I received the following sarcastic write-up on WhatsApp about the eCommerce start-ups that are burning VC money. Thought of sharing. It summarizes the problem precisely!
I’ve got a BIG eCommerce idea that will dwarf Flipkart and Amazon together. I’m going to sell CASH. At a discount of 15%.
Consumers can buy cash at a discount of 15%. Send me Rs.850 and I’ll send back Rs.1000.
The mind boggles at how much cash I could sell. I’ll have no dissatisfied customers. No complaints on social media.
NO DELIVERY OR OTHER LOGISTICS problems. No packaging. No ST, CST, excise, octroi.
No production problems.
No warehousing issues.
You want me to increase the turnover to Rs. 1000 CR? Done. Rs. 10000 CR? Done. You want me to go international? Done, I’ll sell dollars, yen, euros, all at the same discount. As much as you want.
With a GUARANTEED cap on losses at about 16% (15% discount + bank charges).
Bigger, safer and better than any existing eCommerce business.
Any VCs around?