Snapdeal, an e-commerce company came to Indian space at the time when the market was just opening to the internet. It was quite promising as it opened up venues for the local retailers to reach out to far more customers online.
The Snapdeal was supposed to be a technology company with a mature platform to sell products from merchants online. The one major flaw which went against them was the technology with which the platform was built. Though efforts were made to mend this design the APIs were unstable and broke down during usage time.
The PrimaSeller a retailer’s dashboard is an inventory and order management platform for merchants which was used to manage their sales across multiple platforms such as Amazon, Flipkart, and Snapdeal. The Primaseller could not work in accordance with Snapdeal because of the API’s did not support from Snapdeal. The goods could not be sold efficiently so retailers targeted PrimaSeller.
PrimaSeller finally had a fallout with Snapdeal. Though Snapdeal tried to replace their broken system, it did not happen. This resulted in a loss of merchants and customers as well.
Snapdeal went ahead with Unicommerce, a retailer dashboard competitor to Primaseller to provide end to end solution which too failed even though it was acquired.
There are quite a few learnings from Snapdeal start-up. It shows a good startup idea itself is not sufficient to succeed. An equivalent amount of focus is required on the technology, the design, adaptability, resilience of the product in real time. Second would be to have an efficient team of technical people to deal with issues which might arise in this ever changing scene of e commerce industry which did not go in favor of Snapdeal. Third would be transparency with your partners, team, and retailers which were found missing too.
Startups are synonyms to learnings or experiences. Walking out on the merger from Flipkart, Snapdeal is taking this chance to focus on its drawbacks to get its basics right to surge further. With E commerce business in India is looking bright Snapdeal do have a chance to make it good in the due course of time if they can get their act right and move ahead.