommerce websites following the B2C business model.
FirstCry
Founded
2010
Founders
Amitava Saha and Supam Maheshwari
Headquarters
Pune, India
Category
Online Baby Products
Website
firstcry.com
FirstCry Website
FirstCry is considered the best eCommerce platform for babies and children’s merchandise, following a B2C business model. The product quality and variety offered by FirstCry are excellent and worth all the praise. It provides more than 200,000 products from over 5,000 manufacturers. FirstCry was introduced in 2010 by Amitava Saha and Supam Maheshwari.
In addition to its eCommerce platform, Firstcry also operates physical stores across the country, which allows customers to experience its products before making a purchase.
The website has also launched its own private-label brands to offer quality products at affordable prices. FirstCry has over 400 outlets across India, covering cities like Hyderabad, Bangalore, Mumbai, Chennai, Kolkata, and many more.
Paytm Mall
Founded
2016
Founders
Vijay Shekhar Sharma
Headquarters
Bengaluru, India
Category
Ecommerce
Website
paytmmall.com
Paytm Mall Website
Yes, you heard it right. Paytm isn’t limited to digital payments and financial services; it has also expanded to eCommerce. In 2016, Paytm introduced an online shopping platform based on the B2C business model, Paytm Mall.
From all kinds of clothing to exclusive gadgets to home furnishing, you can find everything at Paytm Mall. As per the reports published by findly, Paytm Mall is estimated to receive 60 million orders in a month.
Paytm Mall offers high-quality products at affordable pricing. Plus, you can use different coupons for discounts and cashback offered by Paytm Mall.
Snapdeal
Founded
2010
Founders
Kunal Bahl, Rohit Bansal
Headquarters
Gurgaon, India
Category
Ecommerce
Website
snapdeal.com
Snapdeal Website
With an estimated monthly visitor count of 56.41 million, Snapdeal is considered an eCommerce giant with a B2C business model. It’s an online shopping platform with various products from different categories such as electronics, clothing, home decor, books, beauty, and many more. Among these, Snapdeal’s electronic category is the largest shopped one.
This eCommerce platform was launched in 2010 and has attracted top investors such as Softbank, Alibaba Group, and Foxconn.
Myntra is among the premier fashion, lifestyle, and home eCommerce platforms with a B2C business model. It has around 48.03 million monthly visitors. It earned impressive profit and popularity after the acquisition of Jabong.com, its competitor in the market.
Myntra is known for its fantastic collection of high-end fashion from top brands all around the globe and as per 2012 data, Myntra added more than 350 Indian and Foreign brands to its manufacturer’s list. Plus, it has many private clothing labels, such as HRX and Moda Rapido, which are exempted from expansion vastly.
The website is also a fashion retailer with a wide range of products from international to local brands in all sections.
Estimated Retail Ecommerce Sales in India in Million US Dollars from 2016-2022
1mg
Founded
2013
Founders
Prashant Tandon, Gaurav Agarwal, Vikas Chauhan
Headquarters
Gurugram, India
Category
Healthcare
Website
1mg.com
1mg Website
1mg is categorized as an Indian online pharmacy founded in 2015 by Prashant Tandon, Gaurav Agarwal, and Vikas Chauhan. 1mg offers a wide range of healthcare products including medicines, healthcare devices, health supplements, personal care products, and more. The website features products from over 3,000 brands and has over 2 lakh products available on its platform.
1mg also provides features such as online medicine ordering, diagnostic tests booking, and wellness package booking to provide a comprehensive healthcare experience to its customers. In addition to healthcare products and services, 1mg also provides health-related content through its blog and social media channels.
LimeRoad
Founded
2012
Founders
Prashant Malik, Manish Saksena, Ankush Mehra, and Suchi Mukherjee
Headquarters
Gurugram, India
Category
Fashion Ecommerce
Website
limeroad.com
LimeRoad Website
Headquartered in Gurugram, LimeRoad is a pretty famous fashion and clothing eCommerce website following B2C business models. The company was founded in 2012 with the specification of online shopping. It was founded by Prashant Malik, Manish Saksena, Ankush Mehra, and Suchi Mukherjee.
In its initial three funding rounds, the company raised 50 million USD. LimeRoad is the first-ever women’s social shopping platform in India. It also offers a wide range of categories dealing with men, women, and kids.
Shopclues
Founded
2011
Founders
Sandeep Aggarwal, Radhika Aggarwal and Sanjay Sethi
Headquarters
Gurugram, India
Category
Online Shopping
Website
shopclues.com
Shopclues Website
Shopclues is another online shopping company based in Gurugram, Haryana, India, founded by Radhika Aggarwal, Sandeep Aggarwal, and Sanjay Sethi in 2011. With revenue of above $40 million and 1080+ employees, the company has established a strong image in the marketplace. It’s a privately owned company that specializes in online shopping.
ShopClues operates on a marketplace model where it connects buyers and sellers on its platform. The website has over 5 crore products from 9 lakh+ merchants across 3,300+ categories. Apart from the regular products, ShopClues also offers several exclusive features like Sunday Flea Market, Wholesale, and IndiMarket which showcase products from small and medium-sized businesses in India.
Pepperfry
Founded
2011
Founders
Ambareesh Murty & Ashish Shah
Headquarters
Mumbai, India
Category
Home Decor and Furniture
Website
pepperfry.com
Pepperfry Website
Pepperfry is a popular eCommerce B2C website in India that primarily focuses on home decor and furniture. The website was launched in 2012 by Ashish Shah and Ambreesh Murthy. Pepperfry has become one of the leading online shopping destinations for furniture and home decor in India.
They offer products from over 10,000 sellers and has over 1.2 lakh products available on its platform. It also has more than 100 outlets across 57 cities in India. The website also has a feature called “Studio Pepperfry” which is a concept store where customers can get a hands-on experience with the products before making a purchase.
BookMyShow
Founded
2007
Founders
Ashish Hemrajani, Parikshit Dar, and Rajesh Balpande
Headquarters
Mumbai, India
Category
Online Ticket Booking
Website
bookmyshow.com
BookMyShow Website
BookMyShow is a popular eCommerce B2C (business-to-consumer) website in India that primarily focuses on providing online ticket booking services for movies, events, and other entertainment activities. The website was launched in 2007 by Ashish Hemrajani, Parikshit Dar, and Rajesh Balpande.
BookMyShow offers a range of services including movie ticket booking, event ticket booking, sports event ticket booking, play and theater ticket booking, and more. The BookMyShow website features listings of events, movies, and activities happening in various cities across India. They also provide reviews and ratings of movies, events, and activities to help customers make informed decisions.
Nykaa
Founded
2012
Founders
Falguni Nayar
Headquarters
Mumbai, India
Category
Cosmetics, Beauty, Personal Care
Website
nykaa.com
Nykaa Website
Nykaa is a popular eCommerce B2C website in India that primarily provides beauty and wellness products to its customers. It was launched in 2012 by Falguni Nayar. Nykaa offers a wide range of beauty and wellness products including makeup, skincare, hair care, personal care, fragrance, wellness, and more.
The website features products from over 1,500 brands and has over 2 lakh products available on its platform. It also provides content related to beauty and wellness through its blog and social media channels.
In conclusion, with the massive adaptation of machine learning, consumers are getting more personalized services from B2C eCommerce companies. The best thing about B2C websites is the level of convenience and security they provide consumers.
It shows products based on the previous purchasing history of the users to fulfill their unique needs. These above-mentioned B2C eCommerce websites are truly extraordinary with their services and products. And because of this only, the competition within the eCommerce industry is relatively high, which is also the reason for its growth.
FAQs
Which is India’s number 1 eCommerce company?
Flipkart is considered India’s number 1 eCommerce company with 39.5% of the market share from the Indian eCommerce industry.
Is Zomato a B2C?
Yes, Zomato is a B2C company.
Who is the father of eCommerce in India?
K Vaitheeswaran is considered the father of eCommerce in India.
What are B2C website examples?
Some of the B2C website examples are Amazon, Flipkart, Myntra, LimeRoad, Pepperfry, Shopclues, 1mg, Snapdeal, Paytm Mall, Firstcry, etc.
Just because of valuation, startups often take the limelight as unicorns even when they are losing hefty amounts of money. This may seem strange, but older businesses are not regarded as strongly as startups, and in most cases, these existing businesses are valued well below their genuine value.
Every day, businesses of every kind face an unpredicted plethora of threats. It is important to recognize that losses can be either caused by temporary (short-term or medium-term) or some continuous long-term issues.
Number of Funding Deals for Startups Across India from 2015 to 2022
Unicorns in India, or companies valued at $1 billion or more, are contradicting the traditional wisdom that valuations are based on future earnings. As their losses mount, private investors are compensating them with progressively greater values. While lots of businesses continue to lose money quarter after quarter, a select handful achieves enormous success and become national brands. The trick, of course, is determining which of these businesses will make the transition to profitability and blue-chip position.
Valuing a loss-making business can be a difficult task. A business with negative earnings or incredibly low earnings is considerably more difficult to appraise than one with positive earnings. In reality, rather than basic assessments, loss-making enterprises are valued primarily on hopes.
In this article, we are going to discuss why we see that startups with the most valuation have the least profit.
In simple words, startup valuation is the way of assessing a firm’s value, or valuation. An individual investor in a startup trades for a portion of the company’s stock during the seed fundraising round. This is why valuation is crucial for entrepreneurs since it allows them to determine how much ownership they must provide a seed investor in return for their financing. It’s also crucial for an investor, who needs to know how much of the company’s stock they will get in exchange for the money they put in during the early stages. As a result, startup valuation can be a deal-maker or a deal-breaker, which is why it does not include any speculation based on the valuation of other comparable businesses.
Furthermore, before assessing a firm’s real worth, creators must have a thorough understanding of how the entire startup valuation process works. If there is little to no revenue-generating, founders tend to quote an excessively high amount to investors to raise seed funding, so the expectations will be rather high. However, if a firm is unable to fulfill the lofty targets, it may have to secure funding at a reduced valuation in the next round.
This could backfire in the long term, and the startup or entrepreneur may have a difficult time persuading other seed financiers or companies to finance them. In contrast, if the business quotes are too low, it may wind up offering investors a larger portion of the company’s equity, which will be a negative factor.
Startups are not anxious about their losses or lack of profit-making capacity. Instead of focusing on this, they continue to advertise their long-term vision of expected profit generation. Founders of such startups tend to showcase their different techniques, technologies, and solutions to attract investors. They are good at storytelling and selling.
Investors get inspired by the founders and their exclusive pitch and make startup investment risks with the hope of gaining profits in the future. Here, both the startups and the investors work based on future assumptions. The hope remains on the fact that the startup would be able to kill its competition and create its market. But when reality hits and things do not go as per the plans, these startups with high valuations (because of the huge investments) start going low on profit-making.
