ebay India shuts down; Flipkart to Rolls Out Platform for refurbished goods
Flipkart is shutting down ebay India. ebay India will stop taking new orders and is now directing users to Flipkart to buy and sell.
According to a statement by Flipkart: “ebay India will cease to exist. We will be launching a new value platform starting with refurbished goods very soon.”
Flipkart had acquired ebay’s India unit last year as it raised $1.4 billion from global technology majors such as Tencent and Microsoft. Along with selling its India arm, ebay had also invested $500 million for an equity stake in the Indian e-commerce giant.
“ebay.in has stopped accepting new orders. You can still register an ebay account on www. ebay.in and continue to buy and sell on www. ebay.com or other ebay sites internationally. Please visit www.flipkart.com to buy and sell within India,” says ebay on its website.
Users cannot use their ebay.in account to buy and sell products on Flipkart.
“Your purchase history will remain available on My Paisapay and My ebay until further notice. Your warranty will remain valid till its validity date. Please contact ebay.in customer support for any issues regarding your item,” the website adds.
Meanwhile, Flipkart is now planning to kickstart a new platform to sell refurbished goods – a segment that has stayed untapped by the e-commerce players in India.
According to a recent report in March this year, the global market for refurbished smartphones grew 13% year-on-year in 2017, reaching close to 140 million units. It also highlighted that India was one of the fastest growing mobile phone market for refurbished devices. At the moment, the segment has smaller players like Togofogo, an online market place which claims to have a 35% market share.
ebay had launched in India in 2004 through Bazee.com. The company also invested in e-commerce firm Snapdeal in 2013 but had to write off $61 million investment in February this year. The company lost a significant amount of market share to Flipkart and Snapdeal. The competition intensified further with Amazon’s entry into the Indian market. Apart from losing revenues, ebay faced a poor reputation among buyers and sellers. Customers were largely unhappy with the growing number of fake listings and poor customer support.