A few weeks earlier we had predicted that ecommerce in India will soon consolidate to just a few big players, with the smaller online shopping sites either withering away or simply being taken over by the bigger online marketplaces. Recent figures indicate that this change is not too far away.
Several shopping portals like Zovi, Yepme, FashionandYou and Shopclues are yet to touch the Rs 100 crore sales mark, despite doubling their sales over the past two years. In contrast, big players like Flipkart, Snapdeal and Jabong have made between Rs 500- 2,800 crore in sales for 2013-14, according to filings with the Registrar of Companies.
How to face the competition
According to Devangshu Dutta, chief executive at retail consultancy Third Eyesight, “For every successful online retailer, there are at least 10 others which have either shut shop or got acquired.Smaller players should have some key differentiator so that customers can give business to them instead of competition.”
This is exactly the tip we had featured in our Seller Speak article. Prem who manages Onlinewale.in, believes that “Many e-commerce companies are part of the ‘me too!’ syndrome or a clone of already successful ecommerce companies. In doing this they are doing more harm to their start-up as people remember only unique companies. They are killing the USP of their start-up; instead they should streamline focus on particular subjects.”
The fact that bigger online marketplaces are giving other smaller online shops tough competition should not deter an enthusiastic online seller. By offering unique products and services to consumers, it is still possible to have a loyal fan following.
In short, here’s what we think is important to keep your sales going: to stand tall in the face of competition, stand out from the rest. Stay different, stay successful!