It is the brand name and its worth that attracts investors to invest, taking the valuation of a startup to another level. For example- Groww (an investing platform), even with the least profits, raised a funding round in October 2021, which skyrocketed its valuation to $3 billion. However, Zerodha (financial services company), one of its biggest competitors, is highly profitable yet its valuation stands lower than Groww.
According to Kunal Shah (CEO of CRED), “Unicorn tag, high valuation are all vanity metrics till the company delivers profits”.
The discounted cash flow is the explanation for this unusual valuation. The discounted cash technique is used to value and evaluate the worth of the startups. When valuing a company, the discounted cash flow technique is used to forecast cash flow as well as the anticipated rate of return on investment. Businesses that are inevitably destined to fail in terms of income flow generation are given a higher discount rate.
Such startups simply continue to be overvalued by executing a couple more spectacular funding rounds. After which the investors understand or anticipate that they’re not going to be successful after analyzing the stats and other relevant information and pulling any additional funding. These businesses will likely close or downsize their operations, leading to widespread job losses and a repeat of the 2008 financial crisis unless they figure up some sort of magical formula.
Cases of High Valuation Low-Profit Startups
Zomato
The revenue of Zomato has soared by a significant percentage year over year, and losses have also risen by a substantial proportion. However, when you look at the overall picture, Zomato is present in 24 countries, including India. Furthermore, it has a monopoly in Restaurant Search in India, despite the presence of competitors making it more likely to succeed. Advertisements, classifieds, internet shopping, and consulting are further sources of its revenue.
Revenue and Loss of Zomato from FY 2018 to FY 2022
In FY22, Zomato recorded a revenue of $505.76 million, whereas its loss stood at $145.92 million. As a result, instead of seeing losses as a determining factor in funding, we perceive its brand value.
Flipkart
Although this is one of the most difficult startups to evaluate, the basics stay the same. Flipkart is attempting to instill in Indians the habit of shopping online. This is also being funded by investors. Online retail sales in India currently account for only 1% of total retail sales. If it were to rise to even 7-8% (as it is in the United States), E-tailer revenues in India would soar by a significant percentage. This is the expectation of investors.
In FY22, Flipkart India’s revenue reached $6.034 billion, and losses widened by 40% to $410.75 million.
Ola/Uber
We usually went down, asked for multiple buses and taxis, and got refused by a majority of them when there was no Ola/Uber. But, thanks to Ola, we can now book a cab from the comfort of our own homes or offices and only get out when they arrive. It has made our lives more convenient with the added benefits of being cashless and air-conditioned. As a result, we have developed a strong trust and habit in them, which is exactly what they desire.
Revenue and Loss of Ola Cabs from FY 2017 to FY 2021
In FY21, Ola Cabs’s revenue was $125.41 million, and its loss was $101.27 million.
These are some of the names that stand in full pride with huge valuations as they have gained the trust of investors as well as the masses but at the same time continue to make lesser profits.
Conclusion
A startup’s worth is based on its potential to generate future cash flows, how much potential it has for future aspects, and keeping other essential factors constant. Apart from revenue generation, job generation statistics also matter. Investors believe that the startup they are investing in will grow to be a giant one day and that they will be able to make a profit of nearly ten times their initial investment. This risk allows them to stay competitive and keeps them in the play. Therefore, when valuing or comprehending startups, their prospects are perceived rather than the losses.
FAQs
What is startup valuation?
It is the process of evaluating a company’s worth in the market based on different factors like profit-making capacity, growth potential, market conditions, etc.
What are startup valuation methods?
Popular methods include:
Berkus Approach
Market Multiple Approach
Risk Factor Summation Approach
Which is the highest-valued company in India in 2022?
Reliance Industries is the highest-valued company in India in 2022 with a $202 billion valuation, followed by Tata Consultancy Services ($139 Bn) and HDFC Bank ($97 Bn).
Are all Indian unicorn startups profitable?
Only 23 out of 100 Indian unicorn startups are profitable. These include Mamaearth, Lenskart, Nykaa, Zerodha, etc.
If you are looking to start your own e-commerce business in India like Amazon or Flipkart, then this is the way to go. To start with, eCommerce is an online process of buying or selling goods and services. There is no paperwork involved in making any transaction here.
One of the best things that most of us like about an e-commerce startup is that we can update and modify it the way we want and make it attractive and appealing to the eyes of the audience. Your customer will have access to your services 24×7 and you don’t need to come out of your door for marketing and other stuff if you are doing it at a small level.
According to a report, in 2019, eCommerce sales accounted for 14.1% of all retail sales worldwide. However, there are some things that you need to care about in your eCommerce business plan.
How to Start an eCommerce Business in India? (A 10-Step Business Plan)
Starting an eCommerce website might sound challenging, but with this easy 10-step business plan, it would hardly be tough. So, let’s dive into the steps:
Step 1: Define your business name
Business names are always important as they give you an identity after identifying what you want to sell. A business name will be the legal identity of your business. This opens a room for marketing your product with ease. The name that you choose should be simple and unique. It is always better to research extensively before you decide upon a particular name for your business. This will let you be safe and secure, and thus, is really important for everyone who would be starting an eCommerce website.
Step 2: Set a domain name
Ideally, there is always diversity in business. The business name acts as the domain name. A domain name system (DNS) stipulates the website address that your business wants to keep.
One of the important factors for an eCommerce business plan is awebsite. A website can be useful in developing different marketing strategies. It acts as a point of contact between you and your customers.
A website is accessible to many people at any given time and creates a climate of trust (credibility). Churning out a website is really convenient as it tells the customers that you exist. Furthermore, the website and the domain name are some of the core steps to proceed with before one can go about launching an eCommerce business.
Step 3: Identify the type of business and register
People engage with businesses as sole proprietorships, partnerships, or cooperation. Each of these has an advantage and disadvantage attached to it. For example, operating as a sole proprietor always subjects you to numerous risks.
You need to weigh before deciding upon a particular type of business that suits you. The income removal system (IRS) allows you to file the structure of your business on your own or get a different filing company to help you.
Step 4: Employer Identification Number (EIN)
You can not operate an e-commerce business without a bank account. To get a bank account you need for your business you need EIN. This number you are given acts as identification. You use it to file taxes for the business. It is always a requirement whether you will operate alone or employ people.
Step 5: Obtain legal documents
Every country has its own policies and procedures that every citizen must adhere to. This is also one of the things you must keep as a priority while creating an eCommerce business plan. If you fail to do that, the government has the mandate to declare your business illegal, after which numerous penalties might be imposed.
Licenses for the business and work permit should be obtained. Confirm with your state what type of taxes you are required to pay in order to operate. Also, you need to Apply for Goods and Service Tax (GST) certification and a Shops and Establishment Licence.
Step 6: Source for vendors
It is not possible to operate without vendors. Everyone needs to identify and keep in contact with different vendors. This way you can derive the best quality and prices for the materials you need to make your products. Conduct a thorough and serious search of the vendors to help you identify who you want to work with.
Step 7: Early marketing
Media platforms are paramount in e-commerce. However, it is also necessary that you have an eCommerce business plan prior to that. Alert customers that there is something good coming up so they can create interest to know. You can even decide to introduce blogging as a tool.
Step 8: Get effective software
E-commerce cannot work without making use of technology. Put every system in place before launching the product. Effective software is what you simply cannot compromise when it comes to building e-commerce websites in India.
Step 9: Keep a smart inventory
Inventory will help you track the information that you need. Ensure the warehouse (store) has enough products so that the customers don’t miss out on what they want. You may not be in a position to tell what will be needed and when but is always safe to keep a decent stock. This will help keep track of the orders you make in the future.
Step 10: Be compliant
Always be smart with deadlines in terms of taxes, licenses and permits needed. Always ensure you abide by the law of the land. Staying compliant is the key to starting an eCommerce store or an online business and making it successful.
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How to Build an eCommerce Startup?
The Ecommerce industry is on the boom for the past few years, and why not? It is ultimately a sector with big opportunities and low barriers to entry. The total valuation of the e-commerce industry in India was last recorded at $46.2 million and is expected to rise to $188 billion by 2025. Such a sector that is ever so growing, certainly consists of a lot of opportunities.
Currently, there are hundreds of e-commerce sites selling products and services and thousands are on the way. Probably you also want to have one. Well, the e-commerce industry is so dynamic now, that you need to be agile and alert. So, keep monitoring the activities, events, discussions, and changes going on in your niche.
Now e-commerce is not about selling a product but a solution. Your potential customer must see the clear benefit of buying from you. Here are some tips to follow if you are starting up or already have an existing startup in the e-commerce domain.
Find a niche
If you get an idea for e-commerce, there is a fair chance that many startups are operating in that niche and many are coming up. That is why it is important to break the initial idea, segment them a little further or get a niche that is not explored yet and work on that with full focus.
If you think you can compete against Flipkart or Snapdeal that’s not going to happen if you plan to start with the same business model.
Take sandal. When the company launched, it was an online portal for deals and coupons. This was a very focused play. They didn’t immediately start selling physical goods. Make your unique selling proposition, find your target “janta” or customers, and sell your product to them.
Experiment
As you have started out, the world seems very new to you. Nobody except you can tell what works best for you. So, experiment with different Pitches, Distribution channels, and more. Do this until you find out a solid sales strategy.
Listen to your customer
As it is always said worship customers like gods. Always remember that if there is any service you want to provide, then that should always be a customer satisfaction service. Your behaviour towards the customer after the sale would make all the difference.
This will help you in customer retention and thus make more sales. Once a sale is made. Talk to them, get feedback and see what changes they want. Even if it doesn’t comply with want you want just change it.
Learn from the mistakes of competitors
Do you have lots of competitors? Having too many competitors is not so good news for businesses but every bad thing has got something good in it. So, if you have quite some competitors already in the same space where you would be starting your own eCommerce business, you can try to analyze their website design, pricing, and marketing strategies on a regular basis to get useful insights for future action. Go through their social media profile to see what activities have helped them gain traction a lot and what has failed for them. In this way, pick up all that they have done good, and try to avoid all the mistakes that they have done.
Use digital marketing
74% of adults who are online, use social networking sites, and among them, it has been found that 71% of online adults use Facebook. Being a startup you don’t have much marketing budget. Here, starting with social media platforms for marketing purposes will indeed be of great help. Optimising the content and regularly sharing them on social platforms certainly is rewarding for brands and businesses. This will not only let you reach to large audience economically but also help you to get analytics to learn about the users. It is also a great way to listen to what customers are saying about your brand.
Number of social network users in India from 2015 to 2020
Operation
Make sure you always have enough inventory of the highest-selling product. Make sure that you keep a track of all the products that belong to the highest-selling and lowest-selling categories. Figure out what is making the highest product sell the highest and what makes the others the lowest-selling products. This will help you a great deal!
