IRCTC might join hands with Amazon or Flipkart

You must have heard about on-going battle between Amazon and Flipkart to grab as many users as it can in India. While they both are indulging in the fight, winner is already there and it is none of them. Countrymen had already made IRCTC (Indian Railway Catering and Tourism Corporation) a winner, which got double of total revenue generated by both Amazon and Flipkart together. As per the stats being released, both Flipkart and Amazon were able to touch the $1 billion mark in annual gross merchandise value while on other hand IRCTC alone made $2.5 billion and that too only from its online ticketing service. This clearly shows that the number of active users on the official IRCTC portal is at least double than the on-going top most e-commerce website. This made the authorities of IRCTC to draft a plan which included selling of products directly through their website.

But this draft isn’t fresh either. IRCTC had already tried same tactic last year when they started selling products in collaboration with Yebhi (another e-commerce portal in country) on their official portal. But this draft failed.

IRCTC Might Soon Ping Amazon or Flipkart Products on its Portal

This year scenario had completely changed. With active advertisement campaigns of Amazon, Flipkart, Snapdeal and many other shopping portals, Indian customers have started using these e-commerce portals. But they are all individually fighting for a healthy user base. In this particular case, IRCTC is already having an unmatched user base of over 21 million users.

So they just need a branded makeover and once its done well then it can work in favor of both IRCTC and the partnered e-commerce.

According to a recent report published in ET, Amazon and Flipkart are already in talks with IRCTC for the collaboration and they are all eager to use that insane user base for maximum profit.

If it comes to be true then according to me, only three e-commerce portals which can win the draft are Amazon, Snapdeal and Flipkart while all other e-commerce websites are still struggling to get a brand makeover.

Confirming such rumors, Public Relations Manager at IRCTC, Sandip Dutta said, “Tie-ups with portals like Flipkart, Amazon etc are in the process under which these portals would like to sell their merchandise through IRCTC’s portal, it being one of the largest e-commerce sites in the entire Asia-Pacific region.”

But IRCTC is still way behind other online e-commerce portals. When we calculate the gross revenue generated per user base than ratio IRCTC got is comparatively low. This is mainly because of lack of products on the portal as IRCTC is making all the revenue only through charges on ticketing and through few other IRCTC services.

Earlier when IRCTC started selling goods in collaboration with Yebhi, then they didn’t work upon branding which is the major factor to create trust among users. Personally I didn’t felt eagerness to buy a product from there which we all usually feel these days while accessing any of the top three shopping portals.

Eventually, the formula didn’t work and failed drastically due to poor integration.

This time, challenge is definitely going to be the same. Whether they opt with Amazon or Flipkart or even Snapdeal, the main hurdle there is the integration which should be done professionally while maintaining a branded makeover.

They still need time to achieve that working level of integration with either Amazon or Flipkart or may be with Snapdeal. Till then the only thing we can do is ‘Wait’!

[source – trak.in]

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