Flipkart to shut down eBay; Will introduce a substitution

eBay had sold its India business to Flipkart in 2017 and had made a deal worth $500 million for a five per cent stake in Flipkart.

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On Tuesday, ecommerce giants Flipkart declared shutdown of one of the oldest running e-commerce sites, eBay.in. However, eBay will be replaced by an online platform for refurbished or used products, which will be a direct competition against current leaders in the business – OLX and Quikr.

In a letter to employees, Kalyan Krishnamurthy, CEO Flipkart said,

Based on our learnings at eBay.in, we have built a brand new value platform with refurbished goods, a large market, which is predominantly unorganised. With Flipkart’s customer base and F1 Info Solutions & Services in our group portfolio, I believe we can solve the key barriers to refurbished — trust and convenience — at scale. As part of this launch, we will be stopping all customer transactions on eBay.in on August 14, 2018, and transitioning to the new platform.”

eBay had sold its India business to Flipkart in 2017 and had made a deal of $500 million for a five per cent stake in Flipkart. While taking over the California-headquartered company, Flipkart said that it wished to continue doing business with the company’s international customers. 

However, the new platform by Flipkart is expected to be released by next month but will be open to the public after six months. Currently, it will only be available for Flipkart vendors.

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