Third party Ecommerce website Snapdeal has confirmed in an official statement that it has decided to reduce its employee base in the hope of revival. An official internal email was sent to the staff which, according to the economic times states that the founders Kunal Bansal and Rohit Bansal have pledged not to take a salary for an unspecified time.
The official statement read “We started growing the business before the right economic model and market fit was figured out. A large amount of capital with ambition can be a potent mix that drives a company to defocus from its core. We feel that happened to us. We started doing too many things, and all of us starting with myself and Rohit, are to blame for it.”
Yepme fire 80%-90% of their employees
According to track.in’s unconfirmed reports, E-commerce portal Yepme is likely to fire close to 80% – 90% of their employees mainly due to the increasing losses.
Yepme has close to 200 employees working in various departments. It is believed that the firing process has already begun from the non-core departments like maintenance, admin, etc.
Flipkart is reducing the office space
India’s largest E-commerce player flipkart is looking to reduce the office space. The CEO of Embassy Office Park, Mike Holland said “We are discussing with Flipkart on overall space reduction” as a part of its cost cutting process to handle the trying times.
What went wrong?
Snapdeal is likely to lay off over 600 people. This is an attempt to look forward to employ “a lean mode”. However, this pushes one to ask a follow up question; shouldn’t technology companies be ‘light” to begin with?
India is a huge diversified market with the number of online buyers growing every day. For such a huge market, giving away discount is not the only strategy.
Customers do not always look for the cheap deals. They look for the fair deals. A peek into the market research will reveal this important information. When the local manufactures and traders are forced into reducing their profits, they will eventually walk through the exit doors, leaving a fewer partners.
What next for the small and medium business owners
The E-commerce giants like Flipkart, Snapdeal, etc. look at the numbers. But numbers of sales do not add on to the profits. The running costs, annual maintenance, etc. should be accounted.
The small businesses should have investments set aside for doing technology research. When the discount is the only sales pitch, the investment for doing research takes a toll.
It is always advisable for the small and the Medium Scale industries to have an e-commerce application of their own. Unlike the popular misconception, the e-commerce portals are not an expensive investment.
Secondly, the technology service company like BenErg will offer you dedicated resources to update and maintain your application, round the clock.
Below are a few E-commerce applications which we have developed for small and medium scale companies.[See image gallery at www.benergdigimark.com]
E-commerce should make doing business easy and comfortable at the end of the day with the motto of “Unboxing profits”.
For similar E-commerce applications you can contact our technical team at – [email protected]