Yet another ecommerce player is taking the advertisement route to make a little dough. Shopclues has introduced an advertising platform for its merchants. In association with online advertising technology company C1X, Shopclues has rolled out AdZone, a self help ad platform for its sellers. The sellers can bid for prime slots starting at Re. 1.
Shopclues co-founder and chief business officer Radhika Aggarwal said,
“This platform will immensely boost the visibility of products and maximise product views, thereby helping vendors to increase their business with us. The bidding system ensures transparency, while our differential bidding mechanism for products is essential for retailers advertising varied products.”
The test run has done well, says vice-president of products Arun Goel. Goel said,
“We ran a pilot with about 300 merchants on the AdZone platform, and the results were extremely positive. We ran 1,000 ad campaigns over a 10-day period, and our merchants saw a healthy return on their investment.”
Turning to other sources of income
Ecommerce companies are pulling up their socks and trying to turn profitable. Flipkart and Snapdeal have their own ad platforms too. With funds getting scarce, the going is getting tough for the industry. Discounts might pull in the buyers, but they will not help in making money.
‘We are not merging with Flipkart’, Shopclues
In the meanwhile, Shopclues’ CEO Sanjay Sethi has put end to rumours that the company is going to join hands with Flipkart. He said,
“Really speaking, it is not the fact. Of course, mergers help but do not guarantee businesses to grow.”
Sethi said that money would not be a compelling enough reason for companies to join their competitors.
Shopclues is taking measured steps towards a steady path ahead. Identifying the importance of payment platforms, the company has recently acquired mobile payment company Momoes. The company, which focuses on Tier 2 and 3 cities, is also creating opportunities for its sellers. It recently got together with GoDaddy to help its sellers create their own stores. The company also connected with Indifi to enable its merchants to get loans without much hassle.
It looks like Shopclues is following a balanced approach by keeping in mind both its sellers and profitability.