The move will help Snapdeal have better control over its inventory and service levels, but will be a departure from a true marketplace model—something Snapdeal’s founder Kunal Bahl has always been proud of. Ltd, which runs online marketplace Snapdeal, has set up a wholesale unit to buy products upfront, a significant shift from Snapdeal’s current strategy to act as an intermediary, according to three people aware of the development. The move will help Snapdeal have better control over its inventory and service levels, but will be a departure from a true marketplace model—something Snapdeal’s founder Kunal Bahl has always been proud of. Until now, Snapdeal had stuck to a true marketplace model connecting sellers with consumers even while Flipkart and Amazon had devised complex structures to create entities that can sell merchandise on their platform. Similarly, Flipkart.com has a trustworthy seller WS Retail Services Pvt.

Source: Mint September 18, 2016 18:33 UTC