- Snapdeal claims to have more than 500 K registered sellers on its marketplace with an emphasis on Tier 2 and Tier 3 cities. The company reported receiving about 92 percent of orders from non-metro cities in the first three days of Snapdeal’s Dussehra sale.
- Kunal Bahl said he posted the accomplishment on Facebook, “Setbacks are happening. This is reminiscent of 2017 when Snapdeal suffered a huge decline after Flipkart’s merger deal didn’t come through.
Indian eCommerce startup Snapdeal hit the highest number of monthly transacting customers in September 2019 in the midst of festive season extravaganza. Both e-commerce outlets have launched festive sales, increased inventories and even collaborated with retail stores to assist with logistics to tap into this increase in the number of shoppers.
A Forrester Research report predicted that e-commerce companies would generate sales of around $4.8 billion during the festive season this year. RedSeer also announced that festive sales growth in e-commerce in 2018 was more than twice the average annual increase in e-commerce site revenues. The study also expected a similar sales leap this year.
Realizing the tremendous sales potential during the festive season, Snapdeal announced earlier plans to launch three separate online shops offering critical pooja for Karva Chauth, Dhanteras and Diwali later this month.
Snapdeal claims to have more than 500 K registered sellers on its marketplace with an emphasis on Tier 2 and Tier 3 cities. The company reported receiving about 92 percent of orders from non-metro cities in the first three days of Snapdeal’s Dussehra sale.
RedSeer’s report also noted that most Snapdeal customers came from Tier 2 and Tier 3 cities in the last years ‘ festive season sales. “The 2018 festive sales showed that the event could deliver substantial y-o-y growth across all customer categories, especially in Bharat. We also expect to continue this pattern of massive growth in 2019, “said Anil Kumar, RedSeer Consulting’s founder, and CEO, earlier.
Is This A Comeback For Snapdeal?
Kunal Bahl said he posted the accomplishment on Facebook, “Setbacks are happening. This is reminiscent of 2017 when Snapdeal suffered a huge decline after Flipkart’s merger deal didn’t come through.
Snapdeal vigorously iterated its business strategy to build the Snapdeal 2.0 after the 2017 setback. Some of these changes included changing Snapdeal’s focus from premium branded products to branded seller products, selling Freecharge digital payment apps to Axis Bank, and more.
Snapdeal mentioned that a big number i.e. 80 percent of its customers are coming from tier 2 and tier 3 cities of India. It also says that the platform has on-boarded more than 60,000 new sellers in the last two years, who in return have added more than 50 million listings. Snapdeal has now more than 500,000 sellers with over 200 million listings on its platform.
In the FY18 and FY19 financials of the company, the effect of these attempts was reflected. In FY19, it was announced that Snapdeal increased its consolidated revenues in 2018-19 by 73 percent from INR 535.9 in 2017-18 to INR 925.3 Cr. It also succeeded in increasing its loss from INR 611 Cr recorded in FY18 by 71 percent to INR 186 Cr in FY19.
