Nearly two months after it acquired sports and fitness focused e-retail venture,Esportsbuy.com, e-commerce company, Snapdeal, has shut down the site, according to a report by Techcircle.in. Snapdeal had acquired Esportsbuy.com for an undisclosed amount, however some reports had estimated the deal to be in the Rs. 50-70 crore range.

Snapdeal.com launched its own sports section right after acquiring Esportsbuy.com. At the time of writing this article, Esportsbuy.com redirects to Snapdeal’s ‘sports & hobbies’ section. Esportsbuy was founded by two IIT Delhi graduates Prateek Agarwal and Amit Monga and the entire team of Esportsbuy joined Snapdeal post-acquisition.

Time for consolidation?

Of late, the e-commerce space in India is going through a stage of consolidation. The cost of customer acquisition for e-commerce sites have been so significantly high that some portals are running into losses. Running two stores doubles the cost which can be avoided by integrating operations post-acquisition. Yesterday, Flipkart closed down Letsbuy.com,  the electronics and gadgets focused ecommerce store, just three months after the acquisition. Like Snapdeal, Flipkart also integrated some of LetsBuy’s products into its own catalog.

It appears that as small players in e-commerce space fail to gain customer loyalty, and are not able to sustain in this highly competitive market, we might see similar acquisitions, where big companies would buy niche ventures and consolidate operations. Another trend we notice, is that as e-commerce gains customer traction, more and more customers opt for large players, bigger brand names, that offer a wide range of catalog instead of shuttling between niche and lesser known e-stores.