Reliance to start its own e-commerce marketplace is in news, it is a great news for the Indian consumers. When someone said online shopping, it used to be Amazon, Flipkart, Ebay (for some time), Snapdeal and Paytm and few more on the web. Now another big gun is on its way to enter in the race of 100-billion-dollar industry by 2021.
Reliance Industry already has a retail subsidiary which runs Reliance fresh, Reliance smart, Reliance Market, Reliance digital, Trends, Reliance footprint, AJIO and few more under its belt. Stared in 2006 the company reached a turnover of Rs. 337 billion in the financial year 2016-17. Reliance now seek to enter the marketplace business.
What is an E-commerce Marketplace?
Marketplace simply means that the parent company allows other sellers to sell their products through their platform. This means Reliance will provide other sellers a site and technology which will be marketed and maintained by Reliance. Flipkart was earlier an e-commerce company and later changed its model to marketplace, Amazon always stated its business as a marketplace so on most of the e-commerce giants are in the marketplace model.
Amazon Vs Flipkart Vs Paytm Vs Snapdeal Vs Reliance Vs Indian Consumer
I really don’t know who versus who will win the e-commerce race but there is one who will always win, that is the Indian consumer. When these companies will fight among themselves to gain market share the consumer is going to rejoice and enjoy the race. The sellers will get another platform to sell, ultimate user will get further discounts.
It is wait and watch for policy for all consumers
Where Amazon has the technology of e-commerce, Paytm is backed by Alibaba, Flipkart has the knowledge resource of Walmart, Snapdeal has the youth but Reliance has the potential to take e-commerce closer to all consumers.
It is too early for us to decide on who versus who as we still expect to have lot of mergers, buyouts and consolidation in this space. Only time will tell us who gained the most.