Buoyed by boom in the segment, country's largest e-commerce market place Snapdeal is expecting $1 billion sales in next the fiscal.
"We have seen a huge growth in the last a few months. Customers are now more confident while making purchases online. By March 2015, we are looking at sales of over $1 billion from our platform," Snapdeal.Com Vice President (Business Development) Tony Navin told The Pioneer. The company expects to close the ongoing fiscal with over $500 million in sales.
When asked about how they make money and set their prices Navin replied: "We tie up with various retailers across the country. They manage prices and lot of margins kept in the offline space because they want to cover their overheads like rental cost but in online you don't have such cost so this is the reason why prices are so low on Snapdeal."
"The margins varies from categories to categories the margins are very small in electronics where as in apparel and in the footwear margins will be significant like 5 to 35 per cent," he added. On raising $150 million in its next round of funding Tony said "There are partners who showed interest but right now there is no clear answer to that.
When asked about their new same day delivery service, he informed that "This service is uniquely launched by Snapdeal and with no additional cost." Snapdeal also announced a partnership with Taiwanese firm Oplus Technology to exclusively sell the product on Thursday. Oplus will sell its tablet -- XonPad7 -- exclusively through Snapdeal for Rs 9,990.