One of the leading online shopping portals of the world eBay has recently invested a certain
amount, which it didn’t consider to disclose publicly, in one of the most
popular eCommerce firms in India Snapdeal. eBay has even started a
commercial partnership with the company, and it looks like this will help both
the firms in coming days.
As I mentioned the US-based
online market place didn’t disclose the amount of its investment, but according
to some reliable and trustworthy market pros the deal may value around $30-50
million. It has to be added here that this value size of the said deal also
adds investment by a popular Japanese firm.
eBay recently published an official statement to acknowledge the deal in
public. In its public the company said, “The
partnership seeks to drive more consumer demand for eBay and Snapdeal merchants
along with wider selection for India consumers in a rapidly growing market.”
However, eBay didn’t provide any information whatsoever on the actual
value of the deal size. It didn’t even disclose the name of the investors of
this deal. Currently we can only say that this deal might bring a new breeze of
air in the cloud of online marketplace of India, and we, the users are
desperately waiting for that to happen.
eBay needs to buck up its activity in the India market as its main
competitor Amazon launched its online marketplace in India very recently. eBay eventually has done a
lot of promotional works to take on Amazon and other online shopping portals in
India. It has spent a lot in the advertising purposes too.
While answering to the Internet & Mobile Association of India research,
eBay happily said that Indian e-commerce Market is expected to increase from $1.2
billion in 2012 to $1.8 billion in 2013. This encouraging growth rate certainly
works as a catalyst to eBay to invest in Snapdeal to strengthen its position in
this market.
Mr. Jay Lee, who is the active Senior Vice President and Managing
Director of eBay Asia Pacific, quoted, “The
growth of online shopping in India is at an exciting phase. We chose to partner
with Snapdeal due to their complementary business model, good management team
and strong brand.”
eBay was founded in 1995, and since it has gradually established itself
as one of the best online marketplaces of the world. It currently has more than
100 million active users, and it’s quite popular in India too due to its
awesome features like good customer support, low cost, ultra-fast delivery time
etc.
On the other hand Snapdeal started its journey in February 2010 in
India. It currently has more than 1,500 employees, who are actively working for
the well-beings of its coveted users. Snapdeal delivers products to more than
5,000 towns and cities in India.
I wonder if anyone will ever manage to bring all of the micro e-commerce environments under one roof. To me it doesn't seem like some of the smaller emerging nations would be worth the investment for Amazon or Ebay, but how about a consortium of small providers?
ReplyDeleteEmerging nations like India have done great businesses in E-commerce markets for last two years or so...though it would be great if all the small micro e-commerce firms come up under a single roof...thanks for commenting...I'll appreciate your further visits too....
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