On Online Marketplaces

I am not convinced about the online marketplace model. Flipkart is a case in point. I dont think late stage investors really made much money. Most of the other companies have perished as predicted by me earlier. Even with such high internet penetration, these companies are running huge losses as of now. They are trying to bleed each other to death.

Analysts will do an s-curve analysis. They say that once adoption becomes more mainstream, we will see an upsurge.

What if the customers become aware of their dirty tricks? And is the entry barrier really that huge? Is the first mover advantage going to remain with these companies ? I remain skeptical. Even if it works, it is not going to be a huge money spinner. They will have to figure out alternate revenue streams.

Technology can come to its rescue. AI and automation can drive down costs and increase revenues. We will have to wait and watch. But dont expect it to be a money spinner.

I think I have been proven right till now. I think Walmart will regret this deal. Regulatory risk in a country like India cannot be overlooked.

There are a lot of angles that need to be discussed.

Right now, not all the sellers are selling products on these marketplaces. As such, sellers get more buyers which allows them to work with lower margins. What if all sellers start selling? I understand that buyers will also increase which will have a compensatory affect.