eBay chalks out India comeback plan with export business for Indian sellers
eBay, which ended its strategic partnership with Flipkart following the Walmart deal, is coming back to the Indian market by starting its export business for Indian sellers to sell across its major markets.
eBay is also taking over the eBay.indomain from Flipkart, a company spokesperson has confirmed to Hub9. “We are immediately focused on the cross-border trade opportunity and encourage India-based sellers to continue to take advantage of eBay’s global platform and sell to customers around the world,” a company spokesperson said.
Flipkart had acquired eBay.in last year when it raised $1.4 billion in funding from eBay, Tencent and Microsoft. eBay had at the time invested $500 million in Flipkart and is exiting with gross proceeds of around $1.1 billion.
The Walmart-owned e-tailer had shut down the eBay.in platform earlier this month and had stated plans to set up its own platform for refurbished goods, which was unveiled as ‘ 2GUD’ yesterday. eBay India had a base of 4 million buyers at the time of the announcement of the Flipkart merger.
“In India, we will start with export meaning Indian sellers selling on other marketplace platforms around the world that was something that we turned over to Flipkart. We are going to get that back upon the closing of the transaction. So, we will light up the Indian seller base to sell across all of our major markets,” eBay CEO Devin Wenig said in the company’s earnings call earlier this month.
Wenig said the second phase would be restarting its operations in India “with a differentiated import inventory” but declined to disclose any specific timeline on the launch.
In July, ET had reported that eBay has held talks for a merger with a few e-commerceplayers, including ShopClues for re-entry into the Indian market. The talks could also lead to ShopClues’ acquisition by eBay, a source had previously told ET.
eBay had first entered the Indian market in 2004 and began operations through the acquisition of News Corp-backed Bazee.com, however, it struggled to capitalise on its first mover advantage in a market dominated by Flipkart and Amazon India.
In 2013, the California-based e-tailer also picked up a significant stake in the online retailer Snapdeal, however, it eventually wrote down a $61 million investment in the Delhi-based company in February this year.