Flipkart and OLX Partnership

With more and more people accessing the internet through smartphones and tablets, the internet user base has grown to be around 243 million. This has led to exciting and booming e-commerce sector in the country. Last week, Flipkart announced that it had raised fresh capital of $1 Billion; soon afterwards, Amazon too announced that it will invest another $2 Billion in India.

In addition, keeping the momentum going, Internet firms Flipkart and OLX are joining hands for one of a kind marketing partnership. The two sites will launch a joint campaign ‘urging’ consumers to upgrade by selling used products on OLX before buying the new products on Flipkart. OLX was founded in 2006 and is owned by South African Internet Company Naspers, which is an investor in Flipkart. OLX is a marketplace for used goods, while Flipkart sells only new goods. The campaign will be on for a month, and will include several categories within electronics.

With this partnership with OLX, it will be able to provide an end-to-end solution to customers especially in electronics categories where selling old products is an integral part of the buying process. Earlier this year OLX competitor Quickr, had collaborated with Amazon owned Junglee, a price comparison portal. Through this Junglee, users could compare prices of new products across online shopping sites and find locally available pre-owned products listed on Quickr.com.

The first phase of the tie-up will be kicked off with a joint marketing campaign using consumers to upgrade by selling their used products on OLX.in before buying the new products on Flipkart. The Idea of this tie-up was conceived keeping in mind the strong and independent position of OLX and Flipkart in their respective market space. The rationale for the number one online classifieds platform and the leading e-commerce platform coming together for a marketing campaign is a seamless one. With so much funds and collaborations Flipkart is reviving their business model and in no time Flipkart will be India’s largest Online seller and they can beat Amazon in selling products online.