Snapdeal now a service marketplace too! Tactic to boost GMV?

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Snapdeal is now in an ecommerce league of its own. The online marketplace is the first of its kind to offer online services for hotel reservations, booking bus and flight tickets and ordering food. In addition to this the marketplace has also dabbled into real estate and financial services.

According to the statement made by Snapdeal’s Co-founder, Rohit Bansal, this is a huge leap towards meeting all consumption needs of consumers. Out of the total ecommerce industry 87% is dominated by online travel, which consists of hotel bookings too. Bansal said by 2020 the online service industry will be worth $100 billion and will feed habit commerce in India.

How is Snapdeal facilitating service provision?

The Indian online retail platform offers services through Cleartrip, Redbus, Zomato and UrbanClap. As per reports on the subject, the application program interface (API) of Snapdeal’s service partners would be integrated with Snapdeal’s website and app.

“Most users in India carry smartphones, which have limited phone memory space. The launch of services is an extension of Snapdeal’s ecosystem, which aims to fulfill all consumption needs of its customers. Services is a big part of consumption and therefore this launch makes Snapdeal a go-to app for all the consumption needs,” Snapdeal spokesperson told YourStory. 

Bansal said Snapdeal is happy about its new partnerships, “We are thrilled to partner with Zomato, Cleartrip, UrbanClap and Redbus to bring to our users the best of choices for food, travel and personal services. We will continue to add leading service providers from other categories in our journey to offer a single point access to the widest range of services.”

According to him the online marketplace is confident about this step and sure of it bringing them closer to their 2020 goal of 20 million transactions as day.

Forming formidable partnerships

Snapdeal’s service providing partners are excited about joining forces with the online retailer. They see it as a beneficial relationship for both sides and an interesting way of boosting the ecommerce industry.

“Services and products come together to make the user experience complete and we are excited about the possibilities through our joint effort,” Varun Khaitan, co-Founder UrbanClap said about their partnership with Snapdeal.

Zomato Co-founder and CEO, Deepinder Goyal mentioned this partnership would result in a win-win situation. The restaurant search and food ordering company plans on tapping into Snapdeal’s large consumer base and improving the efficiency of ordering food online.

Snapdeal needs this more than other Marketplaces?

Snapdeal has witnessed a $1 billion fall in its GMV and it appears Shopclues is ready to take its spot on the leaderboard. So will this step bring in the desired number of purchases and push their GMV higher?

Also online sellers claim that the online marketplace keeps changing its policies to suit their own needs. Will the addition of services to the platform take away focus from online seller needs even further?

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2 Comments

  1. Not sure whether this is going to help .As people are mostly looking for segment related apps for booking,it may not generate much revenue for snapdeal.

    They should concentrate more on their core business as these days people rarely see great things from them

  2. I advice all the seller who sell the product on snapdeal beware from them because there:

    Payment schedule
    Return Policy is not good
    Snapdeal is not for seller support
    They always trying to stuck your payment
    In one word snapdeal is cheatet

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