Ecommerce Fraud
There is fraud of unbelievable magnitude happening in some reputed e-commerce companies that needs investigation. Here is some info:
1) Company (with funding and wanting to raise more) signs up a trusted supplier (say phone/tablet supplier)
2) Supplier orders expensive gadgets through fake accounts as a customer
3) He is both the supplier & customer (transaction happening thru e-commerce site)
4) Once he supplies, he gets a small payment from ecommerce company for discounting
5) Ecommerce company gets additional revenue (in some case high magnitude and no. of transactions)
6) Ecommerce company please investors by showing this added revenue and raises much more money at much higher valuations
Please get Enforcement Directorate and others to investigate this asap. I am also reporting this in corruption circle. If this keeps going and gets figured out much later it will cause irrepairable damage to start up india and entrepreneurs of the country. more
1) Company (with funding and wanting to raise more) signs up a trusted supplier (say phone/tablet supplier)
2) Supplier orders expensive gadgets through fake accounts as a customer
3) He is both the supplier & customer (transaction happening thru e-commerce site)
4) Once he supplies, he gets a small payment from ecommerce company for discounting
5) Ecommerce company gets additional revenue (in some case high magnitude and no. of transactions)
6) Ecommerce company please investors by showing this added revenue and raises much more money at much higher valuations
Please get Enforcement Directorate and others to investigate this asap. I am also reporting this in corruption circle. If this keeps going and gets figured out much later it will cause irrepairable damage to start up india and entrepreneurs of the country. more
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The points raised are totally true, E COMMERCEGOODS supplied are truly not upto the mark. Thrice i am personally been victimised by FLIPCART,my question is which AGENCY is monitoring the process of business. i.e. 100.00 INR PRODUCT: 70% DISCOUNT, 10% DELIVERY CHARGE, 10% TO COURIER /DELIVERY CO. 10& EARNING TO E-COMMERCE CO. THEN WHAT IS THE PRODUCT COST. more
Mar 12
eCommerce companies are interested to create valuation perception instead of creating value. If we observe their business models,most of the money spent is on acquiring customers by way of discounts and high profile media coverage/advertisements.This inflates their GMV with no respect to bottom line. Any business model which does not respect value of money is bound to doom.This universal truth is known to early stage investors and hence they try their best to exit at best possible valuations.The last in the chain will get lesson of his life.Sort of sophisticated and institutionalized ponzy scheme . more
Mar 07
The way ecommerce companies gain is improving the GMV (Gross Merchandise Value) and bring it to the top line irrespective of losses. There is no profit but sales volume and turnover goes up. more
Mar 07
