Ecommerce, News

Shopclues registers 22x growth since launch, claims 60% orders from tier 2 cities and < 2% COD returns, India’s first managed marketplace has witnessed rapid growth,registering 22X growth in traffic and revenue since its web debut. The company sold items through Facebook for 2 months before making its web debut on January 26th this year.

Talking about ShopClues strategy of selling via Facebook before going live on web, SandeepAggarwal, Founder & CEO, said “Social networks are a great medium to have an engaged audience which further fuels trust, friendship and drive transactions. On November 26, ShopClues had an engaged audience of only 3,000 through Facebook, a number that grew to over 62,000 by the time of its web launch and now stands at over 1,65,000.

To gain a bit of perspective, at the time of its launch, it had one of the slimmest Facebook communities in terms of engaged audience, however, currently ShopClues is amongst the top 15 Facebook community in the Indian ecommerce space.

Highlighting the split of orders between tier 1 and tier 2 & 3 cities, Agarrwal said “40 percent of ShopClues orders come from tier 1 cities with the remaining 60 percent coming from tier 2 & 3 cities”. According to Aggarwal, tier 2 & 3 cities have a massive base of potential buyers to drive the ecommerce market in India and ShopClues would witness a major chunk of its buyers emerging from smaller cities over the coming months.

Pointing out the split of orders across Cash on Delivery (COD) and plastic card enabled transactions, Aggarwal said that 60 percent of total transactions are plastic card enabled payment and rest is COD driven. Interestingly, it has less than 2 percent return rate on COD orders.

Currently, ShopClues has more than 200 sellers along with 250 global brands spanning across 22,000 products and every 3 to 4 weeks, it is doubling this number.

Sharing his thoughts on customer acquisition, Aggarwal said “consumer is king and we are obsessive about keeping our consumers happy and satisfied”. According to Aggarwal, simple UI, smooth & fast shipping experience clubbed with seamless payment experience are critical aspects to generate trust and drive transactions.

Welcoming the Government’s proposal on GST for ecommerce, Aggarwal said “new proposal on GST will help boost ecommerce immensely as there would be uniform GST across the nation”. At present, nonparallel GST structures add extra burden on ecommerce players while shipping orders to states such as West Bengal etc. “Parallel GST throughout the country will encourage local ecommerce and fuel further growth”, added Aggarwal.

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