One of India’s branded eCommerce major; Snapdeal has increased the number of sellers on its platform since the past one year to more than three lakh, and is on track to meet its target of five-lakh sellers by the end of 2016.
The marketplace has been connecting sellers at a quick pace, riding on a $200-million (Rs 1,320 crore) investment earmarked for three years to strengthen the ecommerce firm's supply-chain capabilities. The run for the largest seller base has witnessed Indian marketplaces battle it out on the field through outreach programmes, technology innovation for sellers and working capital assistance, among other benefits.
Vishal Chadha, senior VP of market development said that the cost of seller acquisition has come down by almost 50 per cent since last year. The new sellers’ on-boarded are largely in the unstructured category of general merchandise or home and fashion.
He further added that the marketplace expects as many as 10,000 sellers on its platform to post sales of at least Rs 1 crore each. Recent definition of marketplace and guidelines issued by the government are against large merchants dominating the marketplace.
Vivek Gupta, partner at BMR Advisors said that the government has chosen to bless the marketplace model with some safeguards that the marketplace should not act like the retailer. In this scenario, it pays to diversify the seller-base on the marketplace. Pure-play marketplace models are banking on unstructured categories to bulk up the seller base.