Looking at what similar companies are using. Add a mascot on the site that guides the users about the site and the products, is an interesting way to get the attention of customers (like Zendesk). Use only those plugins that are necessary.
Hire trained customer care executives to resolve customer queries over calls and emails. A toll-free number and support email is crucial too. Solve the problems that the customer is facing, to ensure the efficiency of the website.
Content marketing
The content is important for an e-commerce website and is good for marketing the brand. Putting up a blog or posts will surely bring up more traffic than ever. Content marketing will stand as one of the primary requisites as soon as you start an eCommerce store or an eCommerce website in India.
Social Media Marketing
Social media is the key to climbing the ladder and getting the exposure one wants in the public eye, so creating social media accounts is the key to helping the brand reach the eyes of the world. Keep the followers updated with new products and give ways to get more followers. Meme marketing is also a great way to engage your customers (Millennials).
Influencer’s utilization
The influencers are the best people in the game especially, in terms of product branding and making the future of a product. Hence, hire some influencers who are the best in the marketing game, which your brand focuses on, and pay them to put the ad on their social media. This will help increase your brand reach, thereby helping it to reach thousands and millions, who would then be able to see what your brand and its products are all about and people will pop up on the website for sure, giving you more website traffic and multiplying your revenues for sure.
How to Compete in the eCommerce Market?
Every day is new and brings changes in people’s needs and desires. Luckily, this is where small and upcoming startups can still win in the midst of other eCommerce giants. Here, is how to compete in the E-commerce market.
We are aware of how Amazon and eBay have driven many small and medium companies to extinction. But the other side of the reality is also that new interventions are always abundant and there’s always a new idea, product concept, or methodology that can topple the market leaders as we know them, or at least create a comfortably sweet spot in the market for themselves-which is just where your startup needs to reach.
If your startup is introducing a new product or service altogether, there is a very different approach you might need to take as compared to a start-up that is re-offering the existing product or service to bridge the demand-supply gap.
Be very clear as to who you are, what your offer is, and what your target is. Make sure that your core team and your entire organization have this understanding to ensure that the combined effort of the entire workforce maximizes the results.
It is a hopeful time to be as Amazon and the likes do cater everything to everyone. But the digital age has made it possible for everyone to co-exist as people’s tastes are ever-evolving and start-ups targeting the niche will be able to carve out their own space.
Read on for sage advice on how you can stand out in a crowded marketplace and reap the maximum benefit of being a newcomer to the industry.
Create Your Own Service
Your chance to be victorious in the game is to be an innovator and make your own market rather than depending on the existing marketplace. It is a harder approach to what you are already doing but will take you miles ahead of others.
See a Need, Fill a Need
We have seen time and again that certain brands launch big after years of testing and planning, however, once the brand is not received well they start to fizzle out. The ones who make it successfully are often seen using the feedback from the customers and dedicating some resources to perfecting common complaints and difficulties consumers are experiencing. They don’t quit, rather, they use real-time data as the major source of what the next step is inspired.
In fact, building on what the customer conveyed as your shortcoming can also forge a trustworthy and loyal bond with them, which is a great way to market yourself. Instead of resisting the feedback, be open to them and make your way to their hearts by listening and acting on it. Create your own trend rather than following the norm.
Champion the Mobile App
Make sure that your customer is having a seamless mobile experience on your app and is likely to check out under 60 seconds after preparing the cart or choosing the service without any in-built interruptions. Fast times require faster solutions! In addition, make sure your startup belongs on platforms like Snapchat and Instagram that have made the visual world fun and directly accessible.
Design Thinking promotes that design is an elementary part of any system. Design your product, service, or systems within the organization always prioritizing the user needs and user practices.
Get inside not just the mind of the end-user, but also their daily lifestyle, their influences, their dreams and aspirations, their environment, and their culture, depending on the nature of your services.
Customer is more likely to trust your brand if they think you thought of them specifically while making the product or service. This gives them confidence that you will understand them and will stand as a good choice for them.
Better Incentive Programs
Your incentives can come in the form of discounts, rebates, points earned toward a discount, points earned toward prizes, or any of many other plans. The worst-designed incentive plans have ambiguity in the stated rules.
An incentive is likely to shape your customer’s behaviour and drive them to your desired action. These incentives are thus, really valuable for an eCommerce company, especially if you are wanting to start an online store in India. If they are rewarded for their purchase, they feel like they ‘earned’ it. Keep a close eye on what other e-commerce companies in India are offering and if you are to compete with them, you must outdo their offer every time.
Better Customer Service
A common Amazon trait that has made it wildly popular in the e-commerce service is how they value each customer. Similarly, if you also want to start an eCommerce business, then you must first start to value each and every customer the same. While you can’t crush e-commerce giants given that they have bigger marketing budgets and bigger control of their product lines, operations and sales, it is certainly a trait you can imbibe in your company. Each satisfied customer means five people who will hear about you from him, which is great marketing for you at no actual cost.
Customer Data Is The Key to Ultimate Business Growth
A former Amazon company worker stated that Amazon has the ability to track both what people are buying as well as what they search for and can’t find.
This is a part of their success story. Companies that use customer data to better their practices are more likely to increase their sales and their gross margins than those who ignore the data.
Even if you don’t have big budgets to acquire data like e-com giants, do make absolute use of the behavioural data you already have in their database to improve customer satisfaction and customer retention.
How do eCommerce Sites Make Money?
Everyone wants an extra income to meet their needs and upkeep their standard of living. Furthermore, buying and selling goods and services via the Internet is the new trend to earn money, and the websites that make them possible are none other than Ecommerce websites. The Ecommerce websites are offering a free platform for the sellers and the buyers to get in touch with each other.
One can easily list their products on e-commerce websites and potential buyers can buy the products hassle-free sitting in any part of the world. The whole online buying and selling chain appears to be a very easy and economical process.
Although, you must have wondered as they offer free services to sellers and buyers thenhow these e-commerce websites like OLX, Quikr, Craigslist, and Gumtree make money online.
E-commerce websites, such as OLX, Quikr, and other leading sites provide an online portal to advertise your product or service offerings and find the buyer for them.
Almost all emerging e-commerce websites offer free services to users. However, they still make high-tech TV commercials and disburse lucrative salaries to their employees. How? So, let’s get the answer by analyzing the revenue-generating strategies of a few leading e-commerce websites and comparing their revenue plan with others.
Olx
OLX is one of the most popular and well-structured e-commerce websites. It offers a variety of features to its users, such as sellers can directly chat with a buyer, can easily bargain, etc. eBay is one of its competitors of OLX. OLX opts for the following methods to earn money:
Google AdSense Banner Ads
Google offers to all bloggers and website owners a very easy platform to get advertisements on their sites. Google AdSense is a platform where you can register your website and after verification, Google will show related advertisements. Hence, OLX effectively runs Google ads to reach its target audience. The earnings through ads depend, upon the number of clicks they get which is called CPC (cost per click model).
Featured Listing
OLX offers a featured listing option to the sellers. Featured links are those links that you see on the top, whereas, in a normal listing Ads are placed in OLX depending on how recently the Ad has been placed.
Featured Ads will always appear on top of the list irrespective of any factors. Ideally all such should be mentioned as featured/sponsored/ads so that users don’t get an illusion. In a featured listing, your ad will show up at the top of the search list and your ad will be shown first to the buyers whenever they search for anything on OLX. The sponsored links appear depending on the keywords targeted by the advertisers. Being at the top of the list gives advertisers a way to get more leads.
Quikr
Quikr is yet another e-commerce, which is very popular in India and somehow looks and works similarly to OLX. While the featured listing is one way to make money Quikr also follows a different route here.
They also generate revenue by generating leads for businesses. It makes a gainful amount of money for Quikr. Recently Quikr has acquired a few startups to diversify in different fields like Jobs, spas, and salons where they provide leads to these service providers.
Craigslist
Craigslist is also a popular rental listing website. It is mainly popular in the USA. But the company doesn’t earn as much revenue when compared to other websites. The company only makes revenue equal to its operation charges.
It charges $10 for a rental listing in New York and $25 for a job listing to occur in any of the major U.S. cities. If in the San Francisco area, you need to pay a $75 fee for a job to be listed.
The company is trying to consider Google AdSense and paid advertisements to generate more revenue, but it is still worried about the quality and clutter on the website due to ads, which is the main priority of the company.
There are other similar eCommerce websites present, like Gumtree and BookSellBuy. They also earn through a basic business model, that is, by providing premium membership Ads wherein the features depend on their own model, by featured ads and paid listings. So, almost every website uses paid ads to generate money.
Conclusion
Now, building an eCommerce website is the trend. It definitely takes a lot of effort and hard work, but once created and branded properly, it will surely open a whole lot of doors for growth. It is not an easy task to run an e-commerce business in India in the current age of competition. Starting an eCommerce company or an eCommerce business in India is certainly achievable if one has the focus and grit to understand the customer and the people who are in the organization.
Use your data efficiently and always make the customers happy at the end of each transaction. Comment on your favourite e-commerce site or your story of launching your own e-commerce site in the comment down below.
FAQs
What are the 3 types of e-commerce?
The three types of Ecommerce are Business-to-Business (B2B), Business-to-Consumer (B2C), and Mobile Commerce (M-Commerce).
What is the future of e-commerce?
The eCommerce industry was last valued at $46.2 bn in 2020 and is expected to rise to $188 billion by 2025, and would soar to become $350 billion by 2030.
Which is the largest e-commerce company in the world?
Amazon is the largest e-commerce company in the world.
How much does it cost to start an e-commerce business in India?
To start an e-commerce business in India you need approximately at least 5 – 10 lacs of investment.
How to start an eCommerce website, store, or eCommerce business?
Whether you want to start an eCommerce store/site or an eCommerce business, it is evident that you first need to research the industry and the market potential before starting up. Starting an eCommerce company in India would need you to:
Build a fast, comprehensive, and informative website
Create a viable business and revenue model
Decide a relevant domain name
Host the website properly
Market your website, its products, and services
Monitor the performance
What are some of the eCommerce business ideas?
Some of the best ideas if you want to create an eCommerce website or an eCommerce business in India would include grocery delivery, cosmetic and beauty products eCommerce business, refurbished or second-hand products business, fashion, jewellery, food tech and more.
What are some things that you should never forget while trying to set up an eCommerce business in India?
