Skip to main content

'E-commerce companies may see cash burn up to $400 million in festive sales'


NEW DELHI: E-commerce companies could see a cash burn of up to $400 million during this year's festive sales, compared to about $200-250 million last year, research firm RedSeer Consulting today said.
The cash burn for the e-tailing industry, which has deep-pocketed investors like SoftBank and Alibaba backing players, is forecast to reach up to $370-400 million this year on a expected gross merchandise value (GMV) of $1.5-1.7 billion.
Last year, the cash burn stood at about $200-250 million on a gross GMV of $1.05 billion, it added.
GMV is a term used in online retailing to indicate total sales value of merchandise sold through the marketplace over a certain period of time.
The report said that it is expected that there would be an increase in discounting spends and supply chain expenses as a percentage of GMV when compared to last year.
It added that with the latest funding firepower, market leader Flipkart would most likely increase discounting spends to acquire new customers as well as to gain momentum over rival Amazon (which is also expected to raise its spending).
Also, Paytm, with its recent focus on its Paytm Mall business, is most likely to increase its cashback spends to gain traction during the sale, it said.
"As e-tailers focus on an offering better than ever discounts and also offering a faster than ever delivery experience, including to Tier 2+ cities, this year will see a significant growth in cash burn year-on-year," RedSeer Consulting CEO Anil Kumar said.
Advertising expenses, RedSeer said, will either remain same or decrease compared to the last year's festive sale.
E-commerce players, including Flipkart, Amazon, Paytm and ShopClues are holding festive sales on their platform currently, offering deals and discounts to customers across categories like fashion, electronics and household items.
These offers not only increase sales volume for the players but also help the companies get new customers onboard their platform.

Comments

Popular posts from this blog

Facebook founder Mark Zuckerberg says his company will share 3,000 Russia-linked political adverts with US investigators.

He also pledged to make political advertising more transparent on his network in future.
"We will work with others to create a new standard for transparency for online political ads," he said in a live address on his Facebook profile. He said political advertising will now carry disclaimers about which campaign or organisation paid for it. He added that the company was continuing to investigate instances of foreign actors abusing its advertising platform, including Russia and other "former Soviet states". The move to share details with investigators comes after considerable public pressure for Facebook to be more transparent - and is being interpreted by some as an attempt to fend off any potential regulation from the US government.

Mypatshala Overview and Use

Apple TV 4K to support Dolby Atmos audio in future tvOS update

Apple also doesn't support modern surround sound standards like Dolby Atmos and DTS:X, which place sound effects in 3D space around you," said The Verge's Nilay Patel in his APPLE 4K TV review. "Apple told me that the lack of Atmos isn't a hardware limitation, and that support is on the roadmap," he added.

It is not clear as to when Apple plans to bring this support to its 4K TV streaming box. Apple TV 4K starts at $179 for 32GB variant and $199 for the 64GB variant in the US