Thoughts on ecommerce scaling from a VC, Flipkart to allow advertising ala Amazon, Amazon to add advertising into mobile search results, Souq raises $75M, a United eBay, Birchbox to open physical store, The death of flash sales and much more
Revenue generation for ecommerce businesses is currently a hot topic as business models are being re-looked as venture capital is flowing into ecommerce. Amazon and Flipkart announces new channels to make revenue from merchants (advertisements inside mobile search results and adding advertising from merchants on the website of the marketplace) in the same week cant be seen as a coincidence. Why is there this current topic making its way thorough the industry? Clearly this is a topic that needs a long post but to summarise, I believe that investors are looking at strategies to protect themselves against market forces such as the impending Alibaba IPO, global economic changes and most importantly more efficient usage of capital.
Clearly Amazon is a force that will not be ever redone but lessons from them are slowly being seen in the ecommerce market. Are we in a bubble? Marc Andreessen, Fred Wilson and other VC’s are not willing to say “yes we are” or “no we are not”. Simple question is ridiculous valuations of ecommerce businesses such as Zalando, Fab.com and others not a sign that the market is in a critical phase?
Suchurita Mulpuru from Forrester wrote a great post on the need for a United eBay (one that contains PayPal) and I must say I agree. eBay has gone thorough one of the most interesting business re-organisations seen in the Internet space but the ecommerce industry needs a company that can compete against Amazon in the US market. PayPal outside the US in developing markets like Russia and Brazil ensure that customers can purchase products cross border. John Donahoe and his management needs to be commended for getting Skype off the books of eBay. This is a developing story and one which I think will be getting quite a bit of coverage in the month of April.