Flipkart Initiates New Schemes To Increase Profit

BANGALORE: E-commerce portal Flipkart will offer online advertising and brand consulting for vendors to allow them accelerate profit other than potential public listing. It’s almost like Facebook and Google where diversification into fee based business is aimed at chasing new high-margin revenue streams.

As per Flipkart sources, due to higher margins in furniture, the company has selected to expand this sector. His new advertising revenue thrust will see Flipkart as an online ad publisher much like Facebook and Google.

The furniture category is a highly profitable business with profit margins upto 40-60pct. "We will have an added focus on furniture category on our commerce platform, which we look to build ground-up," said Ankit Nagori, Head of Marketplace at Flipkart.

Flipkart’s new plans target to explore avenues that would help it turn profitable or at least lower its losses.

According to the website ranking site Alexa, Flipkart is the sixth-most visited website in India. It already has ads from brands like Max New York Life, Reliance General Insurance, ICICI Prudential, Franklin Templeton India and Bharti AXA, but earns only a little sum from this.
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