Started initially as a Deal Site, Taggle shifted to purely ecommerce product site lately in 2011 which they say boosted revenues 10 times. “Service deals were not giving a good value to users which made us to shift quickly to products” as per Taggle.
However, citing the current cut throat competition in the ecommerce space Taggle quoted on their site “the current market conditions have many ecommerce players selling products at below cost price to lure users. The only way to sustain the business at this time is to get into a price war and burn a lot of investor money and try to outdo competition in a Last Man Standing game. This practice goes against our philosophy of building a sustainable and profitable company”. Taggle has decided to look for the better ways to move forward.
Taggle will be refunding Cash balance to the customers, but Taggle Points are not redeemable in cash, please see http://www.taggle.com/tos for details.
With the current scenario of lot of Global VC funding flowing into the current opportunity of ecommerce in India, there still remains question of sure returns. There is a long way to go for the investors to understand the clear picture of the India ecommerce ecosystem and to arrive at an equilibrium evaluation plus the establishment of customers’ loyalty to their stores. We will see in time to come that is the market actually a Last Man Standing Game or will it witness the beauty of economic equilibrium and is this just one company shutting down its operations.