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Snapdeal Wholesale - shift from its original strategy

Snapdeal - countries 3rd largest e-commerce provider, has set up a wholesale unit called E-Agility Pvt Ltd. This new firm will register as one of the seller in the Snapdeal marketplace. This is following the footsteps of Amazon and Flipkart, which has its own subsidiry sellers listed as Cloudtail and  WS Retail respectivly. 

This is a major shift from the original strategy, were Snapdeal was following 100% marketplace model, means, they dont own any product, only provides its platform as service to different vendors to sell their product. Being 100% marketplace has lots of positives as well as negatives, positives like no need spend for warehouse capabilities, inventory management etc, negatives being less control on the delivery, also need to fully depend on the vendors to deliver the products. There also can be many instaces where the quality of the delivery may not match with the customer expecation. 

 

 

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