Flipkart did it last year, now Myntra is planning to open its online retail platform for small and medium retailers. The company, in one of its recent developments has announced that it is soon launching a new hybrid marketplace wherein local merchants will be able to sell their products through its website.
The upcoming marketplace is expected to be launched in a couple of months time and is said to be a move by Myntra to increase its profit margin and expanding its reach to India’s smaller cities and towns. The company moreover expects to have about 500 vendors signed up within the first year of its operations.
“People want to express their thoughts or feelings in their own unique way, something that reflects their personality. I saw a huge potential for personalised merchandising and decided to tap into this potential, so Myntra is a result of that conviction. We have established that the Indian market is ready for such an offering and are very bullish about the outlook for next few years,” says Mukesh Bansal, CEO, Myntra.
The company announced that under this model, it will not store any inventory of the local retailers but will link sellers and buyers. But there is still no clarity in terms of who will fulfill the logistical needs in the model. Also, the website is yet to confirm whether the new marketplace will function through a separate platform or will be attached to the parent portal.
The announcement follows Myntra’s recent funding of USD 50 million from PremjiInvest, when the company shared that a part of the funding will be used to build its marketplace platform and other related technologies.
Selling on online marketplaces in India
Indian eCommerce market has recently seen a dramatic trend wherein several big players including Junglee.com, Flipkart.com, Infibeam.com, ShopClues and Tradus.com launched or converted to the marketplace model.
Adoption of a marketplace model, where on one side allow these companies to bypass inventory related costs, on the other side it helps them to expand their product range and increase the geographical reach.
But how it helps an independent retailer is the key question. Before moving ahead with the setting up of your store on an online marketplace, it is important to understand how they operate in order to get most out of it. Learn from experts about the Good, Bad and Ugly side of selling with an online marketplace in India here.
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