If you somehow remember, which is in fact a rare chance, Snapdeal had acquired a mobile marketplace named Shopo in early 2013. However, ever since its acquisition, the app has been in stealth, leading to speculations that Snapdeal might be brewing up something of its own, on tech taken from Shopo. That however, doesn’t appear to be true.
Discovered first by YourStory’s Jai Vardhan, the app has apparantely re-surfaced, with offerings spanning across 14 categories including the usuals like men & women apparels, beauty & cosmetic and electronics and others.
Shopo, gives an instant edge to Snapdeal over rivals like PayTM, largely due to a one significant difference. While others such as Paytm require merchants to pay at least a transaction fee , Shopo is completely free — charging neither a commission nor a transaction fee.
The move comes at a time when commerce through mobile is going through a rapid growth with websites such as Myntra — which started out as e-retailers — closing shop on the web and focusing solely on sale through mobile based apps after most of their revenue seemed to be coming from smartphones. Snapdeal is no exception and according to claims, over 75% the orders processed by it come through mobile.
Other e-retail giants such as Flipkart and Amazon, already have their own mobile apps and are thus further ahead in the race. However, as they charge a commission per sale to merchants, Snapdeal’s Shopo is taking the Paytm introduced Zero-commision model one step further by not requiring the sellers to pay even any transaction fee. What’s more, merchants do not need to produce any documents in order to process transactions on the platform and as per claims, one can Click, upload products and sell – all within 15 seconds.
Well, Shopo is bound to attract sellers in droves, who would be all too eager to keep as much of the money they make as possible, and if Shopo can provide them with a strong consumer base, merchants would probably prefer to sell here rather than anywhere else. From the consumer perspective, more profits to the merchant could just mean more competitive prices and deals. And hell yeah, who doesn’t want that ?
The move is bound to raise waves in the e-commerce market as other e-retail giants will be forced to think of ways to keep sellers from migrating to Shopo. Meanwhile, it would be interesting to see how consumers and merchants alike respond to the brand new mobile market.
Snapdeal’s CEO Kunal Bahl is slated to announce the launch of Shopo on July 15 in a press conference in Delhi.
FEATURED IMAGE : YOURSTORY // JAI VARDHAN