The American e-commerce company, eBay for most numbers of years was present in India as an independent e-commerce company. It was not the biggest in India but it was not a minnow either. It was doing great with its consumer-to-consumer and business-to-consumer platform. The company had its own base and was selling everything and was also involved in cross-border e-commerce deals. It was importing phones and the market was mediocre if not huge.
However, the company had to change its plans a bit in India after Flipkart made a sudden surge in the market. Flipkart rose to fame and eBay had to exist in India. The American company had something the Indian e-commerce companies did not have; global market. Flipkart, in 2017, entered a pact with eBay which allowed both companies to share a relationship and the market. Flipkart bought eBay India’s business for 5.44% of stake in Flipkart. The deal was made and about $211 million and $514 million cash investment after, Flipkart had their global outsourcing platform.
This deal, however, had a ticking time bomb over its head. Walmart was already looking at the Indian market after a couple of failed attempts to enter the subcontinent. It locked its eyes on Flipkart and a year later it was here with $16 billion in its kitty and barged into the Flipkart offices. Every agreement between Flipkart and eBay was thrown out of the door the moment Flipkart signed its ownership off. eBay, however, is not one of those companies which believe in backing off.
Indian e-commerce is in its early stage in India and it still has a long way to grow. Currently, only Amazon and Flipkart are the only major companies taking up almost the entire market in the country. eBay has plans and huge plans for India and now the users will be able to order things from around the world and they will also be able to sell their good on eBay.
There were positive words from Devin Weni, the CEO of eBay. He believes that sellers will be able to see eBay India again and this will create space for them. The market is still young and a lot of people need to exploit it before it burns out according to Weni. The eBay CEO also talked about possible collaborations as there are a lot of companies talking about collaborating with eBay. It will give eBay and those companies a fair chance in this market dominated by two companies.
That said, eBay is in India since New Year and they have started to gain speed now. The company has a lot of plans for India and it will be the only observation that will make us understand the phase 2 of eBay in India.