Snapdeal to focus on tier 2, 3 cities for growth

By

Maverick Martins

Published
May 10, 2019

Indian e-commerce major Snapdeal will continue to focus on tier 2, 3 cities for growth in the Indian market and is looking to expand its product offerings by expanding its seller base to cater to a wider customer base.
 

Snapdeal has also said that it has no intention to enter the private label business as it would harm the interest of registered sellers on the platform.
 
The company has strengthened its seller base by getting onboard 50,000 new sellers during the last financial year and currently has a seller base of around five lakh across the country.

Sellers from Delhi and Gujarat make up a large chunk of the seller base for the e-commerce company which sells products in around 600 categories. Most of the sellers on Snapdeal are from the brick and mortar market and have witnessed strong growth online over the years.
 
“Snapdeal is on-boarding local sellers who understand customers in tier 2 and tier 3 cities and hence offer products that are relevant for such customers,” PTI reported citing Snapdeal’s senior vice president Rajnish Wahi.
 
“Snapdeal has no intention to launch private label products. We were never in the private label business. We have understood the segment. There tend to be higher margins in private labels. But that is not in sync with our philosophy,” Wahi added.
 
Snapdeal offers free registration to sellers and charges 5 to 20 percent commission from them. On the back of strong sales, Snapdeal had narrowed its losses during the fiscal year 2017-18 to Rs 613 crore ($87.6 million) from Rs 4,647 crore it had posted the previous fiscal.