Snapdeal and eBay are friends

[avi]

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Today I received an email from eBay, but it had ads about Snapdeal. After bit of Googling I found out that eBay is funding Snapdeal, since Jan 2013. Till today I had no idea about this.

I found an article on Forbes, explaining why eBay is funding Snapdeal. (article is more like a blogspam)

Today there was another news that Ratan Tata's investment in Snapdeal.

Why it is getting such a huge investment? Amazon is still in loss and correct if I am wrong, no company with similar business model is making profits.

Secondly, Snapdeal is getting bad reputation everyday, from sending counterfeit goods to HDDs with pre-installed Windows

 

[swatkats]

^ No matter Snapdeal is getting bad reputation now a days but the number of buyers are increasing and satisfied one's like me do not hesitate to go and buy again and again from reputed sellers + their marketing spending is matching Flipkart spending.

 

[Party Monger]

I have not had a single problem with snapdeal. Infact I have got a slightly higher model of webcam when i ordered. So may be isolated cases of rogue sellers. Or maybe its just me.

On the other hand, most VC/Angel funding is done on future prospects, not the current profit. Right now its Flipkart vs Amazon in the news but snapdeal has the cheapest products and the best discounts.

As for Ebay, they have been partners for a long time. Noticed this when ebay sent me a mail few months ago with partner offers.