NEW DELHI: Online e-tailers such as Amazon and Flipkart don't seem to be the only ones having to reconsider their trade models after the federal government tightened norms for foreign funding in e-commerce. Several massive model manufacturers that promote their merchandise on these platforms, too, are tweaking the way they do trade to protect themselves from the uncertainty within the sector.
These manufacturers, that have historically followed a wholesale solution to e-commerce — selling merchandise in bulk to huge distributors on these platforms — are now ramping up capabilities to develop into massive sellers themselves. In addition, they are gearing up to spice up sales via their very own e- commerce sites. The purpose in the end is to bring down dependence on online marketplaces’ alpha sellers.
“This season, our online sales are down 20-30% due to the continued reshuffle in Myntra and Jabong after Walmart took over Flipkart, while sales via our personal ecommerce web site doubled over final 12 months,” said the CEO of a world model retailer.
To boost up the transformation, these companies are investing in new capabilities. “It’s other than sending massive consignments in vans, as there can also be small-ticket orders such as a couple of trainers from a unmarried buyer,” said a senior executive at a sports wear corporate. “Returns from sale on online marketplaces might be as prime as 20-30%, so that must be controlled too.”
When contacted, a Myntra spokesperson said, “Myntra and Jabong continue to grow at a wholesome fee with a firm focus on handing over the best of favor and way of life for our customers.”
These manufacturers, that have historically followed a wholesale solution to e-commerce — selling merchandise in bulk to huge distributors on these platforms — are now ramping up capabilities to develop into massive sellers themselves. In addition, they are gearing up to spice up sales via their very own e- commerce sites. The purpose in the end is to bring down dependence on online marketplaces’ alpha sellers.
“This season, our online sales are down 20-30% due to the continued reshuffle in Myntra and Jabong after Walmart took over Flipkart, while sales via our personal ecommerce web site doubled over final 12 months,” said the CEO of a world model retailer.
To boost up the transformation, these companies are investing in new capabilities. “It’s other than sending massive consignments in vans, as there can also be small-ticket orders such as a couple of trainers from a unmarried buyer,” said a senior executive at a sports wear corporate. “Returns from sale on online marketplaces might be as prime as 20-30%, so that must be controlled too.”
When contacted, a Myntra spokesperson said, “Myntra and Jabong continue to grow at a wholesome fee with a firm focus on handing over the best of favor and way of life for our customers.”
E-commerce policy: Fashion retailers rejig business model
![E-commerce policy: Fashion retailers rejig business model]()
Reviewed by Kailash
on
January 05, 2019
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