Business Model of FlipKart - How Does Flipkart Make Money
Business Model of FlipKart - How Does Flipkart Make Money
Business Model of FlipKart - How Does Flipkart Make Money
B2B / B2C / E-COMMERCE / MARKETPLACE / AGGREGATORS / INDIAN UNICORN STARTUPS / TECH STARTUPS
FlipKart.com the Indian Unicorn The poster boy of the Indian StartUp Ecosystem, is the center of attention
in everyones living room at the time of shopping for near and dear ones. While shopping and looting the
numerous discount offered by the e-commerce giant many a times people wonder how on earth does
FlipKart make Money? Does Flipkart even make money? What is the Business Model of FlipKart? How long
would FlipKart continue to give discounts to lure customers in? Here is a comprehensive analysis of the ECommerce Giants Business Model for the aspiring learners.
The total of Col I will be the total revenue of FlipKart from that particular sale, now the numbers here are
small and are taken for the ease of calculation in actuals these numbers are hefty and run into billions of
dollars (Ref: Total Loss of Flipkart for FY 14-15 was about 2000 Cr). This is the basic bread and butter for
FlipKart. There are other Revenue and Business Lines as well that FlipKart has. These are outlined and
explained in details below.
You may also be Interested in Reading: Amazon Business Model
2. Co-Advertised Physical Product across Publications: The large ads that you see in newspapers and front
pages of the magazines (if any) are shared with the brand that they are advertising. For e.g. If its a new
phone that is being launched and FlipKart hits the newspapers with a front page ad (the cost of ad is
shared with the other brand that is advertising the product).
3. Targetted Search Results: The moment you search for a product, FlipKarts algorithm decides which
sellers products come at the top. This space can be sold by FlipKart for additional revenue (I dont know
whether they are doing this as of now, but they will as news suggests)
This was the ultimate combo of the Business Model of FlipKart from all its revenue models across the product
chain and user base. Hope you love reading this. Please share and drop comments for any queries.
Disclaimer: The analysis of the business model of FlipKart or How does FlipKart Make Money is of the Authors
himself, neither the company (FlipKart) or its affiliates have confirmed the same to the author and the
descriptions, stats, facts and figures are either obtained through secondary web research or interrogation of the
users / sellers or other resources on the web. Please use your own discretion to use this info when required and
by continuing to read you agree to indemnify the author from all liability arising out of using this info on your
own.
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Revenue Model, FlipKart Valuation, How does Flipkart Make Money, How does Flipkart work, Revenue Model of
Flipkart
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23 Comments
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Dushyant Sawne
April 14, 2016 at 12:27 am
Fantastically put.. Was looking for such an explanation for long.. Thanks.
Unicorn Economy
April 14, 2016 at 12:37 am
Thanks Dushyant.
Sam
April 14, 2016 at 12:29 am
Ecommerce in India is a bubble. As usual, were 20 years behind the US. The internet bubble in the US burst in 2000.
We have about 4 years to go before everyone realises how poor the fundamentals of these companies are.
P.S. Amazon hasnt made money in 25 years.
Unicorn Economy
April 14, 2016 at 12:37 am
Hi Sam, Thanks for dropping by. Regarding bubble time will tell, but with amazon, both .com and AWS are 500
Million USD profitable since last financial year.
Sam
April 15, 2016 at 12:02 pm
Yes. After 25 years! And their stock got hammered that day.
pupul koley
April 14, 2016 at 12:35 am
superb analysis, can you also do snap deal ? they have three four investee co. which do not go with their ecomm
model, want to eagerly read that. tx.
Unicorn Economy
April 14, 2016 at 12:37 am
On the way
Chaitanya
April 14, 2016 at 7:51 am
Unicorn Economy
April 14, 2016 at 10:44 am
Kunal Bansal
April 14, 2016 at 1:54 pm
Great Article. Clear, crisp and easy to understand. Will look forward for you to decoding other ventures. Will like to
see AirBnB and Alibabas Business model, if you can.
Unicorn Economy
April 14, 2016 at 5:39 pm
ayush singhal
April 14, 2016 at 4:30 pm
really appreciate your work analysis. can you work on servicing and logistics sites.subscribe the newsletter.so we
connected with you and get updates time to time.
Unicorn Economy
April 14, 2016 at 5:44 pm
Thanks Ayush.
Senthil
April 27, 2016 at 6:37 am
Unicorn Economy
April 27, 2016 at 12:39 pm
Yes, not only by selling at discount, but also because of high marketing expenses and user acquisition cost.
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