Technology lures every investor and E-Commerce is built on technology. Investors are putting money blindly in ECommerce companies and this has made ECommerce sector a hot deal.
Valuation of E-Commerce companies are at peak and I do not see any depreciation in valuation in near future.
Consumers are also liking change in shopping trend and who does not like discounts.
E-Commerce is in hike due various reasons and if we put these reasons as per different users here is the analysis.
Why E-Commerce startups are cool to own?
Valuation of E-commerce startups is at peak and everyone wants a slice of it. We see everyday a new shopping portal is launched in hope of getting fundings.
VC and HNI are investing in E-Commerce companies in hope of getting a great exit when these companies get listed.
Why consumers love online selling websites?
- Discounts, yes discounts are the major factor for consumers to shop at these portals. The worst stretagy Indian E-retailers followed was competing based on discount allowed. Today these companies are strugling to achieve positive cashflow from operating activities.
- Ease of shopping is another reason consumer prefer E-Retailer.
- Consumers have more option shopping online. Physical inconveniance and no traffic on roads.
- Few deals are available only online, for example mobile phones are sold only online for sometime after launch.
Why employees love E-commerce startups?
Investors are investing blindly and where does that money go? The investors money is enjoyed by consumers as discount and employees as big salary.
As per various studies conducted, average salary paid in these startups is more than what traditional corporates pay.
E-Commerce sector is in boom, however I expect a correction and it is much required. Amazon is not a new company but still could not achieve a single profitable quarter from its online selling business.
Flipkart is planning for an IPO, but will someone buy stocks of a company which has not faced correction and fund crises.
I will summarise the current position in this below pic
Posted 2 years, 5 months ago by CA Pulkit Sharma
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