Wall Street Takes Cares Of Online Buyers In India

An insider source from Snapdeal, said, “By offering discounts, e-tailers are looking to expand the market. The bigger the deal a customer gets, greater the chances of her shopping online,” reports the Times of India.

Snapdeal has raised $627 million recently led by Japan's SoftBank and is on target to hit annual sales of $2 billion, while Flipkart is said to be approaching a whooping $5 billion in gross merchandise value (GMV) for 2014-2015. Amazon said earlier this year that it intended to spend $2 billion on its India operations without setting a timeline. E-tailers typically make anywhere between 5 percent and 20 percent of GMV depending on the category.

It is worthy to note that these e-commerce giants have spent about 12 crore on advertising across print, television and digital platforms. These six e-commerce players would now be among the top 25 advertisers in the country.

Sandeep Ladda, technology leader at consultancy firm PricewaterhouseCoopers said, "Given that e-commerce players experience longer gestation cycles, the strongest player with a backing of marquee investors is likely to clinch the game and there could be a consolidation in the marketplace," reports TOI.

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