Why all eCommerce ventures are not successful?

I have heard people saying that they bought something from eBay.in, flipkart.com, infibeam.com, snapdeal.com, amazon.in or jabong.com. But, I have not yet come across anybody talking about buying or selling something on OLX or QUIKR.

The only place where I have seen their names is in advertisements, which try to tell me that I can sell my junk through them. Somehow, I am not convinced that selling my assorted used items (which even the Kabadiwala refuses to look at) will be as easy as it is made out to be and people will be waiting to lap up my useless stuff.

I think there are many people like me who are not convinced.

This reminds me of a mother who grooms her young daughter and takes her to all parties and social functions to get her noticed by mothers of prospective grooms. The only objective is to get her daughter married to some boy from a prosperous family.

The rise of some eCommerce ventures and their phenomenal valuations coupled with the easy availability of VC or PE funding has given rise to some silly and greedy start-up mindsets, whose only motive is to create a company which gets picked up or taken over by some bigger giant. They are not interested in developing a business. They are just interested in creating a hype, making a lot of noise and waiting for some idiot to come and buy their junk at ridiculous prices.

And they think that even if they sell junk, there will be hordes of PEs and VCs with loads of money eager to buy their company.

They don’t realize that if they could not convince a customer to come and buy/sell their stuff on their platform, only idiots will come and invest into such junk traders who themselves are soon going to be junk.

They must remember that in every Tech boom, everybody and their cousins want to ride that wave. Today, everybody wants to be an Amazon or a Flipkart. But most of them result into a mother desperate to showcase her daughter.

They should realize that it is not easy to “Bech De” their company so Quikrrrrr….

Making noise on advertisements (on easy VC/PE money) is easy. Making sense is not so easy.

Author: Sanjay Shah

Sanjay is the author of "Business Management Simplified" which provides Practical, Actionable Solutions for Entrepreneurs. It is an all-in-one guidebook to start, run and grow a small and mid-size business to the next level. He is also an SME Business Coach, Seminar Leader and Motivational/Keynote speaker, Sanjay is based in Mumbai (India). He advises many businesses on Strategy, Leadership, Marketing, Branding, Customer Experience Management and Organization Development. He conducts various self-help seminars and workshops for companies and groups in English, Hindi and Gujarati. For more info, visit : www.SanjayShahSeminar.com

1 thought on “Why all eCommerce ventures are not successful?”

  1. Good post sir! Only name (brand) these companies are selling which may making sene to startup manufacturer for making Quikr twiker mobile ltd or olx utensils pvt ltd 🙂 they will hv benifit via Just to grab end user attention by brand name . Agreed that name is equally important in business with quality in product to cretae new startup may be JV happened in past like hero honda , sony erricsion etc are the inspiration for these companies….

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