The ecommerce GMV games continue on as some etailers plan to double their numbers. The top three contenders in the GMV race Amazon, Flipkart and Snapdeal acquired the following places (according to numbers from December 2015 to May 2016):
#1st place – Flipkart with a GMV increase from $3.8 billion to $4 billion
#2nd place – Amazon with a GMV increase from $1 billion to $2.7 billion
#3rd place – Snapdeal with a GMV decrease from $2.2 billion to $1.2 billion
Snapdeal’s comeback is to beefed-up logistics and delivery?
Snapdeal might appear to have fallen behind but the marketplace didn’t let a little decrease in GMV get it down. As per recent investor presentation, the marketplace’s investor, Softbank, noticed a 90% rise in GMV, for the period ended in 31 March 2016. The ecommerce firm is targeting a GMV of $8-10 billion for FY 2016.
The home grown marketplace plans on using its numerous technology based acquisitions to do so. The plan behind these acquisitions is to meet demand effectively through an improved logistics and delivery system.
Snapdeal’s CTO and head of products, Rajiv Mangla said the marketplace has been working with some partners to establish a plug and play logistics system. He also stated that with the use of technology they can optimize operations and manage work force. With the data acquired packages can be tracked and predictions of delivery time can be made. All of this will result in reliable demand predictions and better managed inventory.
The ecommerce platform presently has:
- Warehousing space of about 1.3 billion square feet
- 63 centers in 25 cities contributing to 80% of all deliveries
- the fastest product delivery time (says PwC and Red Seer findings)
Shopclues ready to compete with $3 billion GMV?
Another home grown marketplace also plans on pushing its GMV this financial year. Shopclues Chief Business officer, Radhika Ahai Aggarwal said, “We are planning to close financial year 16-17 at annualized GMV rate of $3 billion.” The etailer’s recorded GMV sales for the last financial year came up to $1.2 billion.
Shopclues plans on giving its GMV a boost through its fairly recent fashion category with:
- A total of 150,000 sellers under the category by year end
- Branded merchandise from Puma, Wrangler, Lotto and American Tourister among 250 other brands
- Affordable apparel like sarees with starting prices at Rs.99
Which online retailer will meet their GMV target and at what cost?