Global Sun Solutions: Indian e-commerce startup, Flipkart says it will likely switch off its website next year to focus on an app-only format.
Global Sun Solutions: India’s largest e-commerce platform, Flipkart has announced that it will likely shut down its website in a year’s time in order to focus its efforts on development of an app-only business model. The company says as much of 60% of all its traffic comes from buyers and sellers using its mobile app; a dramatic increase on the mere 6% a year ago.
The company’s vice-president, Michael Adnani said that given the rate of transactions was commensurate with the increase of traffic on the company’s app, the shift to an app-only business model made sense.
Steven Aaron, Vice President at Global Sun Solutions which has a neutral rating on Flipkart said, “On the numbers, the decision appears to have merit but it’s a big deal to shut down a website that, only last year, was responsible for the lion’s share of your business generation.”
Flipkart has 40 million registered users and more than 30,000 merchants offering more than 20 million products for sale. The proliferation of cheap smartphones and tablets able to access the internet means that Flipkart is seeing as much as two-thirds of its traffic originating from small cities and towns where many users do not own laptops or desktops or have access to broadband internet connections.
“We think the move could be a little premature but there’s every reason to expect the bias towards mobile to continue in the coming years,” added Aaron.
Global Sun Solutions says it maintains its neutral rating on Flipkart’s stock despite the announcement.
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