Flipkart scraps more categories, stops shipments worth more than INR 10,000 in UP areas

Online marketplace Flipkart after downscaling its team size & discontinuing Flyte music store is now going further to optimize its approach to tackle challenges prevailing in ecommerce in India by discontinuing its consumer electronics category which include TVs, audio systems and large electronics including air conditioners, refrigerators and washing machines. The portal has also discontinued some of the travel accessories too.

After it has shut the Flyte music store, Flipkart has now removed the Flyte completely from the category section of the website, and has merged ebooks with its books category.

Adding up to all this, company had also announced that from now it won’t be shipping products more than INR 10,000 to customers in Uttar Pradesh and its nearby NCR regions. As per the company, the decision is purely business oriented. “There were numerous instances of customers ordering expensive goods on cash on delivery scheme and refusing to accept their orders. There have also been cases of fraud in which lost or stolen credit cards were used to book orders online,” said the company.

Flipkart is targeting a billion dollar in revenues by 2015, and has been working hard to reduce operational cost to increase net margins. The retailer now is targeting high margin categories of fashion and lifestyle and has also aligned its marketing approach with that.  As per a Quora post by one of its ex employee, “the company expects to reach 2400 crore revenue, but had managed to reach only 1300 crores this year. Hence, the VCs backing the company have taken matters in their hands.”

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Now with the global number one ecommerce player, Amazon also joining the party in India and a close competitor Snapdeal being backed by another global player, eBay, we would be keen to know how Flipkart will come out in its approach to become profitable, or will it be able to raise more funds? or will pitch for an acquisition? in times to come. Though it still enjoys the position of number one consumer brand for ecommerce in India as of now.