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Alibaba plans direct entry to India. Do Flipkart and Amazon need to worry ?

Good news for consumers especially for those who are ordering from Alibaba (China) and wait for their products to arrive after 45 days . Many of Indian online consumers order directly from Alibaba as the cost advantage is huge (almost as low as 20% - 30% of the price you get it from Flipkart and Amazon) .  They get their products from Aliexpress (Alibaba logistics arm) after 45 days.
" We buy electronics items quite frequently from Alibaba and the prices are very low compare to Indian online retailers", said a frequent buyer from India.

Many traders get their product directly from Alibaba after paying import duty and still it is quite cheap. They sell these products on Indian marketplace like Flipkart and Amazon. 

If you see the math, it is quite simple . Flipkart and Amazon charge approximately 20% commission from the sellers. Sellers add his markup price on top of delivery charges , transaction charges plus market place commission, import duty from China, seller from Alibaba also get charged substantial commissions.  

In this entire ecommerce game , many middle men are involve and Rs 100 worth of good finally get sold at Rs. 700-800. 

With Alibaba entering into Indian Market, we assume this gap is going to shrink and consumers will save some money .

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