Flipkart is shutting down eBay.in operations and will reportedly launch a new marketplace to sell refurbished products by mid-August this year, reports The Economic Times. According to the publication, the company will stop the transactions on eBay.in from August 14 and will redirect the users to the new platform.
Flipkart’s CEO Kalyan Krishnamurthy reportedly wrote in a mail to employees that Flipkart has built a “brand new value platform launching with refurbished goods…the new platform would have a different value proposition compared to Flipkart…will ensure that all eBay.in sellers and customers migrate to the new platform over time…It would cater to a different target audience…We are committed to investing in this independent brand”.
MediaNama has written to Flipkart to get more details on this, we will update the post as soon as we hear back from them.
Flipkart had acquired eBay’s India business in June 2017. In May this year, eBay had announced the closure of transaction and said that it will relaunch eBay India with a differentiated offer to focus initially on the cross-border trade opportunities. In a statement, it added that will be ending its current strategic relationship with Flipkart, which includes unwinding its commercial agreements with Flipkart and terminating Flipkart’s license to use the eBay.in brand.
eBay entered in India in 2005, but it struggled against players like Flipkart, Snapdeal and Amazon. It eventually made a ‘strategic investment’ of $133.77 million in Snapdeal in 2014, to “drive eBay’s global e-commerce leadership”. However, Snapdeal has lost out in the number of orders and users while the others have grown the share. In February, eBay said in its annual report that it incurred losses worth $61 million (about Rs 392 crore) on its investment in Jasper Infotech, the owner of Snapdeal.
Now that US major has acquired majority stakes in Flipkart for $16 billion, the main e-commerce battle will be between Flipkart and Amazon in India. It will be interesting to see what eBay will offer when it relaunches in India.