Merging Snapdeal and Flipkart is the best way to beat the leading e-commerce brand.

Amazon is topping the list; Investors of Snapdeal and Flipkart are in diffidence!

Due to heavy competition among the e-commerce portals, two big names of the industry; Snapdeal and Flipkart are in discussion with each other for collaboration. This is being said that the two said names of the industry are not able to sell good in front of the world’s leading e-commerce brand Amazon, and in the near future the sales would come to negligible. And to stay in the industry of e-commerce, collaboration is only word that can save the investors and the companies.

Amazon has declared to increase its investment to five billion dollars that is almost equal to thirty four thousand crore (34,000 Crores) in the country, which is much higher than Snapdeal’s and Flipkart’s investment. According to the sources, amazon is all set to invest one lac crore indian rupees to overcome the sales of india’s fastest growing e-commerce portal.

What are the reasons for collaboration?

1.No Investment!

Flipkart and Snapdeal both are out of investment and they are not getting funding from the market any more. Thirty four thousand crore has already been spent on both the companies by investors in the name of funding.

2. Failed Strategies!

The investors didn’t welcome the strategies of lowering market fees and companies commission, for them this strategy was a failure and can’t contribute to their thousands of money which have been invested.

3. Conflicts with Sellers!

Flipkart had a huge conflict with its sellers when the company tried to increase the company registration fees. Also, the strictness in the refund policy has also put the company on battleground with sellers.

4. Alibaba in Indian Market!

The biggest Chinese firm, Alibaba is now all set to enter the Indian Market. With the entry of Alibaba, the competition among the companies will increase more and Indian companies will find it very difficult to stay in the industry.