ShopClues Commodity procurement platform to operate as a satellite channel

March 5 News, India's network retailer ShopClues announced that it will launch a commodity procurement platform this week and operate as a satellite channel for existing websites. The platform allows customers to make bulk purchases, and businesses can buy back goods on the platform.

The Commodity procurement platform is India's first online commodity procurement business model that allows customers to buy commodities at wholesale prices.

Sanjay Sethi, founder and CEO of ShopClues, said the business was launched because many customers had been buying commodities on shopclues, a new platform that would make the business more active.

It is understood that ShopClues will take the lead in the introduction of 60 businesses into the bulk procurement platform, commodity categories related to electronic products, clothing, health products and household items. The bulk purchase price of electronic products is about 2% to 3% lower than the normal retail prices, while the bulk trading prices of apparel are even lower than the retail price to 50%.

Merchants on ShopClues can define a minimum purchase quantity for this bulk purchase and then sell it to customers at wholesale prices. For goods that have already been sold, they can also be allowed to buy back if the customer wishes to return. In terms of payment, ShopClues also allows businesses to establish a credit mechanism, customers can first pay a portion of the deposit, the remainder of the payment after the receipt of instalments.

A report from Business Standard predicts that ShopClues's 2014-2015 sales will reach $162 million trillion, with net profits expected to reach $25 million trillion, a big boost for the bulk of the market.

Given the increasingly fierce competition in the Indian electricity market, this new bulk procurement model also gives ShopClues a great advantage. Because while other Indian electric dealers, such as Amazon and Snapdeal, offer bulk sourcing services, they are not really developed for the limited amount of bulk purchases.