Ebay.in was one of the first ecommerce giants of the country. It was launched back in 2004. However, it couldn’t hit off the roof with the coming of Amazon and Flipkart; life will come a full circle when Ebay.in closes operations on August 14.
With Walmart’s biggest ever $16 Billion investment for 77% stakes in Indian giants Flipkart in May, minor shareholders like Naspers and eBay have sold their holdings in the company and the announcements are a way to move ahead. eBay had acquired 5.44% ownership of Flipkart back in April 2007 after a cash investment of $500 million and selling Ebay.in. Flipkart had acquired $1.4 billion from eBay, Tencent and Microsoft.
With Walmart’s acquisition bringing a fresh infusion of $1.1 billion, eBay plan to launch a new platform which will focus on cross-border trade. They’ll not be in direct competition with Walmart and Flipkart but Amazon who also do cross-border trading with Amazon Global Products Marketplace.
Meanwhile, Flipkart will be launching its new platform for refurbished goods to replace eBay. Flipkart CEO Kalyan Krishnamurthy conveyed the same to all the employeesin an email.
“Based on our learnings at eBay.in, we have built a brand-new value platform launching with refurbished goods – a large market which is predominantly unorganised. As part of this launch, we will be stopping all customer transactions on eBay.in on 14 August, 2018 and transitioning to the new platform,”
“We will keep evolving and bringing newer formats, categories and features which cater to the needs of our value-conscious middle India. The new platform has a different value proposition compared to Flipkart and will cater to a different target audience. We are committed to investing in this independent brand,” he pointed out.
New investments have also opened up doors for Flipkart who are facing stern competition from Amazon in the e-commerce sector. Spreading into an unorganised furbished goods sector is a bold move which could bring unexpected results. Despite facing curbs from the government who are proposing a bill to mandate the e-commerce industry, investments are pouring in for Flipkart and Amazon who have emerged as the leading players in the modern retail sector and marketplace.