E- Commerce is of 4 types: B2B (business to business), C2B (customer to business), B2C (business to customer), and C2C (customer-to-customer). C2C simplifies the deal of services or products between consumers. The focus of C2C is to help suppliers and consumers. Buyer finds out services or products that are possibly difficult to find and seller profits by selling the services or products. The transactions are usually done by 3rd parties who act as mediators between buyers and sellers. For example, E-bay is an online portal that enables sellers to post online, their goods as well as services which makes it available for customers to buy. Moreover, the mediators charge commission or fee for such transactions. The products sold on such websites can either be old (2nd hand) or new.
Kraftly to Create Channels for Unstructured & Unbranded Markets
According to Kraftly’s co-founder & ceo, Saahil Goel, Kraftly is an e-commerce C2C platform that works as an end point for small businesses selling goods like electronic accessories, watches, sunglasses and jewelry items, etc. In August 2015, under BigFoot Retail Solutions, Kraftly was launched and now considers itself as an aggregator and a tech enabler for small businesses by helping them in the opening of their own business in the online platform. For the unbranded and unstructured market, Kraftly structures exclusively around 5 million and functions as a business platform. The value point is Rs.650-700 for the goods traded on this platform.
Based on the seller’s choice of marketing combination, for each transaction commission is remunerated by the sellers which goes up to 35% and that’s how the company makes revenue. No onboarding fee is imposed in the revenue generation model of Kraftly’s rather just includes Rs.15-35 which is the transactional fee. As of September 2017, the company’s run-rate monthly was nailed at $220,000-250,000 which in turn makes the annual revenue $ 3-3.5 million and by FY18, the company is anticipated to achieve around $ 5 million revenue. For its marketing tools, Kraftly has nearly 15,000 paying partners out of 80,000 & more sellers. Kraftly’s product type guarantees high margins of around 25% on each order and most of the times, the buyer bears the transport fee.
Google and Facebook who are media partners of Kraftly have been approached to create channels for sellers and it’s anticipated that it would be live in 3-6 months. In addition, for bigger sellers, new ad network will be launched by Kraftly on its platform.
BigFoot Retail Solutions – In 2012, cleared $250,000 from 500 Startups and 5 ideas, in 2014, $1.25 million from Beenos and Nirvana Venture Advisors and in 2016, in 2 branches closed a funding of $2 million in March and $6 million in January which in total is $8 million run by Japanese investor, Bertelsmann India Investments and Singapore-based Beenext. In addition, 500 Startups, Nirvana Digital Investment Holding Co and Nirvana Digital India Fund that are existing investors also contributed in the funding.
Drivers and Restraints of C2C e-commerce market
According to an ongoing study by Transparency Market Research, the major factors driving the growth of C2C e-commerce market are the rise in the usage of smartphones and the services provided by the internet globally. Furthermore, lack of retailers, wholesalers and middlemen involved in the transaction has led to decrease in the costs of services and products which helps in the market growth. The inventory costs have reduced and the need of capital investment is removed on outlet stores. Across the world, the increasing popularity and beginning of online payment systems is anticipated to boost the C2C e-commerce market. Also, implementation of these services are barriers to the growth of C2C e-commerce market due to absence of payment guarantees, identity threats and internet frauds. Due to enormous use of smartphones, and high penetration of Internet, North America turns out to be a leading region in the market, globally. Also, due to increase in smartphone and internet users in India and China, Asia Pacific is anticipated to observe rapid growth in the flowing years.
The key competitors in the market of C2C e-commerce are inclusive of Airbnb and Auctions.com, Inc., Amazon.com, Inc., Taobao.com, Quikr India Private Limited, eBay Inc., OLX, Inc., Craigslist, Inc., and uBid.com, among others.
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