How do online fashion shopping giants like Myntra etc earn profits when they sell stuff at such huge discounts?

RA Raimondsvanags asked on 07 July 2020, 18:51
2 answers / 701 views / 0 votes
AK
platforms like Mantra earn profits from sellers by charging 1% from the sellers. Mostly discounts are given by the sellers, not Myntra itself. Mantra earns profit through the ad running on the website. They also charge sometimes from the investors.
TE

Simple ! They dont earn any profit ! Yes. None of the ecommerce company in India has earned a single penny under the term “ Profit “. Yes they have revenues but not profit.

Profit = Total Revenue - Total Cost ( Net profit is amount let after paying all costs, taxes , etc ).

Again neither flipkart, not amazon nor any other company has made any profit.

Future estimates ? For atleast 3–5 years they wont make any profit.

They how will they survive ? By raising capital from investors !

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