Among the Big 3 Online merchants, the total loss for 2015 is more than 5000 Crores. Amazon loses 1700 crores from 1000 crores of sales. For every rupee of their income, they are spending ₹1.70, becoming profitable is a distant dream. Close to a billion dollar worth of money splurged by these online businesses on the Indian citizens in anticipation to make a big buck on a later date. It works to about ₹40 per Indian as we have a population of 125 Crores. And this means, each individual in India has profited ₹40 in 2015 just because of the belief & trust the investors worldwide have on the potential of our markets.
With the online market place business expected to grow at an average rate of 5 times the current business in the coming years, at least that is what these companies are projecting to their investors, the magnitude of loss is also going to multiply if not at the current pace, at least to some extent like 3 times. And this means that, the investors in the online businesses are going to throw away about another 3 Plus billion dollars into the Indian markets in the name of capturing market share.
Whether the e-tailers are going to capture market share and are able to make good of their losses, is not known, while in the bargain the Indian population is going to make big gains. Looking to have another ₹100 each as profits through this mad rush is possible in 2016 and it will continue till the deep pockets of venture capital funding gets dried out. Not all of our population will get the benefit, while the users of online market place in India is expected to be 40 Million in 2016 as per a report by NDTV, this 40 million people are going to get a share of the $3 billion loss that is going to happen. And it means a profit of ₹4500 for each user in 2016. There is a good amount of money out there for a grab……. Take advantage, enjoy shopping online.
Beyond the Online market place there are other service providers like OLA, UBER, BIG BASKET, etc., who are investing 100’s of crores to capture your market share and show to their investors which is success according to them. There is big money coming your way while you enjoy the technology that is going to come in as a new experience. Enjoy and earn too……
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