After selling the controlling stake to Walmart, Flipkart also announced that it would shut down the operations of eBay India on August 14 and chose to launch a new platform to sell refurbished goods.
Flipkart had bought eBay India services last year. With funding of $1.4 billion in 2017 saw associates such as Microsoft, Tencent, and eBay where it invested about $500 million in Flipkart and got another $220 million worth of shares from trading its India business to Flipkart.
However, eBay ended its strategic partnership with Flipkart in May, also made $1.1 billion by selling its stakes in Flipkart, and along with that, it said it plans to relaunch eBay India focusing not on domestic sales as it had done previously, but on cross-border sales: selling into India from abroad, and from India to other markets.
eBay doesn’t give too many details about how it will proceed with these plans, but as part of it, eBay confirmed that it would be ending its strategic deal with Flipkart, which had involved a license for Flipkart to utilize eBay.in and for the two companies to cross-promote products within the two platforms.
In a more positive light, there is still a lot to play for, and by offering a differentiated opportunity focusing on cross-border sales, eBay could utilize a gap in the market that Walmart will not have the desire to pursue. eBay doesn’t state this, but in a real world, it’s going into its plans with its eyes open, and based on purchasing patterns it’s been seeing in and out of the country in recent years.