Yahoo News 
eBay will end its partnership with Flipkart after Walmart purchase (EBAY)
This story was delivered to Business Insider Intelligence "E-Commerce Briefing" subscribers hours before appearing on Business Insider. To be the first to know, please click here.
eBay is planning to sell its approximately $1.1 billion stake in India-based Flipkart following Walmart's purchase of the company, according to PYMNTS. This will end eBay's strategic relationship with Flipkart, including all of its commercial agreements, and will eliminate Flipkart's licenses to use the eBay.in brand.
BI Intelligence
eBay plans to relaunch eBay India, but will focus on cross-border sales to differentiate itself. Cross-border e-commerce was already part of eBay’s strategy while working with Flipkart, as it helped the company launch “Flipkart Global,” which allowed it to sell in nearly 200 countries by making its marketplace’s products available to consumers through eBay.
eBay has also focused on cross-border sales for its overall strategy, which can be seen through its partnership with MallforAfrica.com, and its efforts in India may help it grab a share of this rapidly growing market.
Focusing on cross-border sales may be a smart move given the fierce competition in the Indian e-commerce market. Flipkart has lost significant ground to Amazon in its home country. Although the Indian e-tailer’s share of unique site visits has only slid 2% since 2014, hitting 36%, Amazon’s share has skyrocketed from 11% to 47%.
Moreover, Amazon claims 46% of all e-commerce mobile searches in India, while Flipkart only has 21%. With the backing of Walmart, it’s likely that Flipkart will ratchet up its efforts, possibly through hefty discounts or promotional activity.
This will be especially important because an increasing number of competitors, like Alibaba-backed Paytm, are becoming prominent in the market, making it difficult to compete domestically.
Having a presence in India is becoming increasingly important for global e-commerce competitors.India’s e-commerce market is anticipated to reach $200 billion by 2026, accounting for 12% of the country’s overall retail market.
As the market surges, it'll become an even larger player on the global stage, making it a critical country to be in for international e-commerce companies. As such, carving a niche in the cross-border segment may help eBay gain popularity in this vital market while minimizing threats from competitors.
See Also:
