How do E-Commerce makes profit ? | @flipkart and @amazon | Honest Talk

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How do E-Commerce makes profit ? | @flipkart and @amazon | Honest Talk

Flipkart is not making at "profit" at all. They have received vc funding & they are using this funds to run the business. They have to sale their stake in their company to funds provider.

"Earning Profit" is not looking their prime agenda. They just want to create brand. But in this situation they will keep needing money time to time. Almost 70% of orders are coming as Cash On Delivery method. COD method is big hurdle in e-commerce. It's add cost to each order they delivered.

They all are loss making company’s whether you see Flipkart, Snapdeal, Amazon, Paytm etc and all are standing on Funding give by the Angel Investors, Venture Capital etc.
As far as there revenue generation is concerned they are likely to come through advertisement, commissions on sales, commission from banks and logistics (Delivery Charges), Prime Customer Charges,.

Only thing to look at is how many company’s will be able to sustain this loss and upto what time. Till how many years they will be dependent upon the fundings.
At the end of the day will this ecommerce bubble will burst or will remain flying.. thats the questions..?

#flipkart #e-commerce #amazon #snapdeal

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