Flipkart has come to a conclusive resolution to shut down the eBay online shopping platform. This move is to basically accommodate room for their new marketing strategy. Their new plans aim to set up another shopping platform that rivals the OLX.
They are eying big by taking into account the colossal Indian online customers. In short, they want to overtake the Indian online marketing by storms in the coming years. This move, when initiated successfully, will make them rival with the Amazon at the international level, in the coming years.
Flipkart’s new strategy
According to their CEO, the Bangalore-based Flipkart will be launching a new platform for selling refurbished goods. He made this statement after the recent developments with the eBay. The eBay will be concluding all the customer transactions by early August. The Flipkart’s eagerness to the shutdown aims to make a smooth transition over its new platform. It wants to gain back the trust of the customers and become a brand for the same.
Flipkart is planning on collaborating with the Info solutions and services in their group portfolio. The prime motive for this launch was completely emphasized over bringing round the sorted out key barriers and the trust, faith, and convenience of their customers. These were the most highlighted out words spoken by Flipkart’s CEO, Mr. Kalyan Krishnamurthy.
Flipkart and eBay in Incompatible Waters
The recent affair of Walmart making the 77 percent stake over Flipkart is said to be the catalyst in eBay pondering over parting ways from their partners. The decision of parting ways is also a consequence of diverging interests.
The reports of a tiff in the partners started doing the rounds in May. It fuelled when eBay asserted the termination of Flipkart’s license of using eBay as a brand. All the unwinding commercial agreements with the Flipkart will also be ending on a very final note.
Moreover, another aspect to throw a light on is that the US-based eBay services had already sold to Flipkart its Indian operations. They had paid $500 million for a stake of about 5 percent in the company.
Plans for the New Platform
- The Flipkart CEO seems to be boosting of a promising new online shopping platform already.
- He even made a remark that they will ensure that the eBay customers will migrate to their new platform over time for an enhanced experience.
- The new platform will have some different valued propositions as compared to the Flipkart.
- This time it will cater to a different target audience.
eBay India’s New Strategy in Development
The Californian based eBay will now soon be planning to relaunch eBay India. They have future plans after selling their shares worth of $1.1 billion of its stake in Flipkart to the US giants- Walmart. For the Indian competitors of online second-hand goods’ market leaders- OLX and Quikr, it sounds of an impending doom. They will be stood out or pitted against Flipkart for selling the used products or goods under the headquarter e-trailer. As a result of it, eBay will be seen on a shutter down phase which is one of the topmost e-commerce running sites.
In a Nutshell
Times never remain the same for everyone and in this era of the stock market, the partnerships are meant to be broken for respective interests and benefits.
Any decision has some negatives and positives related to it; what matters is the perspective of the people towards it.
What do you think regarding this open and shut partnership between these leading online platforms? Please share your opinion below