Indiatimes Shopping, part of Times Internet Ltd (TIL), has been selling products online for more than 12 years now. After using the marketplace model propounded by Ebay all along, this division of TIL is now shifting towards the e-tailing model. And why not? The success of shopping portals such as Flipkart, HomeShop18, Myntra and Bestylish have proved how e-tailing allows a company to have complete control over customer experience, something that?s just not possible in case of portals that follow the old marketplace model. In an interview with Rohit Nautiyal of FE, Gautam Sinha, chief technology officer, TIL, talks about the reasons behind this strategic shift, the role of technology in making this happen and how this is expected to improve the brand image of Indiatimes. Edited excerpts.

What made Indiatimes Shopping switch to the e-tailing model?

There was a strategic shift at Indiatimes Shopping around 18 months back. All along, we had been mainly following the marketplace model based on demand aggregation and a pool of suppliers to meet the demand. Basically, we never took stock of inventory. So our website was just a platform where products could be listed. This turned out to be a de-merit. For instance, when an order was placed, the customer would interact with the supplier only. Following this model can also lead to complete erosion of one?s brand equity. So if the customer has a bad experience, it was Indiatimes Shopping that would be blamed.

Now, we are focusing towards taking direct control over customer experience. The e-tailing model allows us to do so as we are involved right from the time an order is placed till the product is delivered. Our website has been tweaked to reflect this change.

Today, anybody with money and having done some market research can start an e-commerce company. In such a situation, can ensuring a good consumer experience work as a strong differentiator?

While I cannot comment on other players, e-commerce is undoubtedly one of the biggest opportunities in India with more than 250 companies investing in various projects. The marketplace model cannot be sustained in a country like ours, where logistics and payment systems are not as mature as those in American and European markets. Smaller suppliers want to make money from each transaction and many a time end up short-changing the customers. We have faced this situation in the past and that is why we believe that customer experience is basic hygiene for any e-commerce company.

Which are some of the hot selling categories for Indiatimes Shopping?

The CCME (camera, computers, mobiles and electronics) category is the most important. This is followed by gifting and books. We have invested in technology upgradation at both the front-end and the back-end. As of today, we have an end-to-end integrated system which allows a holistic view of an order right from the time an order is placed to the time the product is delivered to the customer.

What are the initiatives that have been taken up by TIL to make the user interface of Indiatimes Shopping more customer-friendly?

Over the last year, technology has been an important investment area for Indiatimes Shopping.

It has enabled us to shift and scale from a marketplace model to an e-tailer model, where we maintain inventory and take end-to-end ownership of customer experience. The front-end experience has been standardised with Ajax and HTML5 technologies. We have also launched rich mobile apps on the IOS and Android platforms. The traffic at Indiatimes Shopping has grown from 6.5 lakh unique visitors in March 2011 to approximately 30 lakh unique visitors as of June 2012. Revenue has also grown in excess of 100%.