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Amazon opens its largest fulfilment centre in Hyderabad with an aim to increase delivery speed

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E-commerce giant Amazon on 7 September announced the opening its largest fulfilment centre in the country in Hyderabad.

Located at the Rajiv Gandhi International Airport, the centre covers over 400,000 sq ft with close to 2.10 million cubic ft. It is the fifth fulfilment center in Telangana and the largest in the country.

With this, Amazon has a storage capacity up to 3.3 million cubic feet in Telangana, vice president, India Customer Fulfilment, Amazon India, Akhil Saxena said, without revealing the investment figure into the centre.

“We have been consistently investing in our infrastructure and delivery network, so we can increase our speed of delivery and provide a superior experience to both, customers and sellers,” Saxena told a press conference.

“With the launch of our largest fulfilment centre in Hyderabad in Telangana, we strongly believe that we will be able to better serve our customers with one-day and two-day delivery.

The FC (fulfilment centre) will enable sellers to use local infrastructure, save capital and help them grow their businesses,” Saxena said.

With more than 10,000 sellers in Telangana, the selection offered by sellers in the state for immediate delivery has grown more than 120 percent this year as against last year, he said.

To a query, he said Amazon Pantry bulk packs of monthly and weekly grocery and household essentials is being currently test piloted in Hyderabad.

Amazon currently has 41 fulfilment centres in 13 states with a storage capacity of 13 million sq ft, he said.

Source : FirstPost

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Paytm Mall to splurge Rs 1,000 cr, mostly to offer discounts this festival season, say reports

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Paytm Mall : The competition in the online shopping space in India is likely to heat up this festival season with one more player planning to splurge in order to woo customers.

According to media reports, Alibaba-backed Paytm Mall is planning to spend about Rs 1,000 crore this festive season, giving a tight competition to domestic e-commerce stalwarts Amazon and Flipkart.

According to a report in The Times of India, the amount earmarked will be utilised for marketing, cashbacks and promotions. It says, however, most of it will be spent on discounts.

Another report in The Economic Times notes that the amount to be spent is three-fold over last year’s expense of about Rs 300 crore by Amazon India, Flipkart and Snapdeal . This year, although New Delhi-based troubled etailer Snapdeal is not in the fray, Paytm Mall will more than compensate for it. It is to be remembered that this will be the first festival season of Paytm Mall, which was spun off into a separate app in April this year.

According to the report, the company is planning to add about 5,000 branded stores to its platform ahead of festival season sales.

“This festive season, while online retailers will focus on spending money and taking away business from shops in the neighborhood, we will work with them and bring special offers for consumers to shop from their nearby markets by enabling these shopkeepers with mobile technology,” Amit Sinha, COO, Paytm Mall, has been quoted as saying in the report.

The company owned by Paytm Ecommerce recently refreshed its app featuring 1,000 brand stores and 15,000 brand- authorised retailers selling over 65 million products.

Its aim is to clock a gross merchandise value (GMV) run rate of $4 billion by the end of March next year on the back of strong growth in transactions on its platform.

The e-commerce firm expects strong demand in categories like electronics, appliances, FMCG and fashion to drive its growth.

The brands the company is looking at include Apple, Samsung, HP, Lenovo, JBL, Philips, Puma, Allen Solly, Lee, Pepe, Levi’s, Fossil and Vero Moda, among others, to drive growth.

However, analysts quoted in the ET report feel Paytm Mall may find it difficult to make a mark in fashion and retail even as consumer electronics and appliances may not be a major issue.

With all the players drawing up strategies to attract consumers, buyers can definitely expect a great festival season ahead with mouth-watering discounts.

Source : FirstPost

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Wal-mart to join hands with Google to enter the voice-shopping platform

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Wal-Mart Stores Inc is teaming up with Alphabet Inc’s Google to enter the nascent voice-shopping market, currently dominated by Amazon.com Inc, adding another front to Wal-Mart’s battle with the online megastore.

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Google, which makes the Android software used to run most of the world’s smartphones, will offer hundreds of thousands of Walmart items on its voice-controlled Google Assistant platform from late September, Walmart’s head of e-commerce, Marc Lore, wrote in a blog post on 23 August.

Lore, who joined the world’s largest retailer after it bought his e-commerce company Jet.com, said Wal-Mart would offer a wider selection than any retailer on the platform.

Amazon, whose voice-controlled aide Alexa allows users to shop from the retailer, has the lion’s share of the US voice-controlled device industry, with its Echo devices accounting for 72.2 percent of the market in 2016, far ahead of the Google Home gadget’s 22 percent, according to research firm eMarketer.

Amazon has also dominated Wal-Mart and other brick-and-mortar retailers in online sales.

Wal-Mart has begun pushing back aggressively, however, offering discounts to customers who buy online and pick up in-store, and free two-day shipping for purchases of $35 or more. The latter move even forced Amazon, which rarely imitates the competition, to lower its threshold for free shipping.

Lore said in the blog post that Wal-Mart was also integrating its quick reordering tool into Google’s same-day delivery service and voice-shopping.

“One of the primary-use cases for voice shopping will be the ability to build a basket of previously purchased everyday essentials,” he said in an interview.

He added that Wal-Mart has bigger plans for voice shopping next year that will involve capitalising on its 4,700 US stores to “create customer experiences that don’t currently exist within voice shopping anywhere else.”

Customers might be able to use voice shopping to pick up a discounted order in-store or buy fresh groceries across the country, he said.

But while both Amazon and Google’s voice-controlled speakers are gaining in popularity, people still mainly use them for such basic tasks as placing phone calls or playing music.

To boost voice purchases, Amazon has started offering Alexa-only shopping deals.