Setting up an eCommerce business in India is the dream of many, but only some eCommerce businesses in India actually see the light of day. Here are some of the easiest steps that you need to remember while setting up an eCommerce company in India:
Chalking out a workable business and revenue model
Branding your brand well
Registering the business
Opening a bank account and linking the business to the same
Creating and launching a simple but secure eCommerce website
With growing internet penetration and disposable incomes, the people of India are experiencing a massive change in their shopping habits. People from all fronts are using their smartphones to buy products and items. With the big three — Amazon, Walmart, and Alibaba, entering the Ecommerce sector of India, the market is slowly maturing and expanding its footprint to the most remote locations across the country. This market for Ecommerce in India is further estimated to witness another transformation with the spread of the all-new ONDC concept that is still new in its approach and promises to make ground-breaking changes.
According to an analysis, the Ecommerce Industry in India grew from 4% of the total population in 2007 to around 40% in 2017, clearly indicating the rise of the internet era in the world’s fastest-growing economy. The growth of the Ecommerce market in India is expected to further be registered at around $188 billion by 2025. This industry would again rise to reach $350 billion by 2030, as per the latest statistical reports. This internet boom is directly proportional to the emergence of Ecommerce in India and other internet-based domains.
WIDGET: leadform | CAMPAIGN: undefined
This post analyzes the current scenario and the future of Ecommerce in India.
Projected Ecommerce Revenue of India from 2017-2027
This success story started in 2007 with the inception of India’s most successful startup, Flipkart. Initially, companies found it tough to encourage people to shop online but with advancing technology, logistics, and payment methods supported by various offers and sales, people slowly drifted to this convenient mode of online shopping. Internet penetration and easily available data, fuelled by the low costs were and continue to be the most prominent factors encouraging this trend.
Ecommerce in India is expected to touch $200 billion by 2025 from the figure of around $40 billion in 2017. The internet economy, on the other hand, is expected to hit $1 trillion by 2030, majorly riding on the Ecommerce wave. Seeing this potential, Amazon, Walmart, and Alibaba started heavily investing in India and building a strong presence. Various domestic players like Snapdeal, Shopclues, Infibeam, etc. are also a part of this organized and exponentially growing Ecommerce segment in India. Though some of them might not be standing tall enough at the present moment, they always have a chance to bounce back though. Also, as a result of the domain of Ecommerce being broad enough to nourish many other subdomains, the Indian ecosystem of Ecommerce has seen the growth of both men and successful women entrepreneurs, with many more opportunities ahead.
Growth Of Amazon In India
Annual Net Sales Revenue Worldwide of Amazon from 2004 to 2021
Amazon expanded its footprints in India by promising to invest $5 billion, and until now it has pumped in more than $6.5 billion. These investments are being used for expanding its portfolio by bringing various sellers onto its platform, building and leasing warehouses for storage, improving logistics, offering heavy discounts to acquire new customers, and foraying into new verticals like grocery and payments wallet.
In 2017, Amazon’s founder Jeff Bezos stated that Amazon’s app was the most downloaded shopping app in India. Moreover, the company’s loyalty program—Amazon prime—was adopted in India at a much faster rate than in any other country. Its international losses as of April 2018 were $622 million and the revenue was $14.08 billion, whereas a year back the figures were, $481 million and $11.06 billion respectively. Amazon.com had $469.80 billion in revenue in 2021. Amazon is also focusing on improving its smart AI-based speaker, Amazon Echo. Alexa, Amazon’s voice-controlled personal assistant, is being trained to understand and focus on the Indian dialect and vernacular languages.
Amazon now has options for Hindi, Tamil, Telegu, Kannada, Malayalam, Bengali, and Marathi on its website and app to conquer customers from tier-2, tier-3, and rural areas where English is not widely used or taught. With a growing focus on improving customer service through setting up various fulfillment centers and faster logistics, Amazon is working to counter its local competitor Flipkart which was bought by Walmart and Paytm Mall. It is going to provide drone-based delivery very soon. With its increasing investments despite heavy losses, Amazon strongly believes that today’s investment of Re 1 will yield returns of Rs 100 tomorrow.
Revenue of Flipkart Private Limited between Financial Years 2014 and 2022
On the other hand, Flipkart is a successful domestic Ecommerce player in India. Initially, it had its share of struggles in bringing sellers and buyers on its platform while dealing with the challenges of logistics and maintenance of warehouses. But with grit and hard work, Flipkart has been successful in bringing a revolution that changed the face of the startup ecosystem in India.
It was the first Ecommerce company to introduce the system of cash on delivery, being mindful of the reluctance people faced while using their cards online. It also accomplished the task of setting up its own logistics unit, Ekart, along with various warehouses for storage and faster deliveries. Just like Amazon, Flipkart’s founders also started their startup by selling books online and slowly scaled their startup to various segments. It has also acquired various startups like Myntra and Jabong in the fashion segment, and PhonePe to delve into the mobile wallet industry. As of FY2017, it held around 45% of the total market in India, with losses of about Rs 8771 crores and revenue rising by 29% to Rs 19,854 crores. Though the market share figures changed slightly, Flipkart still maintained a lead over its counterpart Amazon in terms of market share, which was reported to hold 31.9% market share over the US-based Amazon, which held 31.2% of the market share in 2020.
Flipkart also launched its smartphone segment under the name ‘billion’, and also forayed into the electronics segment under the name MarQ. It is even venturing into the untapped potential behind the furniture segment. The basic reason behind launching an in-house brand is to attain profitability; many experts say that in-house brands will ultimately become the backbone of Ecommerce. Success was not easy for Flipkart. Ideas like trying to turn Flipkart into a mobile app completely didn’t go down with customers, and there were other failure stories as well.
Flipkart was acquired by the American-based supermarket giant Walmart for $16 billion in 2018. This led to a growth in Flipkart’s valuation, which reached $21 billion. This deal was a win-win situation for both as Walmart got a 77% stake in expanding itself into the world’s new Ecommerce battleground, and Flipkart got ammunition in the form of investment and equity to counter Amazon. It eventually began to launch numerous programs like the loyalty program, and Flipkart Plus, where users are provided with free delivery and points. It also has a Flipkart affiliate program where you can become a partner and earn money. These points can be further used to redeem offers on platforms like Bookmyshow, Zomato, Hotstar, etc.
Flipkart launched its refurbished marketplace, 2gud.com, after parting ways with eBay India. With the competition getting tougher every day accompanied by growing market size, it remains to be seen whether Flipkart will be able to maintain its supremacy. No matter what, Indians will always be proud of Flipkart as it changed the way for the average Indian shop.
The third dimension of Ecommerce in India is Paytm Mall and other small players. After the fall of Snapdeal, Paytm Mall (started in 2017) was quick enough to conquer the third spot in the industry. Focusing on its Online to Offline model (O2O model), which allowed consumers to avail of online discounts and offers in Offline partner stores, it established a niche in this particular segment.
Alibaba and Soft Bank invested $356 million in the company. Alibaba took a stake of 28.34% and Soft Bank 19.86%. After this valuation of the company reached $2 billion. It reported annual gross sales worth around $3.5 billion in FY18 and earned operating revenues of $102.97 million in FY19. It reported $34.72 million in revenue from operations and a $17.48 million loss in FY22.
Short-term visions, lack of experience, and strategic setbacks led to the fall of the company. Alibaba and Ant Financial sold their stake at just $5.17 million and backed out of the company. According to reports, its valuation dropped from $3 billion to $13 million in March 2022. Paytm Mall can make a comeback through ONDC.
Another small and promising player was Shopclues, which had been successful in attracting customers from Tier-3 and Tier-4 towns, clearly indicating its difference in thinking from Flipkart and Amazon. It consisted of various small sellers on its platform, selling quality goods at a cheaper price. This business model attracted people from various rural areas who had low disposable incomes compared to their urban counterparts. According to a ROC 2018 filing, it was revealed that Shopclues’ revenue increased by 60% to Rs 180.3 crores, and losses came down by a massive 40% to Rs 332.65 crores. It also hinted at profitability in the coming quarters. However, the promising unicorn, which turned the fourth Indian unicorn startup in January 2016, led by Radhika Ghai Aggarwal and Sandeep Aggarwal, headed only towards nothing.
Conclusion
Many people from the industry feel that the current Ecommerce ecosystem in India (consisting of both the marketplace and inventory type) is less than 5% of its actual potential. With this industry growing exponentially, many small and big players feel that there are more horizontals and verticals which are yet to be explored and organized. Myntra, IndiaMart and Nykaa are among the fastest-growing Ecommerce players in India. The Ecommerce segment will be imperative in pumping up the Indian economy and boosting employment rates.
FAQs
What is the future of Ecommerce in India?
As per predictions, the Indian Ecommerce market will increase by 21.5%, reaching $74.8 billion in 2022, and it will reach $350 billion by 2030.
What is the present scenario of Ecommerce in India?
Ecommerce has transformed the way business is done in India. The Indian Ecommerce market is expected to grow to US$ 200 billion by 2026 from US$ 38.5 billion as of 2017. Much of the growth for the industry has been triggered by an increase in internet and smartphone penetration.
What is the market share of Ecommerce in India?
Growing at an exponential rate, the market value of the Ecommerce industry in India is approximately $88 billion in 2022.
Which is the biggest Ecommerce company in India?
Amazon India is the biggest Ecommerce company in India.
Do you want to buy yourself the best products and save money at the same time?
If yes, then you should install these chrome extensions that are specially made for shopping.
Using these extensions you would be able to analyze the price fluctuations of the product over a period of time and get exciting coupon codes that maximize your savings.
Without further ado, let’s see the best Chrome extensions to help you save money when shopping online.
Now, I am going off-topic but I want to tell you the possible reason why PayPal paid such a humongous money to acquire Honey.
If you are not interested in knowing the reason jump to the features part.
Now, let us first understand all the functionalities of Honey. This will help in finding out why PayPal bought Honey.
Honey at its core provides coupons to its users and also tells you the best deals on other sites.
For example, if you are buying products on Amazon if the extension finds a better deal on Nike it will tell you to buy from Nike to help you save the maximum amount of money.
Secondly, they have tied up with 30,000 merchants. So, when you are buying from Amazon if the extension finds a better deal with another merchant it will notify you.
Honey also has a mobile app through which users can add products from different retailers to their cart and pay for them all at once.
So, instead of using the Amazon app for shopping, you can directly use the Honey app to buy products from Amazon.
PayPal as we all know is an online payment system through which you can pay money. As you can see PayPal is at the bottom of the funnel.
People only use PayPal at the end of their buying journey.
Acquiring Honey allows the company to move upwards in the consumer’s purchasing decision.
Secondly, PayPal could integrate Honey with its child company, Venmo which is a digital wallet through which you can pay and request money from your friends.
The only difference between them is that PayPal is targeted toward businesses while Venmo serves personal transactions.
So, PayPal can integrate Honey with Venmo and allow their customers to buy products from the app itself.
Features:
The extension will find the best deals from 30,000+ sites and apply promo codes automatically at checkout.
You can add the items to the Droplist and Honey will email you if it detects a price drop.
