Snapdeal Introduces ‘LaunchPad’; Aims To Triple Seller Base By This Year!
Snapdeal has launched a unique initiative called ‘LaunchPad’ for entrepreneurs, innovators and small businesses across India. Using this platform, product creators and entrepreneurs can directly list their products on Snapdeal and utilize 2.5 crore+ users who visit this portal every month. [via]
Based on the direct distribution model of Walmart, wherein any innovator can contact Walmart and ask them to showcase their products nation-wide inside their stores, Launchpad is a direct distribution model wherein third-party entities such as distributors, agencies and retailers would be boycotted.
Snapdeal will provide assistance with regards to marketing, distribution, shipping and payment.
Any product creator who has designed and developed a product in any category such as household items, electronics, gadgets, tools etc can use this new initiative by Snapdeal and sell their products directly to the consumers.
Interestingly, Snapdeal will not claim any equity shares from the entrepreneur/innovator. All products would be listed for free on Snapdeal platform. It seems there would be a percentage as commission for any sale happening within Snapdeal, but this has not been confirmed yet.
Kunal Bahl, cofounder of Snapdeal said, “It (Launchpad) has been on our mind for some time now. Unlike in the West, where if you have a good product, you can approach a Wal-Mart and get nation-wide distribution, that option isn’t available in India. We are hoping to change that,”
He added, “All the products will probably not work, but the bigger idea is to provide a catalyst. We are going to try and get consumer credibility”
To check the compatibility and feasibility of the listed products, Snapdeal has partnered with IIM Ahmedabad’s technology incubator – Centre for Innovation, Incubation and Entrepreneurship and IIT Bombay’s Entrepreneurship Cell which will screen the products before being listed on their platform.
As of now, Snapdeal has around 30,000 sellers on its platform from 200+ cities, maximum for any Indian eCommerce marketplace. With this new initiative, they plan to increase this count to 1,00,000 sellers from 500 cities by the end of 2014.
Snapdeal normally receives around 1000 enquires from SMEs and Small Businesses, out of which 15-20% gets converted. Apparels and Electronics are the most popular niches within Snapdeal as of now, as shared by Kunal.
Snapdeal is always creating new paradigms for Indian eCommerce industry. Last year they had launched this flat 10% affiliate commission model, which became an instant hit with Internet Marketers in India.
Earlier this year, they had introduced same day delivery in Delhi, a trend which was quickly adapted by different ecommerce players. Talks are on start their own payment gateway and listing in US stock exchange.
Will their new initiative “LaunchPad’ attract new Indian innovators and entrepreneurs to their platform? Do let us know by commenting right here!