Flipkart ready to jump into global ecommerce via eBay & level up with Amazon


According to a RedSeer survey, Flipkart shares the same level of popularity with online marketplace Amazon. In fact, during the first quarter of 2017, the US-based etailer took the lead with a 65-70% growth in sales. Homegrown etailer Flipkart is not one to stay down for long though. The ecommerce platform recently secured eBay and $1.4 billion in its kitty.

Through the funds it obtained the online retailer plans to experiment with new business aspects and with eBay in its corner, Flipkart aims to access the export market and compete with Amazon on new grounds.

The cross-border ecommerce markets are worth multi-billion dollars and are likely to reach $1 trillion by 2020. Both Amazon and eBay have global seller programmes for sellers in India to sell their wares abroad. Flipkart lacked this feature, but with eBay entering global online retail should be easy.

Catching up with Amazon abroad

Amazon realised the potential of on-boarding Indian exporters last year when it launched its Global Selling Programme in the country. Around 20,000 Indian sellers are a part of the programme and have listed approximately 45 million products abroad.

Flipkart finally has a chance to penetrate the overseas market and level up with Amazon via eBay.

A spokesperson for the Indian etailer said, “eBay, being a pioneer of e-commerce globally, has a unique position in the market that will be a great addition to Flipkart’s strong presence along with its group companies. The deal with eBay gives Indian customers access to eBay’s vast international product catalogue, while also giving Indian sellers a platform to sell in the global markets that eBay operates in.”

eBay offers Indian sellers access to a wide range of international ecommerce markets like Germany, Australia, UK and the US. In a regulatory filing in the US, eBay mentioned it would pursue international trade opportunities together with Flipkart.

Potential of cross-border ecommerce

The India government recently began encouraging exports through ecommerce channels. This makes it a perfect time for Flipkart to have eBay on its side. Under its 2015-20 foreign trade policy, the Union Government offers incentives to encourage exporting via websites and shipping through courier or postal services.

“Goods falling in the category of handloom products, books / periodicals, leather footwear, toys and customized fashion garments, having FOB value up to Rs 25,000 per consignment (finalized using eCommerce platform) shall be eligible for benefits under FTP,” states the Indian FTP 2015-20. The incentives for ecommerce exports in ecommerce fall under the Merchandise Export from India Scheme (MEIS).

“Cross border e-commerce is silently growing in India with customers buying electronics accessories from Chinese websites as well as boutique fashion from European and US portals. The propensity to buy from international sellers are increasing. On the other side, Indian sellers in specific categories like bags and fashion are today listing in global websites. This trend is expected to continue and soon we will see sellers from across the globe having presence in the marketplaces that operate in India,” mentioned Sreedhar Prasad, Partner, E-Commerce & Start-ups, KPMG India.

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