The extension gives you the lowest price at Amazon factoring in estimated shipping costs and Prime status to help you save maximum money.
See current and historical pricing.
Get cash back.
How to Use Honey and Save Money When You Shop Online
FlipShope
Chrome Extension
FlipShope – Price Tracker Extension
Website
flipshope.com
Users
80,000+
Ratings
4.6
FlipShope Extension
FlipShope is a comprehensive shopping chrome extension that you will enjoy using.
It applies the best coupons and promo codes available on your shopping platform.
And also works as a reminder of the price drop on desired products in the coming days.
If you have your eyes on something particular and you are waiting for the discounts, surely you can take help from FlipShope.
Features:
Track price fluctuations using the historical price graph.
Add the products that you want to buy to the watchlist and the extension will notify you when their price drops.
If you buy products from Flipkart then this extension is a must-have.
They allow you to have maximum savings by providing you with the complete details required while shopping including things like price comparison, coupons or promo codes available, and cashback.
Features:
See the product’s price history for 3 months.
Compare prices with other stores.
Get an alert via email when the costs of your favourite products drop.
Automatically apply coupon codes at the checkout.
Get coupons and free shipping codes.
Displays user ratings scores which help you in deciding if the product is worth the purchase.
If you wish to be notified of the deals and price changes each day, Keepa can help you with your demand.
It catches the price change in any of your preferred products to get you updated while also mentioning the lightning deals of every day.
Features:
The extension shows you the price history charts for over 2.5 billion Amazon products.
Find products with the highest drop in price.
Import your whole wishlist.
Gives you the best deals every day.
CouponDunia
Chrome Extension
CouponDunia Shopping Assistant
Website
www.coupondunia.in
Users
5,000+
Ratings
4.1
CouponDunia Extension
Using this extension you will get cashback, coupons, and the best offers all in one place.
It allows the easy method of price comparison while behaving as a shopping assistant that will cover up your cashback and coupons for you.
Features:
Get cashback alerts when you shop online.
View cashback rates and similar offers.
Receive real-time cashback status updates.
Automatically apply coupon codes at the checkout.
Capital One Shopping
Chrome Extension
Capital One Shopping: Add to Chrome for Free
Website
capitaloneshopping.com
Users
7,000,000+
Ratings
4.8
Capital One Shopping Extension
This extension won’t work for Indian users but, if you live in the United States then the extension will solve many of your shopping problems.
Using Capital One Shopping you can find coupon codes, compare product prices among different e-commerce sites and receive gift cards.
Features:
It helps you to save money by automatically searching and applying the best coupon codes at the time of checkout.
Compares product prices including the shipping costs and membership pricing with over 30,000 other retailers.
When you shop using this extension it gives you Capital One Shopping Credits which you can redeem for gift cards at top retailers like Walmart, eBay, and many more.
To use this extension you don’t need to be a Capital One customer.
Conclusion
We hope that by using these extensions, your shopping experience will get smoother and more fruitful.
If you use these extensions, you don’t have to waste your precious time in finding the best deals and coupon codes.
Everything gets automated!
Since these Chrome extensions are very easy to use, you can start buying products right away.
FAQs
What app is better than Honey?
The alternative to Honey is Coupons at Checkout, Shopper.com, and Wikibuy.
What is a chrome extension with coupons?
Chrome extensions with coupons are the Google Chrome Extensions that helps shopper by providing them with different coupons that can be applied while checking out from the shopping websites in order to save some money.
What is the best browser for shopping?
Some of the best browsers for shopping are Firefox, Google Chrome, Opera, and Microsoft Edge.
Are shopping browser extensions safe?
There is no particular answer to this. For consideration, many browser extensions are safe to use. Whereas on the other side of the coin, there are malicious extensions also found on the web.
Open Network for Digital Commerce (ONDC) was formed on 31st December 2021. However, the initial pilot phase of this program was launched on 29th April 2022. The target behind the introduction of this platform in India is to bring scalability and accessibility to the field of e-commerce.
The initial idea of ONDC came from the Piyush Goyal-led Department for Promotion of Industry and Internal Trade (DPIIT).
The project is moving forward under the leadership of T Koshy (CEO), who was a former partner at the consulting firm EY, along with a 9-member advisory council that consists of names like Nandan Nilekani, the co-founder of software powerhouse Infosys Ltd, National Health Authority’s RS Sharma and more.
Nilekani has also earlier helped the Indian government in developing Aadhar biometric ID system. As per him, ONDC is meant to democratize digital commerce in India.
As per a survey, India in 2021 had around 289.1 million digital buyers. This number is expected to increase and reach around 377.6 million in 2025.
Number of Digital Buyers in India
To date, the maximum share of eCommerce in India is in the hands of a few big companies. However, the growing number of buyers invokes the need of including small sellers from remote places to become a part of this huge market.
To help resolve this issue with the aim of bringing more retailers and sellers online government brought forward the concept of Open Network for Digital Commerce (ONDC).
Impact of ONDC on the E-commerce Industry of India
What is ONDC?
ONDC Logo
Before understanding how the government will implement this and what are its benefits, let us first understand clearly what ONDC is.
Until now, digital commerce across India is abiding by the platform-centric model. This means there are different platforms available online through which a seller can sell his product and a buyer can purchase them by registering on the same platform.
This means that the buyer and seller have to be on the same platform for an online deal to occur.
The idea behind ONDC is to bring e-commerce to the open network model instead of the platform-centric model. This will make e-commerce approachable for all types of buyers and sellers.
The idea is to bring the buyers and sellers from different platforms into each other’s approach without any of them having to register on the platform on which the other exists.
It will allow the buyers and sellers from different platforms to connect with each other, provided that both the platforms are linked to ONDC. This is similar to the role UPI plays in terms of transactions. UPI is a fitting example of the concept that ONDC is working on. This is because where UPI united the banking partners and the merchants/users, via a single unified platform connected through the mobile number, ONDC is pivoting on a similar concept that will unite the buyers, sellers, logistics providers aggregators, payment gateways, and more on a single platform, which will make buying and selling easier for everyone in the ecosystem.
Therefore, the ONDC network allows the buyer to connect with the seller and make transactions to settle the deal irrespective of which applications they are using for buying or selling the products.
UPI and ONDC | What’s the Difference?
Often during the ideation and the development of the ONDC product, we have heard people, businesses, and media placing ONDC and UPI systems side by side. While both the systems are based on a similar idea, which is to link people and make things in the Indian market easier, they are poles apart really in terms of the functionality, complexity, magnitude, people, segments and markets involved, and more.
For example, the UPI system was involved in the secure transfer of finances, the main objective of which was to facilitate the transfer of funds, and keep the same secure between banks, merchants and customers. However, when it comes to ONDC, the concept of ONDC does not involve a direct transfer of goods and services but is related to the same.
Besides, ONDC also has a list of subjective variables, which the UPI doesn’t have. For instance, ONDC has to look after the quality of the products being sold, onboarding sellers and shops, making the communication between them easier, overlook the reliability of both the sellers and the buyers, looking after the speed of delivery and more.
Also, when it comes to the UPI system, nothing was dependent on physical interaction, which stands in sharp contrast to the ONDC system, where the latter is significantly dependent on the offline steps after the matchmaking is done online.
The first option is to create its own website. This might require some technical support. Further, this is a cost-intensive process as it involves a lot of extra charges such as website creation and management costs, logistic charges, etc.
Also, even after the website is built and functional, the seller will have to invest a lot of money in advertising for his website in order to attract buyers.
The second option is to sell the products on aggregator platforms or so-called online marketplaces. Although this system appears quite convenient in comparison to building a website, it has its own issues.
The two top players in this field i.e. Amazon and Flipkart are both US-based companies. They keep a large share of profit in return for displaying and selling your products on their platform. In addition, sometimes, there have been complaints of brand preferences where these platforms are said to exhibit favoritism towards a few brands.
Moreover, sometimes these marketplaces collect data from the sellers and depending on the market inclination, introduce their own products, to stay ahead of the curve.
Another main concern associated with e-commerce is the lagging of small retailers, merchants, MSMEs, etc. Owing to the limited reach of e-commerce in small towns and villages, these small businessmen are deprived of the benefits associated with e-commerce.
Most of them have not been able to begin their online journey on these digital selling platforms due to restricted technical knowledge and the small number of options available.
To counter these problems and take digital commerce to a whole new level, ONDC has been formed. The aim is to make e-commerce reachable even for small retailers and merchants.
The ONDC platform is an idea that is focused on increasing 3 major things that most buyers and sellers dream of:
Discoverability – The ONDC platform will help both the buyers and the sellers maximise their discoverability.
Transparency – ONDC will offer clear visibility and the benefits of comparing everyone and everything that is listed on it. This will make things transparent enough for everyone and everything related to eCommerce.
Interoperability – The ONDC network will have the buyers, sellers, aggregators, delivery partners, logistics providers, and more, and all of them will be operating freely with each other, forming a stable and trustworthy network for maximum benefits.
How will ONDC impact the e-commerce industry in India?
The introduction of ONDC will encourage small retailers to step foot into e-commerce. ONDC will result in bringing separate buyer-centric and seller-centric apps that will be beneficial for anyone who is invested in e-commerce.
The new apps that may appear in the market can help resolve other issues for buyers as well as sellers. For example, it may help the sellers with logistics solutions while the buyers may be benefitted by shopping from the nearest available or cheapest store in town.
The main benefits expected out of ONDC are as follows:
Formalization and democratization of e-commerce.
Large scope for discovering prices and comparing them.
Auxiliary support and services for both buyers and sellers.
Enhanced business opportunities owing to the open platform.
Option to outsource for both buyers and sellers.
Reducing the monopoly of big shots in e-commerce.
Rational process of business.
Some of the areas/industries that ONDC is expected to disrupt are:
Cab services – Two major players driving the cab services in India are Ola and Uber. However, whether it is their drivers or the Indian customers, all are dissatisfied with the policies and the management of the companies. Here, the ONDC platform can come as a respite for the users, who can get the services they ask for at lower costs, while on the other hand, the cab drivers can freely sign in with ONDC to get a bigger and better reach.
Food delivery – The food delivery ecosystem of India has been largely controlled by Zomato and Swiggy, where both the customers and the restaurant providers are at the mercy of these two foodtech giants. Many restaurant partners have earlier thought of delivering directly, but they failed. The ONDC can now empower them better to bring in the change!
Quick commerce – Quick commerce, which is looked up to as the next big thing in India, was earlier in the hands of the Kirana stores, who were the original quick commerce players. However, they seemed to have lost the battle against the able quick commerce players like Zepto, Dunzo, Instamart, Blinkit, and more. This new initiative of ONDC can, therefore, gear up the Kirana stores and their owners to serve their customers faster and better.
