In the race for the top spot in the online selling space, Shopclues has announced its latest offering – Online Wholesale platform. Shopclues will launch its online wholesale shop this week, operating from its main site itself for now. It will be the first of its kind in India with products from various categories like electronics, health and beauty, fashion and home goods.
This online wholesale shop model will be operated like an offline wholesale shop where the wholesale traders can : – list their stock in bulk and sell them at wholesale prices (2-3% lesser than retail for electronics and upto 50% lesser for apparels) – give credit to the customers, by taking a certain amount upfront and the rest as installments – buy back the unused products from the retailers after a period of time – set a minimum order volume for a product – offer different prices/discounts depending upon the discount Currently, other sites like Flipkart and ebay allow customers to buy in bulk but the purchase is limited to the number of products in stock. Comparatively, ebay has larger bulk listings. However, the price is not volume dependent. Online retail business has so far attracted the attention of investors and retail advisory Tecnopark has forecast an investment growth of upto Rs 3.5 laskh crore in 2023 from the present Rs 12,400 crore. Most recently, investors have poured in nearly Rs 1 billion into sites like Flipkart, Myntra and Snapdeal. While it’s a new concept in India, the wholesale selling scenario has already gained popularity in some other parts of the world, with some companies emerging to be standalone companies. For example, 1688.com, China’s business-to-business platform sold products worth over Rs 4,200 crore last year. In India, sites like IndiaMart and Alibaba list wholesale traders with their details but do not allow transactions through the sites. With the new business model, Shopclues will have an edge over the other competing sites and can create a niche for itself in the segment. The concept of online wholesale selling is lucrative and has the potential to grow. It would give an edge to the wholesaler when compared to its competitors. However, a most basic question may not have a definite answer at this point – can logistic companies in India handle shipping and delivery of bulk orders in a timely and efficient manner? Online wholesale shop is a good starting point for people who want to start selling online, to source products. For existing sellers, it is another place to source their products from, since Shopclues online wholesale shop may provide better prices than the sellers’ existing suppliers for certain products.