In the race for GMV, some of the ecommerce companies are going an extra mile to drive numbers. Here is how it is working:
Step 1 : Buyer and property dealer spend weeks/months on the deal. Finally they decide to sign the deal. Everything is done offline.
Step 2 : Ecommerce company steps in, gets the property dealer/builder to sign up for their marketplace.
The property data is uploaded.
Step 3 : The ecommerce company lures the buyer to buy the same property from the website (i.e. transfer the booking amount).
Step 4 : The buyer sees no point/value in transacting online. The GMV hungry ecommerce company transfers ~20% of the signing/booking amount (either cash or vouchers) to the buyer.
The deal is done. Similar arrangement is made with the property dealer.
The buyer is happy because they get a ‘cashback’. The property dealer/builder is happy because they too get a good deal. Some of them are promised free advertising space as well.
Both of them actually do nothing on the ecommerce platform. But a GMV is recorded.
The ecommerce company is happy because they get to show BIG GMV numbers – that too for doing nothing (and in most cases, there is NO platform).
Yeah, the company does lose some money in the entire transaction – but hey! It’s all about growth!!
Welcome to #FakeEstate business.