For the first couple of years, ONDC has set a budget of Rs 150-200 crore, mentioned by T Koshy, in a report dated July 2, 2022. CEO Koshy said that it has already raised 85% of its funding for the first phase of the operation. The platform had earlier chosen 20 institutions and asked them to put Rs 10 crore each from their funds. It has been earlier reported that the ONDC platform has raised over Rs 155 crore with the help of some of the largest banks of India – SBI, Axis, PNB, HDFC, Bank of Baroda, and Kotak Mahindra Bank, and some of the financial institutions like NSE, NPCI, NABARD, and SIDBI. T Koshy has further specified that ONDC has got 17 such investors to fund them with Rs 10 crore each by March 31, 2022, while the remaining organisations will extend their funds to ONDC by August 2022.
Speaking about the ownership of ONDC, T Koshy mentioned that no investor would be allowed to hold more than 50% of the ONDC stakes.
Tracing the Growth of ONDC
The ONDC platform is on the brink of completion and pilot have already started in a selected list of Indian cities. A trial run of ONDC has been conducted in 6 cities in India including Bengaluru, Shillong, Lucknow, and Coimbatore.
ONDC Onboarding Grows!
With players like Walmart-owned Flipkart, Reliance Retail-backed Dunzo, Alibaba-backed Paytm, and more already joining the revolutionary platform, and Amazon willing to join it ahead, ONDC is already creating waves. Many other seller platforms, buyer platforms, logistics providers, and payment gateways are also signing up with the ONDC concept. As per the latest news, nearly 24 startups, like Meesho, and numerous other subsidiaries of Flipkart have joined ONDC. The ONDC platform is looking to onboard around 200 companies ahead, as per reports dated July 19, 2022. Snapdeal has already signed the agreement with ONDC earlier in July 2022, and will likely be integrating with the platform by the end of August 2022.
After Dunzo, another Reliance Retail-owned startup Grab joined the ONDC platform, as per reports dated August 1, 2022. 80% of Grab shares are currently owned by Reliance Retail. Grab is a 9+ years old startup that offers a wide range of services including on-demand, reverse deliveries services, and first and last-mile logistics to clients including FedEx, Blinkit, Paytm, BigBasket, Myntra, Amazon, and Swiggy.
Dunzo’s B2B logistics arm, Dunzo for Business (D4B) has collaborated with ONDC with an aim to provide last-mile delivery services to local enterprises on the ONDC network, as per reports dated August 5, 2022.
Microsoft has become the first international company to join the ONDC platform. The American software giant will reportedly bring a social commerce platform or one that will allow a group buying feature for its Indian users. This association would enable Microsoft to connect with Indian users without depending on any e-commerce platforms. This partnership with Microsoft reveals the credibility attached to the ONDC platform of India, mentioned T Koshy.
ONDC Inked MoU with the Small Industries Development Bank of India (SIDBI)
ONDC inked a Memorandum of Understanding with SIDBI to onboard small and medium-sized businesses on the ONDC platform, which would help ONDC improve ecommerce participation. Signed between the CMD of SIDBI Sivasubramanian Ramann, and the Managing Director and CEO of ONDC, T Koshy, this agreement would lead both the entities to encourage the MSMEs access the open network ecommerce platform.
The ONDC platform is not here to challenge the big players like Flipkart and Amazon. The ONDC CBO Shireesh Joshi confirmed that the platform will stay essentially as “eCommerce enablers helping the small retailers leverage the digitisation of commerce through our network.”
The penetration of the eCommerce industry has only been 4-5% so far, as per July 2022 reports. To boost the same by increasing the number of retailers is one of the main objectives of the ONDC network. Joshi further revealed that the bigger players like Flipkart and Amazon will reap major benefits if this objective is fulfilled.
The ONDC platform will be launched in 75-100 more cities in India by August-September and will be open to the public during the same time in 2022, mentioned T Koshy, the CEO of ONDC, as per the reports dated July 2, 2022.
Koshy has added that the ONDC will be opened to be public whenever it will find that there are enough sellers in a pin code area. Launching the service in these cities ahead will help the initiative lay a foundation on which the network can grow in the times upcoming, organically. The ONDC platform is expected to see a “hockey stick-like growth”. The CEO of the platform also pointed out that if it gains the support of the CSC SPVs (common service centre – special purpose vehicles), which are designed to spread the government’s e-services to rural areas and remote places, then that can help ONDC reach at least half of the Indian villages.
Marquee investors like Sequoia India and SoftBank have advised their portfolio companies to join the Open Network for Digital Commerce (ONDC), as per reports dated July 20, 2022.
ONDC Challenges
ONDC has come up as a revolutionary product that will transform the Indian market in the times upcoming. However, due to the complex design of the product, it has already started to face numerous implementation challenges. In comparison to the UPI system, ONDC is way tougher to both design and implement.
Conclusion
With the schemes like digital India, no doubt e-commerce is the future of the Indian market. This is also clear from the fact that the Indian e-commerce industry is expected to rise from $46.20 billion in 2020 to $200 billion in 2026. Here, the ONDC can easily be identified as a new-age idea that has a huge market ahead.
At this stage, the e-commerce platforms, being totally captured by a few large companies can certainly impact the small businessmen from the remote areas of the country, who still are unable to utilize this amazing platform.
This is sure to have an adverse effect on the economy with these small retailers losing their business to a few big players.
The introduction of the Open Network for Digital Commerce (ONDC) at this point is certainly a great initiative by the government to help these small businessmen to maintain their position in the race.
This will also give them the opportunity to escalate their businesses to a larger scale by making their products reach a larger audience.
FAQs
What is ONDC?
Open Network for Digital Commerce (ONDC) is a non-profit organisation in collaboration with the Government of India that brings e-commerce to the open network model instead of the platform-centric model. This will make e-commerce approachable for all types of buyers and sellers.
Who owns ONDC?
ONDC is owned by the Department for Promotion of Industry and Internal Trade.
Who is developing ONDC Project?
T Koshy of EY is leading the Open Network for Digital Commerce (ONDC) project, supported by a 9-member advisory council consisting of names like Nandan Nilekani, the co-founder of Infosys Ltd., and others.
Within ten years, e-commerce business platforms are booming like anything. All the more, the pandemic seems to have given a push of 10 times more to these e-commerce sites. The given hectic life, and busy schedules, people do not have the leisure to go out and shop. With many reliable e-commerce websites available, people prefer to buy products online.
According to sources, the Indian e-commerce market is expected to grow to $188 billion by 2025 from $6.2 billion (2020). It is also predicted that the market is expected to increase by 21.5% by the end of 2022.
Flipkart, which is India’s one of the biggest players in the e-commerce market, is also considered the most valuable startup in the country today. This Walmart-owned company started its journey by selling books online and further expanded into selling other product varieties such as electronics, fashion, home essentials, and other lifestyle products.
Through its journey of becoming the most successful startup, Flipkart has acquired several companies. Today, Flipkart has a revenue of 433 billion Indian rupees.
In this article, let us discover the list of major companies acquired by Flipkart.
ANS Commerce is a direct-to-consumer (D2C) SaaS startup. The company offers e-commerce solutions for online brands, such as brand-store tech, performance marketing, platform support, marketplace management, and more.
Flipkart has acquired ANS Commerce for an undisclosed amount. However, the agreement is yet to be completed due to some closing conditions.
2. Yaantra
Year of Acquisition – 2022
Yaantra Logo
Yaantra is an electronic repair company that offers door-to-door electronic repair services for smartphones and laptops and sells refurbished products. The acquisition made by Flipkart is to improve its after-sale services in the smartphone segment and to maintain the recommerce platform. Yaantra was acquired by Flipkart for approximately $40-50 million.
3. SastaSundar
Year of Acquisition – 2021
SastaSundar Logo
SastaSundar operates in online pharmacy and healthcare solutions such as e-diagnostics, and e-consultations with a network of more than 490 pharmacies. Flipkart was acquired to further improve the healthcare system by offering affordable pharmacies to consumers on a large scale. The Flipkart group has a 75.1% stake in the SastaSundar company.
4. Cleartrip
Year of Acquisition -2021
Cleartrip Logo
Cleartrip is an online travel service company. The company offers booking services for flights, train tickets, and hotel reservations in India and the Middle East. The Covid-19 pandemic made a very stressful year for the travel sector, due to which, Cleartip had laid off around 500 employees. Flipkart acquired Cleartrip in April 2021 in a $40 million deal.
5. Scapic
Year of Acquisition – 2020
Scapic Logo
Scapic is a cloud-based startup that deals in creating and publishing AR and 3D content through a web browser for clients across e-commerce and marketing platforms. The deal made by Flipkart is to enhance its user experience. Flipkart has a 100% stake in Scapic, however, the deal value is still undisclosed.
6. Mech Mocha
Year of Acquisition – 2020
Mech Mocha Logo
Mech Mocha is a mobile gaming platform that operates a live social game called ‘Hello Play’. This gaming app allows participants from tier II and tier III cities to interact with each other through its in game-video. Flipkart invested in Mech Mocha at an undisclosed amount.
7. Walmart India
Year of Acquisition – 2020
Walmart India Logo
Walmart India is a subsidiary owned by Walmart Inc., which is an American multinational retail corporation that has a wide variety of markets dealing mainly in departmental stores, and grocery stores. The reason for Flipkart to acquire Walmart India is to help expand its footprint in the food and grocery segment, which will further strengthen its supply chain.
8. Upstream Commerce
Year of Acquisition – 2018
Upstream Commerce is an Israel-based retail platform that provides cloud-based automated-competitive solutions to help online retailers develop an analysis to boost their sales. Flipkart acquired Upstream commerce to further optimise its product pricing to compete with its rival Amazon.
9. Liv.ai
Year of Acquisition – 2018
Liv.ai is the first Indian company that uses powerful neural network models that enable developers to convert speech into text supporting 10 Indian languages. They aim to give voice to billions of Indians, and the ability to express their language through the digital world. Flipkart acquired Liv.ai for $40 million.
10. F1 Info Solutions & Services
Year of Acquisition – 2017
F1 Info Solutions & Services Logo
In 2017, Flipkart acquired F1 Info Solutions & Services, an IT products repair service provider of brands like Apple, HP, Samsung, Sony, Lenovo, Asus, and many more. The main reason for the acquisition of F1 is to expand Flipkart’s offerings towards after-sale repair services for its IT products and mobile phones.
eBay is an American multinational e-commerce platform founded in 1995. eBay started its operations in India in 2005 but was not that successful. Flipkart acquired eBay in 2017 for approximately $500 million.
12. Jabong
Year of Acquisition – 2016
Jabong Logo
Jabong.com is an online portal that sells products in categories like fashion accessories, footwear, apparel, home essentials, and other lifestyle products. Flipkart acquired Jabong through Myntra for $70 million.
