Advantage Flipkart: The Motives Behind Acquiring eBay India

Flipkart recently acquired eBay’s India business in an announcement that made a huge splash across the country. With Flipkart already having acquired Myntra and Jabong, and talks of a Snapdeal acquisition picking up steam, this level of consolidation comes clearly as a direct response to internet behemoth Amazon’s aggressive expansion strategies in India.

With this acquisition play, Flipkart stands to gain primarily on two fronts.

eBay’s Seller Network

Firstly, eBay has built a strong network of authorized and highly-rated global sellers, something that Flipkart can leverage to drive increased sales and market share.

Per Flipkart’s announcement to the press — “Flipkart and eBay have signed an exclusive cross-border trade agreement, as a result of which customers of Flipkart will gain access to the wide array of global inventory on eBay, while eBay’s customers will have access to unique Indian inventory provided by Flipkart sellers. Thus, sellers on Flipkart will now have an opportunity to expand their sales globally.”

At DataWeave, we ran our proprietary data aggregation and analysis algorithms over eBay’s websites and unearthed some interesting numbers about their seller network.

eBay.com has a global network of 17,361 sellers, 41% of whom ship to India. Therefore, this acquisition opens the door for Flipkart to gain access to over 7000 global eBay.com sellers who ship to India — a huge boost to the range of products Flipkart can host on its platform.

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