How is Flipkart making profit?

ithehappy

ithehappy

Adept
Had to ask this. I purchased some clothes while FK was giving those 30% offers, and then some more with combo purchases, and I couldn't believe at what price they were giving away these stuffs. I got them today, and they are all tagged, just like how we purchase from Pantaloons or Westside, the difference is they take MRP and FK took less than half!
I don't understand how are they making profit with these transactions?
 
They are doing business in loss. But who cares they get all the money from foreign inverters.
http://www.nextbigwhat.com/flipkart-revenue-2013-297/[DOUBLEPOST=1388840968][/DOUBLEPOST]
the company reported a loss of Rs 281.7 crore in the year ended March, up from Rs 109.9 cr last year. Flipkart has a revenue of Rs 1,366 cr up more than 5x as compared to revenues of Rs 265.6 cr last year.
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IMO, Some corrupt politicians are moving their black money back to India by investing their money in companies in losses. On that way they are acquiring these companies slowly without paying any Tax.
In October, the Indian e-commerce company announced that it raised another $160 million to add to its previous round of funding. The Dragoneer Investment Group, Morgan Stanley Investment Management, Sofina and Vulcan Capital and Tiger Global have participated in the round.
The company had raised $200 mn in July from existing investors including Tiger Global, Naspers, Accel Partners and ICONIQ Capital. Earlier, Flipkart had raised $150 mn from Accel Partners and Tiger Global.
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there's a huge profit margin when it comes to clothes & that's the reason for these discounts
You'll never see such discounts on electronics & pc components
 
prateekS said:
Lol, then just think how much profit, pantaloons or Westside is making..
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Lol, that's the first thing my mom said :D
Anyway, I don't really believe they are facing any losses, but I am quite sure the profit ratio is very minimum. Whatever gotta love FK, still can't believe I paid 7k where I normally used to pay 10k! And no physical involvement is a huge thing for me.
Good bye Pantaloons, and some.
 
another thing I find remarkable in Fk is that there vast array of Items & their reviews, i mean from Premium pens to die cast Figurines..They got everything
Fk Made it Possible for me to Buy a Rs.250 Levis Vest with 50% discount after reading 7 Reviews of It.Really, Review of a vest :)
Like their notification policy and the in depth Searching/sorting mechanism
Also Like their no Coupon policy...just add clothes from the landing Page and prices are automatically discounted in Cart,that ensures that the buyer does not open another site to search for coupons,instead they stay on Fk only,thereby increasing the average page visit time per buyer.brilliant idea


heres a Tip for people who complain about High prices of electronic items on Fk - Dont buy!!
instead make your mind about the product on FK (by reading reviews,Comparison etc) then head over to amazon/Snapdeal and buy the Item...Simple..
 
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GuruGulabKhatri said:
heres a Tip for people who complain about High prices of electronic items on Fk - Dont buy!!
instead make your mind about the product on FK (by reading reviews,Comparison etc) then head over to amazon/Snapdeal and buy the Item...Simple..
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Not complaining just stating facts.
What i usuall do is compare and buy.
Sometimes i buy from the local dealer itself.
To give an example:
Yesterday I wanted to buy this dell monitor Dell S2240L.
In Flipkart the price is 9744
In Snapdeal the price is 9013
At Local dealer the price was 9450.

Now since i wanted the product immediately, I decided buy from Local dealer.
But apart from the price, It was always a pleasure dealing with Flipkart.
I really like the reviews on the products in flipkart. I checked for reviews in case of my monitor also.
The customer care is also very helpful and responsive. Like the Seagate 2TB external hard drive I had purchased from Flipkart was not working at all. So i raised this concern and the Flipkart guys came to my home with a new replacement and took back the old harddrive. That was pretty good.
Hence I almost never buy anything from other online sites except flipkart or ebay.
 
Yes, Flipkart's pricing of some products are high (the tech products especially), some are ridiculously high, for example I wanted to buy a Micro four third camera yesterday, EOS-M, and the price was 33k, where I found it on eBay for 399 USD. For pricing I think Snapdeal is best, but I have heard so many negative things about their delayed shipping and late refund policy, so I won't buy anything from them. This is where FK rocks too, I supposed to get those items on 6th, but they delivered 48 hours earlier, nice!
eBay as usual is good, top rated power sellers are great but some sellers are bad, regardless of their high star rating.
 
Since we are talking about clothing... Have you guys noticed the manufacturing date on the so called Discounted products? They will be more than 4 months old.. all the Left over stock comes to flipkart,myntra,jabong & they offer 20-30% discount on clothing. You should have noticed few branded factory outlets selling doing the same thing..

Flipkart is yet to become profitable and according to analysts it should become profitable business between 2015-2016 FY
Snapdeal and Amazon.in are Getting better with Good pricing and that gives a reason to avoid Flipkart. I agree to the fact that Snapdeal has got issues with Refund and stuff but look at flipkart marketplace sellers First. They aren't any better with refunds
 
Flipkart is not looking at profit in short term. Their aim like Amazon is to make buyers addicted to online shopping and specifically to their own site so that they do not look elsewhere for shopping. The prices for items are low only in new categories introduced by flipkart. The categories which are already present for long time have equal if not more price than usual market price. Once you get addicted to Flipkart you won't look elsewhere and then flipkart will start charging premium. If I recall correctly, Flipkart sells huge amount of goods every minute which site or retail company can boast that.

For example, when Flipkart started selling video games, their prices were unmatched in the market (games were discounted around 40% even new ones). The amount of shopping I have done from Flipkart is a surprise even to me. Today, Flipkart is biggest retailer in Video Games in India and their monopoly is reflecting in it. Games are no longer competatively priced and you can get games cheaper or at equal prices from ebay or other sites. Also, if anyone notices, the prices are not same every week for same game. I saw COD : BO2 prices go up and down every week on Flipkart.
 
True. FK is following the Amazon model. But 110% their end game is getting bought out by a giant like Amazon or ebay itself. I am yet to see some numbers than can be substantial from FK. Anyone?.

FK main key is their COD and delivery. Screw price. They want to replace local brick and mortar shops. You just click and wait, they will come to you and deliver.

Are they allowing Card on Delivery now?? Waiting for them to introduce Prime like service. :D :D
 
m-jeri said:
But 110% their end game is getting bought out by a giant like Amazon or ebay itself.
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Amazon would have done this already but the FDI in retail regulations will give them headaches. They couldn't do it earlier because the laws were not attractive and i doubt the picture changed all that much for them after legislation passed. Some segments, mostly brick & mortar chains yes, but not for internet vendors.

FK got that recent infusoin of funding in May because they are not likely to have a viable competitor any time soon.

m-jeri said:
FK main key is their COD and delivery. Screw price. They want to replace local brick and mortar shops. You just click and wait, they will come to you and deliver.
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If they offer things that cannot be found in shops then yes otherwise no. For my purchases i found the local shops to be very competitive but then i live in a tier-1 city and shops are close by. In tier-2 and below cities the picture will be different.

High value items i'd still go to a brick & mortar any day of the week even if they charge a little higher price.
 
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