13. PhonePe
Year of Acquisition – 2016
PhonePe Logo
PhonePe is a digital payment mode for online transactions in India founded by Sameer Nigam. The app operates around the Unified Payments Interface (UPI), regulated by the National Payments Corporation of India. The company was acquired by Flipkart in 2016, although it will function as a separate business unit. Flipkart bought the company for $20 million.
14. FX Mart
Year of Acquisition – 2015
FX Mart Logo
FX Mart is a company that offers payment services like digital or electronic payments, remittances buying and selling of currencies, travel, and related services. The acquisition was made with an aim to enable Flipkart to have its own in-app wallet system and avoid paying a cut to external wallet providers. The deal value was around $6 million.
15. Appiterate
Year of Acquisition – 2015
Appiterate Logo
Appiterate is a mobile marketing company that engages in marketing automation to help e-commerce companies push their sales through push notifications and in-app messages. The details of the deal are undisclosed.
A global mobile ad network founded by Anurag Dod, AdIQuity was launched with the aim to facilitate ad agencies to acquire mobile traffic. Flipkart bought this company in hopes to increase its efficiency on the mobile platform.
17. Myntra
Year of Acquisition – 2014
Myntra Logo
Myntra, initially sold personalised gift items but later on expanded into fashion and lifestyle brands in 2010. In 2014, the company was bought by Flipkart at a valuation of approximately $370 million. The acquisition was done in to beat Flipkart’s rival Amazon to create one of the largest e-commerce markets. To date, Myntra is one of the biggest acquisitions of Flipkart.
18. Jeeves
Year of Acquisition – 2014
Jeeves Logo
Jeeves is one of India’s leading third-party after-sales service providers with a network of 320+ service partners. It was during the same year, Flipkart launched its large appliance category.
19. Letsbuy.com
Year of Acquisition – 2012
Letsbuy Logo
Letsbuy.com is an online retail shop selling branded computer technology and digital lifestyle products from top international and domestic brands. Flipkart acquired Letsbuy.com for $25 million.
20. Chakpak
Year of Acquisition – 2011
Chakpak is an online media podium for films revolving around Bollywood, Telugu, and Tamil that enables users to find information regarding their timings, reviews, latest news, and information. Flipkart made this acquisition to let them offer user-generated content for a huge array of Indian movies to their customers.
21. MIME360
Year of Acquisition – 2011
This was a Mumbai-based digital media distribution company. MIME is the short-form of Manoramic International Media Exchange. The company has ties with Saregama and Gaana.com and operates in Mumbai, and Delaware, USA. To improve their digital distribution technology platform, Flipkart acquired MIME360.
22. weRead
Year of Acquisition – 2010
weRead Logo
The first startup acquired by Flipkart is weRead.com. It is an online community for all book readers. The platform was available on Facebook, Myspace, Orkut, Hi5, and Bebo. Flipkart wanted to expand its customer base to further improve its customer book reading experience.
Conclusion
The list of startups acquired by Flipkart gives us a clear understanding of how ambitious Flipkart is. They aim to keep growing and compete with their rival Amazon. The group is in the mood to diversify its ecosystem through these various investments in multiple sectors.
The company has grown tremendously in just ten years and continues to evolve every day by expanding its services for its consumers. Besides these acquisitions, Flipkart has made investments in Ninjacart, Aditya Birla Fashion Retail Limited, Shadowfax, and Arvind Fashions.
FAQs
What companies are owned by Flipkart?
Ans commerce, Yaantra, Sastasundar, Cleartrip, Scapic, Mech mocha, Walmart India, Upstream commerce, Liv.AI, F1 info solutions & services, eBay India, Jabong, Phonepe, FX Mart, Appiterate, Adiquity, Myntra, Jeeves, Letsbuy.Com, Chakpak, MIME360, and Weread are owned by Flipkart.
Is Flipkart an MNC company?
Yes, Flipkart is an MNC company founded by Sachin Bansal and Binny Bansal.
What kind of company is Flipkart?
Flipkart is an eCommerce company based in Bangalore.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Vanity Wagon.
The love for organic beauty and personal care products is increasing in India. With people becoming aware of the long-term damage that chemical-containing beauty products can cause, the demand for organic and natural products is increasing like never before. This has instigated the emergence of many organic and natural care brands that claim to be chemical-free.
In the presence of too many choices, it has become tough for consumers to choose genuine products. To solve this confusion and to ensure that the consumers choose only genuine organic beauty and personal care products, Vanity Wagon was started. The vanitywagon.in picks and collects just the best organic beauty wagon and personal care products for you.
The vanitywagon.in is a Gurugram-based startup founded in the year 2018. It is a one-stop platform to buy genuine organic beauty products for beauty and personal care. Vanity Wagon offers the products included in the platform that are toxin-free, harmful chemical-free, cruelty-free, and completely safe.
Our belief is to create a shopping experience that is not only par satisfaction but also through an informed choice. We impart a large amount of information on our products and also on the general adoption of organic products in one’s life. We want to grow as a platform that is informative, trustworthy, and fun.
What is Vanity Wagon?
Vanity Wagon app is India’s First Natural Beauty Market with its headquarters in Gurugram. It offers all categories of products like Bath and body, skin-care, hair-care, makeup, men’s care, mom and baby care, beauty products, wellness products, and gifting options. The best part is that all the products available in Vanity Wagon are organic and natural.
According to some Vanity Wagon reviews has also established itself as an informative platform, where they share detailed information about various beauty products, beauty advice from experts, and the various benefits of switching to organic products.
One of the experiments that we did was with our own forum wherein we interact with individuals daily and not only reply to their queries but also post some legitimate–core information on organics and the natural personal care industry. The forum started as a pilot project but with the response, we realized how many information gaps existed in the market and decided to take it on as a long-term project.
Vanity Wagon – Organic / Online Beauty Industry in India
According to Red Seer Consulting, the Indian online beauty market is currently pegged at $150 million. The market size is growing 10 times per year and is expected to reach $1.6 billion by 2025. The Vanity Wagon tracking and interface are easy to use on both the website and app.
The market size of organic beauty wagon products is currently $42 million. The global market value for natural cosmetics and beauty products is expected to make shift from 30 billion dollars in 2021 to 50.5 billion dollars by 2027. Vanity Wagon believes in sustainable beauty and stands firm in its mission to educate the audience and deliver what’s best for them in the long run.
Vanity Wagon – Founders & Team
Naina Ruhail, Prateek Ruhail & Sahil Shrestha
Vanity Wagon’s founders are Naina Ruhail, Prateek Ruhail, and Sahil Shrestha.
Naina Ruhail is an established media influencer and professional make-up artist in India. She completed her MBA in 2012 and then went on to specialize in beauty & skincare with her education at the London School of Styling and the London School of Makeup. She has 7 years of professional experience in marketing and brand building.
Prateek Ruhail is an MBA from the University of Oxford with a Dean’s Commendation Award. He has 3 years of Project Finance (Legal) and 4 years of Business Management experience. His area of expertise is business strategy and core management. He also has led mega infrastructure project financings, thereby understanding the nuances of financial management in India.
Sahil Shrestha has an educational qualification in management and technology. Post completion of his MBA in 2012 he went on to work in different facets of operations. He is one of the main Vanity Wagon founders, as he leads the operational vertical, bringing the best of his experiences onboard.
The idea was thought of by Naina post her stint in London, UK. The market research and study showed tremendous industry growth and also a promise for a brand like Vanity Wagon to create a niche space for itself.
That being said Prateek and Naina went on to initiate the set-up of Vanity Wagon India when Sahil Shrestha (the operational team leader) jumped in and went on to complete the founding team.
Vanity Wagon – Name & Logo
Vanity Wagon Logo
The team wanted the startup name to focus on two strong points – ‘An Indian woman’s beauty box’ and ‘pan India coverage’. The initial names were around beauty and organic and natural. Several names came up, however, nothing was strong enough to focus on our two strong points – ‘An Indian woman’s beauty box’ and ‘pan India coverage’.
The Vanity Wagon logo and name are based on a beauty box that holds a Woman’s care needs and we want to build the whole personal care space of a Woman’s life with organic–natural products. Hence came the idea of the Vanity Wagon website.
Most often women in India would refer to their beauty arsenal by the term Vanity Kit. Further, the Wagon symbolizes the team traveling from household to household, city to city, and reaching every nook and corner of India, while servicing the personal care needs of an individual.
The idea was taking form while Naina was learning beauty & skincare at the London School of styling and London School of Makeup. She noticed that in the UK shopping for organic and natural beauty care products was easy, as dedicated platforms were offering just organic and natural beauty and personal care products. However, in India the beauty and personal care market is fragmented.
Besides, the market research and study showed tremendous industry growth and also a promise for a brand like Vanity Wagon India, to create a niche space for itself. The idea was validated when the first stage of research was conducted about the beauty market in India.
The organic beauty market with the fast growth of over 52% proved that the consumers of India were making the switch and a marketplace like Vanity Wagon would just make it easier.
With the idea in place, the question in mind was how to go about launching the market, which brands to keep initially, which products and categories to target, and what consumer base to work on.
With several social surveys, A&B testing, and market research the team went on to finalize all these and a point to start from. Assembling the tech team, the base work for the portal – tech, design, graphics, was put in place and the idea was executed with a turnaround time of 4 months.
The launch of the Vanity Wagon website was led across all metro cities in India simultaneously with all the buzz that could be created. With a launch event for the media, blogger collaborations, and social media launch strategy in place, Vanity Wagon went live for India in 1 go and started servicing over 10000 pin codes on Day 1.
Vanity Wagon – Business Model
Vanity Wagon’s business model works on an upfront discount – inventory-driven model. There are many ways that you can avail Vanity wagon coupon code and offers.
Vanity Wagon – User Acquisition
Vanity Wagon Homepage
The first 10 customers came in very early for Vanity Wagon. With a pre-launch plan in place, the company gathered tremendous traction before it went live and the first 10 customers were acquired fairly quickly (in 2 days).
Vanity Wagon heavily relies on customer-centric promotions. It uses social media platforms and also paid and owned media to reach out to the target audience. As said by Prateek, owned media is working remarkably well for Vanity Wagon India.
One of the first campaigns we did worked well for us, owing to the team’s approach to it and the concept – ‘What Organic Means to You’. We did this campaign with bloggers, a few household women, and the real users out there. The idea was to understand what we need to do to make organics popular and the whole campaign was really helpful. With over 100 ideas on what organics can mean we knew which notes to hit and doing so earned great success in the short term post the campaign.
Vanity Wagon – Growth
Vanity Wagon operates out of Gurugram (Corporate Office) and warehouses at present in Delhi With revenue growth of 100% month on month, the company is destined for great success in the long term.
