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Indian e-commerce story - Bleeding yet healthy!
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joel.francis.735 is on a distinguished road
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Question Indian e-commerce story - Bleeding yet healthy! - January 13th, 2016

Indian e-commerce story is like no other. A few years back no one liked the idea of buying online. People would line up at railway counters to book tickets as they did not even like the idea of booking tickets online.

Fast forward a few years and even cows are sold on ebay!

Here's an interesting mail I read got as a forward today.

5 years ago, nobody had heard about Indian e-commerce. And, today, the Indian diaspora cannot just get tired talking about the success stories of Flipkart and Snapdeal. Yes, Flipkart and Snapdeal changed the entire e-commerce scene in India, if there ever was one before. However, the picture is not as rosy as most Indians think.

Quikr registered a net loss of 440 crore in the fiscal year 2014-2015, while Snapdeal took the cake by registering a loss of 1350 crore in the same fiscal year. Amazon India and Flipkart are sailing in the same boat as well. This goes to show all inventory-led ecommerce companies are losing money in spite of massive media promotions, exceptional talent on board, etc.

So after all, who is actually losing the money?

The founders?? Nah. They are getting paid handsomely.

Customers?? Not at all. They have nothing to complain. After all, they are getting better offers and services.

Small retailers?? Again, a big NO. They are getting an excellent platform to showcase their goods/services and extend their reach.

Then it must be angel investors?? Again, no. They usually come out unscathed with 5X-20X of their investment.

VCs?? They are unlikely to lose money. They usually keep themselves sufficiently covered.

So who really loses the money?? Basically, no one. Not unless the company gets liquidated, and you are the last one left holding your share. Remember, it is an ecological cycle, and the Indian e-commerce industry has yet to achieve its maturity level
Where are we headed?

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