ShopClues to launch online wholesale marketplace: What’s in store?
The online wholesale model will function just like the offline one, but will offer services such as bulk purchase and buyback to retailersBy Saloni Surti 04 Mar, 2014
While we are still struggling to understand the potential of the online retail space, now a wholesale business model too is just a few clicks away.
Indian online retailer ShopClues.com has announced launching its online wholesale shop. The wholesale website will be a part of ShopClues’ main site and will open this week. According to a report by The Economic Times, ShopClues’ wholesale website will be the country’s first online wholesale model that allows retailers to buy products in bulk at wholesale prices.
Sanjay Sethi, Co-founder and CEO, ShopClues.com was quoted in the report saying, “We could already see that a number of our buyers were purchasing in bulk on our retail platform. We decided to actively enable this.”
The online retail space in India is highly occupied and competitive. A wholesale model can give ShopClues an edge in this scenario.
According to a report by Business Standard, ShopClues is eyeing a gross merchandise value (GMV) of Rs 1,000 crore (nearly US$162 million) during 2014-15, with net revenue of around Rs 150 crore (nearly US$25 million). Online wholesale store could help ShopClues achieve this target.
ShopClues is planning to launch its wholesale marketplace with nearly 60 merchant listings across categories such as electronics, auto accessories, health and beauty, fashion and home goods. The wholesale prices for mobile phones and electronic gadgets will be two to three per cent lower than their retail prices. For a category like apparels, the difference could go up to 50 per cent.
The online wholesale model will work more or less like its offline counterpart. Wholesale merchants will be able to set a minimum order volume for a product. Also traders can offer credit, where retailers will make a part payment upfront and the remainder could be paid in installments. Wholesale traders could also offer to buy back unsold products from a retailer after a defined period.
Currently online marketplaces such as Amazon, SnapDeal and Flipkart allow their users to do bulk shopping. However, the scope of wholesale in this case is restricted because number of products in each size is limited due to the retail model of these websites.
Image Courtesy: ShopClues