Power Sellers Center, the leading eBay school in the US, today reveals that eBay Inc., is stepping up its investments in India in order to try and corner a market that is currently dominated by arch-rival Amazon.com and FlipKart, a similar auction platform dedicated to the Indian market.
eBay first stepped into the Indian market seven years ago, reports Power Sellers Center, but since then has largely proceeded with caution in what is one of the world’s biggest expanding online markets. Currently, the market in India remains relatively small, yet eBay believe that online sales in the country will grow at an exponential rate in the next few years, and are determined to grab a piece of the action.
Power Sellers Center stated that “talks of eBay missing the bus are somewhat exaggerated. Many of the Indian competitor firms practice a different business model to eBay, and are disasters waiting to happen. eBay on the other hand, has taken the cautious route, rather than throwing money into it without regard for profitability or sustainability.”
eBay is hoping to be able to establish its online payment business, PayPal, in India very soon, a move which Power Sellers Center states will appeal to a wider audience in a nation where most online merchandise is paid for on a “cash on delivery” basis.
Power Sellers Center believe that the potential for eBay in India is huge. Since its launch in 2005, eBay India has racked up some six transactions per minute, according to data from India’s Internet and Mobile Association. In comparison, the locally-based Flipkart records some 20 sales per minute, according to Power Sellers Center.
“eBay have quietly been waiting for the right opportunity to pounce, because it didn’t want to be caught up in a mad scramble,” says Power Sellers Center. “As we can see now, a lot of the new investment money has dried up, meaning eBay is perfectly poised to take advantage.
And what benefits do Power Sellers Center students gain from this?
“We believe that the Indian market is only going to continue growing. There is a huge demand for quality consumer products at the best possible prices in India. As the country’s disposable income continues to grow, this demand will only get higher. As such, the potential for power sellers to increase their businesses has never been so vast,” states Power Sellers Center.