 "E-tailers should unite to create infra expressway, says Jabong. Will competitors listen?")
New Delhi: October had been a mixed month for etailers. The big billion day debacle of Flipkart put many consumers off and raised questions about the ability of etailers to spruce up their back end, especially logistics.
Praveeen Sinha, founder of one of the largest fashion stores Jabong, says this situation could have been avoided had etailers controlled their greed and figured out before hand actual logistics and delivery capacities of courier/delivery companies.
He has also suggested etailers come together to form a logistics expressway for easing future troubles.
An official from a leading logistics firm told _Firstbiz t_here was no way his company could have handled the sales and Diwali rush because orders surged multiple times and needed to be delivered real time.
“Etailers should only take as many orders as we can supply”.
Though Jabong’s Sinha claims his fulfilment rate stayed over 90 percent even during the festival rush, etailers definitely need to brainstorm on ways to tackle these situations.
Arvind Singhal, Chairman of retail advisory Technopak, says much of the investment coming into e-tail now is actually being put in the back end.
“For the next 5-7 years, etailers will need to attract significant investments and a majority of these will be used I’m building infrastructure. Thereafter the need for capital will reduce”.
However,Vikram Chopra MD of fabfurnish said not all the blame for failed deliveries in recent online sales can be laid at etailers’ door. “The sheer volume of orders during recent sales surpassed our expectations. Otherwise most etailers can handle the volume of increased shipments during festivals and sales”.But he welcomed the idea of etailers joining forces to build infra expressway.
Jabong’s Sinha said it is well funded though it continues to see interest from investors. Jabong raised 100 million dollars in last round of funding in December 2013.Earlier this week Snapdeal raised $627 million dollars from Japan’s Softbank. Amazon has already committed $2 billion to Indian operations.
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