Starting with a limited brand base, it now boasts over 151 brands including some top players in Natural Beauty such as MyGlamm, Ruby’s Organics, Indulge Essentials, Raw Nature, and Biotique.
The User-base continues to grow steadily at 50-70% month on month and is driven by multiple sources online and offline Vanity Wagon works closely with every customer and runs to create a communal feeling wherein every user freely converses with our experts and benefits in every possible way even if there is no transaction involved.
Vanity Wagon – Funding & Investors
Vanity Wagon funding is bootstrapped and is working towards raising early-stage investment in FY 19-20. The shareholders at present are the founding members.
The cash flow for the vanitywagon.in funding has been fairly consistent with great support from our family and friends too. We have managed to create the right buzz in the market and are getting rewarded for that each day with our growing user base and repeat customers – Prateek
Recently in January 2021, the company raised over $200,000 in a seed round that included investors like Agility Venture Partners, Alfa Ventures founder Dhianu Das, actress Anita Hassanandani and angel investor Sanjay Nagi. The most latest funding was raised in October 2021 by the seed round.
The total amount raised by Vanity Wagon is $934k. The Vanity Wagon funding is said to be used to expand its global footprint, onboard more brands, and fulfill a larger consumer base.
Vanity Wagon – Startup Challenges
According to Prateek, the biggest challenge for the Vanity Wagon app is to make the users switch. With so many nice-smelling, beautifully packed chemical products on the market, the majority of the user base is content with buying products that a celebrity endorses. Natural products are comparatively newer to the space of mainstream beauty and are slowly making their place in the market.
There are many platforms offering beauty and platforms online. Some of the Vanity Wagon competitors are the Nykaa platform, Purplle platform, and Dermstore platform.
While all other platforms offer all sorts of beauty and personal care products that may or may not be natural, Vanity Wagon’s USP is a dedicated platform for just natural and organic products.
Vanity Wagon reviews talk about the platform creating a space where an individual only has natural options be it in makeup, skincare, bathing essentials, or wellness. Everything on the portal is non-harmful chemical driven and makes it easy for a consumer to get hooked on clean beauty.
All our competitors motivate us primarily being Nykaa, having done so well in the last few years. They have gone on to create a community for beauty and we look to do that for natural beauty.
Vanity Wagon – Advisors & Mentors
Vanity Wagon India has advisors from different fields and tangents including – tech, marketing, and business strategy.
Col. A S Ruhail (Retd.) with a distinguished career in the Indian Army went on to successfully establish an educational venture. His core being strategy and business implementation, the Vanity Wagon website closely associates with him on major strategy standpoints and benefits in every way possible.
Mr. Mayank Kumar (IIM Lucknow) has a successful enterprise and advises Vanity Wagon on the technical growth plans and strategies.
Mr. Vaibhav Jain is a successful entrepreneur – marketer and angel investor. He offers his support in marketing and brand-building initiatives for Vanity Wagon.
Vanity Wagon – Future Plans
The platform claims to have sold over one lakh products and registered 5 times more growth since 2019. Vanity Wagon has great plans for growth in the future-
The company wants to serve customers through an omnichannel strategy, thereby aiming to open 15 stores by the end of 2022.
Vanity Wagon are targeting to have more than 200 brands associated with them by the end of 2022.
The company is planning to ship Indian Organic beauty products to 5 offshore territories and they are currently planning to start with Singapore and then move forward with other APAC countries.
The company is also planning to take over several brands to increase its business. The brands that are unable to fit the market due to money issues but have great potential in their products are on the target list of vanity wagons.
Vanity Wagon is a platform started by three individuals for the betterment of people. Vanity Wagon is a platform that promotes the growth and sale of nontoxic products. They promote the clean beauty marketplace. The beauty products that are available on their site all fulfill the criteria set by the Vanity Wagon team. Some of the basic information about vanity wagons is shared above.
FAQs
What are clean beauty brands in India?
Clean beauty brands sell products that are in harmony with our body and health and does not have any toxic chemical in them. Some of the most well-known clean beauty brands in India are Butterfly, FAE Beauty, Blur, etc.
Does Vanity Wagon sell original products?
As per the reviews collected by Vanity Wagon, the products sold by them are 100% original. Vanity Wagon is also known as the best platform to sell clean beauty products that do not cause any toxicity to the body and health.
Is brand Myglamm chemical-free?
Yes, the products made by Myglamm consist of no toxic chemicals in them. They are made with 100% free toxic formula.
Is MartiDerm cruelty-free?
Yes, all the products made by Martiderm are cruelty-free as they are not tested on any animal as well as there is no harm done to any animal in their production.
Who are the competitors of Vanity Wagon?
The competitors of Vanitywagon are Nykaa, Purplle, and Dermstore.
German retailer Metro AG which is trying to sell its Indian cash-and-carry operations for around $1.5-1.75 billion has caught the attention of a lot of big companies.
Companies like Reliance Retail, Amazon, TATA Group, Avenue Supermarts — which runs the DMart chain, Thailand’s Charoen Pokphand (CP) Group, Swiggy, Lulu Group, and PE fund Samara Capital are in the race to buy the Indian unit of Metro AG.
But, why are these companies eyeing Metro AG? What does Metro AG exactly do? To find answers to these questions, keep reading this article till the end.
Relative Market Share of Metro Cash and Carry India from FY17 to FY20
Metro AG is a German international specialist in wholesale and food retail which has made its footprints in 34 countries. The headquarters of this company is in Düsseldorf, Germany. The company operates under the cash and carry wholesale business model.
In the cash and carry model, retailers, caterers, hotels, restaurants and other special businesses purchase the goods from a wholesale warehouse and pay the invoice on the spot in cash. Customers have to arrange the transport of the goods themselves.
The Indian subsidiary of Metro was established in 2003 when the Indian government allowed 100% foreign direct investment in wholesale trade on a cash and carry business model.
The company has a chain of 31 cash-and-carry stores in India under the brand, Metro Wholesale. Only business customers can buy goods from these wholesale centres.
Main Products and Services of Metro AG
Metro Cash and Carry India provides 7,000 products to its business customers across various categories like fruits & vegetables, dairy, frozen and bakery products, general grocery, health and beauty products, media and electronics, confectionery, detergents and cleaning supplies, household goods and apparel – all under one warehouse at wholesale prices.
Target Audience of Metro AG
On Metro’s official website, the company has mentioned that its core customers in the Indian market include small retailers and Kirana stores, SMEs, and all types of offices, companies and institutions. The company also targets HoReCa- Hotels, Restaurants and Caterers.
Why Metro AG Wants to Exit the Indian Market?
Metro AG India
Metro AG generated a whopping revenue of $898 million in FY21 (Oct-Sept) and is likely to close the current fiscal year with more than $1 billion in revenues with an EBITDA growth of 30-40%. Last fiscal the EBITDA growth was 50%.
Even after earning so much revenue, why does the company want to exit the Indian market? The reason is increased competition. When Metro AG entered the Indian market in 2013, there were not a lot of players. But, now the situation has completely changed. Metro AG is facing tough competition from Reliance and Udaan.
To fight the competitors the company has to spend $300 million to stay relevant in the market in the short term. But, the parent company METRO is not ready to spend this huge amount to beat its competitors.
Although tough competition is not the only reason for the company to surrender their Indian unit.
“Selling below cost and free delivery of goods are the issues. Most competitors are operating at negative 20-25% EBITDA,” said an industry veteran who doesn’t want his name mentioned in the article.
“At Metro, we regularly assess our international portfolio, such as our market position in the respective country, the life cycle of our operations, and the growth potential of our business. This is a general approach and normal business applied to all countries, including India,” said Gerd Koslowski, the company’s global director of corporate communications.
Metro wants a profitable business in India which is not possible in the near future and that’s why the company is selling its Indian unit.
Last year the company exited Japan and Myanmar due to increased competition. The company has also closed its business in Russia due to its war with Ukraine.
The company has appointed JP Morgan and Goldman Sachs, the most respected investment banks, to find a buyer for their business.
According to Statista, the Indian retail market in 2020 was worth 800 billion USD. By 2026, this figure will reach 1.7 trillion USD. The Indian quick commerce market will reach $5 billion by 2025.
Since Metro AG already has a huge chain of warehouses, wholesalers and retailers, this gives these companies a big chance to tap into the booming retail and quick commerce market. This is the very reason why all of the big companies are fighting to buy the Metro AG.
The company which is trying to disrupt the retail and quick commerce segment is Reliance. The company has already made huge efforts since 2021 to build a large number of wholesale centres for food and grocery, apparel, electronics, and medicines. Reliance is also integrating numerous small shops into its business strategy. Mukesh Ambani has said that they are planning to onboard more than 10 million merchant partners over the next three years.
The main goal of the company is to supply a range of products to consumers through its eCommerce platform JioMart. Reliance already has a huge chain of warehouses and if they acquire Metro AG they would achieve this goal really fast.
But, let’s look at the bigger picture. Reliance is trying to build its own ecosystem. The company wants Indians to use its services from the morning to the night. Consumers can buy products from their eCommerce platform, JioMart using Jio’s mobile or WiFi networks, watch movies on Jio Cinema and pay the money via Jio wallet. Like this, the customers will stay in their eco-system for a long period of time.
Another company that wants to leverage the retail and quick commerce segment is Swiggy. The company wants to expand its current food delivery business model to the quick commerce segment. By acquiring Metro AG the company wants to accelerate Instamart’s growth.
“Swiggy has evinced interest in the acquisition, and a potential deal would enable Metro Cash & Carry’s wholesale stores to feed Swiggy’s Instamart delivery model,” one of the executives said.
“The idea is to create a hub-and-spoke model where Metro stores will supply to Instamart stores, which could be delivery-only or even stores where consumers can walk in.”
Conclusion
All the companies know the bright future of the retail business and quick commerce segment. The companies know that if they acquire Metro AG, they would be able to capture the market quickly. Now, it’s very tough to predict which company will buy Metro AG but, this race would be quite interesting to watch.
Big players in the quick commerce segment like Zomato and Swiggy are not making huge profits. But, if the companies build a smart business model then the quick commerce field can help generate huge profits for any company.
FAQs
What is a cash and carry store?
In cash and carry stores customers buy products from warehouses and settle the invoice in cash and carry the goods with them. Customers have to arrange the transport of the goods themselves. Usually, these customers are retailers, caterers, hotels and restaurants.
Is Metro cash and carry closing in India?
Yes, Metro cash and carry is exiting the Indian market by selling its Indian operations for $1.5-1.75 billion.
How many Metro wholesale stores are there in India?
Metro has 31 wholesale stores in India.
Is Metro an Indian brand?
Metro AG is a German international specialist in wholesale and food retail which has made its footprints in 34 countries. The headquarters of this company is in Düsseldorf, Germany. The company operates under the cash and carry wholesale business model.
Rishabh Rathi
