Snapdeal sets up wholesale unit, in shift from true marketplace model

http://www.livemint.com/Companies/jqj1whY4viLAB...

Jasper Infotech Pvt. Ltd, which runs online marketplace Snapdeal, has set up a wholesale unit to buy products upfront, a significant shift from Snapdeal’s current strategy to act as an intermediary, according to three people aware of the development.
E-agility Solutions Pvt. Ltd, the wholly owned subsidiary of Jasper Infotech, will resemble a structure adopted by Flipkart and Amazon where closely associated entities WS Retail and Cloudtail, respectively, play a big role in selling on the e-commerce platforms.
Gurgaon-based Snapdeal is also eyeing Indian partners that could help create a seller on Snapdeal’s platform, said two of the three people on condition of anonymity.
The move will help Snapdeal have better control over its inventory and service levels, but will be a departure from a true marketplace model—something Snapdeal’s founder Kunal Bahl has always been proud of. Since 2011, Bahl has advocated a marketplace model over inventory-led online commerce.