How Ecommerce Companies Are Faking Real Estate GMV

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.fake_shark

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.