Home » Internet » Ecommerce » Myntra Too Adopting Marketplace Model From April
Last updated: February 17, 2014 at 17:02 pm

Myntra Too Adopting Marketplace Model From April

Starting April, India’s leading online fashion retailer Myntra will open up Marketplace for third party vendors to start selling their products on Myntra, according to a ET report.

A lot has been happening at Myntra since the start of the year. They recently got funding of $50 million from Premji Invest, but there were also talks of Flipkart making an acquisition offer to them.

They chose to go the funding and growth route rather than getting acquired by the bigger player. Only time will tell whether not merging with Flipkart was the right decision or not, especially with Amazon taking giant strides in India over past 6 months or so.


Currently Flipkart and Amazon both operate on marketplace model. While, Amazon sells all their products from third party vendors, Flipkart came up with marketplace model only in April of last year. Prior to that Flipkart sold it under their own name. Flipkart now has around 1000 retailers on board.

On the other hand, Amazon’s growth has been quite meteoric since they launched in June of last year. According to Industry experts, Amazon is growing much faster than all other e-commerce players in India, that too at much lower costs. This is forced existing players like Myntra and Flipkart to innovate and scale quickly.

For Myntra, getting into marketplace model seemed to be the only logical move, if they had to reach a much larger scale in short duration of time. Myntra expects about 500 vendors to be signed up in the first year. According to Myntra co-founder Ashutosh Lawania, about one-fifth of the total business is expected to come from the marketplace over the next 1 year.

While marketplace model is great for scaling, it does pose problems in other areas like customer service, logistics, merchandize quality etc as lot depends on third party vendors. For Flipkart, it was rather easier to implement the marketplace model as they had their own logistics arm in place. Myntra on the other hand will find it tough because, like Flipkart, they do not have their logistics arm.

Timely delivery of products is one of the key aspects that consumers look at while ordering. Myntra has been quite efficient with it, even without their own logistics. But when it comes to third party vendors, they will need to build strict delivery SLAs to ensure timely product deliveries.

It would be interesting to know your views on Myntra’s marketplace model. What do you think?

1 Comment

Click here to post a comment

Indian Startup Funding Investment Chart List 2016

Check out our Youtube Channel!

Jio Experience Centre at Reliance Corporate Park - A Quick Walktrough

Reliance Jio had arranged their first bloggers event at Reliance Corporate Park in Mumbai, where the…

Top 10 Largest IPO's By Technology Companies Worldwide

Snapchat is planning to come out with their IPO somewhere in March 2017 and is estimated to be value…

Reliance Jio Apple Offer - Free 1 Year Bundled Data & More...

Reliance Jio and Apple have partnered with each other, wherein all Jio customers purchasing a new iP…

The Automation Threat: Is it Real?

World Bank has reconfirmed our fears and apprehensions about the future of jobs and the extent to wh…

who's online

Pin It on Pinterest