eShopbox E-commerce Private limited, an internet retailing partner for fashion brands announced its financial results for second quarter ending 30th Sept’ 2015. The company reported a quarterly revenue growth rate of 43 percent.
“Revenue growth rate is above our expectations as our focus was to improve on our back end operations to meet the increasing sales during the upcoming festival season. We experienced a slowdown during transition of our warehouse operations to a larger and much more equipped fulfillment facility.” said Mr Ankush Karwa, Co founder of eShopbox.
eShopbox, which specializes in helping retailers sell on online marketplaces like Jabong, Myntra, Flipkart, Snapdeal, Limeroad, Paytm and Amazon and others, as well as facilitating sales through comparison shopping sites and search marketing, reported that Myntra and Jabong topped eShopbox’s sales channel during the quarter, as measured by gross merchandise volume.
21 new clients were added, increasing the total client base by 33%
Average revenue per client on a twelve month trailing basis increased by 30 percent.
Strategic consulting fee contributed to 34% of revenue, whereas sales on various channels grew at 27 percent to form 60 percent of revenue in second quarter.
Huge investments were added in the web and analytics technology division.
In response to questions on company’s future plans, Neeraj Choudhary, co-founder at eShopbox who takes care of the business development mentioned that the company is focusing its sales efforts to onboard large fashion brands to garner long term revenue. He mentions that such clients represent higher retention rates and high quality recurring revenue. He didn’t expect a slowdown in revenue growth rate due to such transition.
As per Mr. Nitin Bawankule, the Google Director for ecommerce and Online said that the fashion business in India through the e-commerce portals is expected to see a turnover of $35 billion by 2020. On the same positive note the Forrester, a leading global research and advisory firm has said that the Indian e-commerce markets will grow at the CAGR (compound annual growth rate) of 57%, between 2012- 2016, fastest in the Asia-Pacific region. Indian e-tailing industry is expected to grow to $11.8 billion in 2015. Fashion brands are expected to gain a competitive advantage by association with end to end ecommerce service providers like eShopbox to enter highly dynamic and growing e-commerce market.