Business Case Studies & Business Publications

Neons Fashion LLP (A): A Small Seller on...

Mukherjee, Saral, ...

Case

Neons Fashion LLP (A): A Small Seller on Amazon Marketplace

Mukherjee, Saral; Abhishek; Balasubramani, Soundarya

IIMA-MAR0509(A) | Published October 7, 2019 | 21 pages Case

Collection: Indian Institute of Management, Ahmedabad

Add To Cart Buy Now

Product Details

Product Overview
Learning Objectives

Neons Fashion LLP was an entrepreneurial venture of Arthi Ramalingam after completion of her MBA. Arthi had an interest in jewellery since childhood and she decided to focus on design, manufacturing and retailing of fashion and costume jewellery items under the brand name of Eternz through different sales channels like exhibitions, retail stores, own website and as an independent seller on e-commerce marketplaces. She initially started selling on Amazon marketplace through a third party, Cloudtail India Pvt. Ltd., and later sold through other e-commerce marketplace operators like Flipkart, Jabong and FirstCry. As her business grew, Arthi planned to add the kids' shoes category and also decided to participate in Bangalore Fashion Week to build the Eternz brand. However, in November 2016, Cloudtail terminated her contract which played havoc with the sales and profitability of her start-up. Neons Fashion LLP (A) provides details of how independent sellers are at the mercy of marketplace operators and ends with the need to review the choices of sales channels for different categories like fashion garments and fashion accessories, and for the upcoming launch of kids' shoes. Neons Fashion LLP (B) describes the events after the Bangalore Fashion Week that ultimately led to closure of business.

Understanding challenges of e-commerce marketplace operations from independent seller perspective. The role of product returns in deciding the sales channels for different product categories. Conflict of Interests inherent in e-commerce marketplace operations.