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Vishu Bheda

AI did the magic • 1y

Why Flipkart Struggles to Turn a Profit: Unpacking the E-commerce Giant's Challenges - Intense Competition: Competing with Amazon, Snapdeal, and other local players drives up marketing and operational costs. - High Discounts & Offers: To attract and retain customers, Flipkart often provides significant discounts, impacting profit margins. - Logistics & Infrastructure Costs: Managing a vast delivery network across India incurs substantial expenses. - Technological Investments: Constantly upgrading its platform and technology to improve user experience requires hefty investments. - Regulatory Challenges: Adhering to evolving e-commerce regulations in India can be costly and complex. - Cash Burn: Aggressive growth strategies and customer acquisition efforts lead to high cash burn rates. - Inventory Management: Balancing stock levels to meet demand without excessive overstocking is financially demanding.

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