“We’re still in early days, but shopping isn’t yet one of the big uses of the devices,” Victoria Petrock, principal analyst at research firm eMarketer, said on Tuesday.

“Obstacles to people using the devices to shop are cost and privacy. A little more than six in 10 people are concerned that these virtual assistants are spying on them.”

Source : FirstPost

 

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For bill payments and transaction on e-commerce platforms BSNL launches mobile wallet app

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BSNL launches mobile wallet app for bill payments and transaction on e-commerce platforms

State-run Bharat Sanchar Nigam Limited (BSNL) on Thursday launched a mobile wallet that would enable its existing 100 million customers to make bill payments and transact on e-commerce platforms.

The wallet has been developed and issued by MobiKwik on behalf of BSNL.

“With this co-branded wallet, the ease of payment will be extended to all the customers while equally strengthening financial inclusion in the rural hinterlands, which often get neglected. Going digital is the need of an hour for both urban and rural areas, and this partnership is definitely a step in right direction,” said Communications Minister Manoj Sinha.

The wallet app enables fast online recharges, bill payments, shopping and bus booking, e-commerce platforms payments among many other activities.

“Through this strategic partnership between BSNL and MobiKwik, we are taking another important milestone in achieving PM Modi’s vision of enabling and making India a less-cash society based on his grand vision of digital India. We at BSNL are proud to be part of this programme and will ensure that all our 100 million BSNL customers will be able to seamlessly and conveniently transact and pay mobile and other financial payments through the co-branded MobiKwik wallet,” said Anupam Srivastava, Chairman cum Managing Director, BSNL.

“BSNL wallet will enable masses in paying bills, recharging their phone connections and paying for their daily purchases, within seconds,” said Bipin Preet Singh, founder and CEO, MobiKwik.

Source : FirstPost

 

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Amazon claims to have doubled its customer base in Tier II and III towns, at this year’s Great Indian Sale

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Amazon claims to have doubled its customer base in Tier II and III towns, at this year’s Great Indian Sale

In a report by the Economic Times, Amazon India is said to have added Amazon Prime customers in an exclusive deal which offers customers Prime membership at an introductory price of Rs 499 annually as against Rs 999. This membership includes unlimited video streaming, free delivery on eligible items which are mostly on the same day in select cities. Other offers include deals.

The sale which took place from 9 to 12 August, also gave users an option of using Amazon Pay wallet. According to the e-commerce company, their native wallet saw 20 times jump in the number of customers. Fashion, smartphones and appliances were some of the sectors which grew ‘multiple’ times.

As quoted by ET, Manish Tiwary, vice president, category management, Amazon India, said, “Customers especially enjoyed big deals from big brands across smartphones, TVs and appliances and fashion, with old-product exchange and No-Cost EMI being particular hits.”

Other findings by the US based e-commerce company, during the Great Indian Sale included an increase in purchases through its no cost EMI scheme.

The sale had offered a selection of over 100 million products across various categories. Smartphones had discounts up to forty percent.

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Source : FirstPost

Notice served for selling wildlife products online to Snapdeal, IndiaMart, Wish and Buy, Craft Comparison

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The Madhya Pradesh Tiger Strike Force has served notice to e-commerce firms Snapdeal, IndiaMart, Wish and Buy, and Craft Comparison for allegedly selling wildlife products on their portals.

Issued notices were served to the e-commerce companies last week after their names surfaced during an investigation of seizure of wildlife products related items in Indore, a state public relations department official has said.

“MP Tiger Strike Force has served notices to Snapdeal, IndiaMart, Wish and Buy and Craft Comparison for selling wildlife related items on their websites. The companies were told to remove all such content and to submit a clarification as to why an action should not be initiated against them,” the official said.

She said the force had confiscated items hattha-jodi and siyar-singhi (used in black magic) made out of wild animals limbs from the premises of a company called, Shubh Bhakti in Indores Vijay Nagar in June this year. The company owners, Sumit Sharma and Firoz Ali, were arrested and a case was registered against them under the Wild Life Protection Act.

“During interrogation, the accused told that they were into trading of puja (worship) materials and are also into sale of wildlife related items,” she said. They also told police that superstitious people believe that possession of hattha-jodi will make them win court cases, help them become rich, child birth, business growth, and saw it as solution to every problem. The duo said that they sold these products like hattha-jodi in a large quantity to people at a high price.

During interrogation, the accused confessed that they sold these wild life related itemsthrough portals, Snapdeal, IndiaMart, Wish and Buy, and Craft Comparison.

Initially, the accused defended themselves by claiming that the items are not related to wildlife, and are made up of roots of plants. However, a forensic examination confirmed that the products were wildlife items, the official said.

Source : FirstPost

SoftBank’s $2.5 bn Flipkart deal makes Indian e-tail hot again, it’s no longer a cakewalk for Amazon

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SoftBank’s $2.5 bn Flipkart deal makes Indian e-tail hot again, it’s no longer a cakewalk for Amazon

Finally, home-grown e-commerce company Flipkart deal can stand up to Jeff Bezos’s Amazon and not allow it a free-run in India. With its latest round of funding, the company says it has excess cash of $4 billion in the kitty as against Bezos’s $5 billion.

SoftBank Vision Fund, the world’s largest technology-focused investment fund, on Thursday made an “undisclosed” investment in Flipkart. The transaction, claimed to be biggest-ever private investment in an Indian technology company, will make the fund one of the largest shareholders in the e-commerce leader in India. However, according to media reports, the investment amounts to $2.5 billion.

The investment is part of the previously announced financing round, where Flipkart deal had raised capital from three of the world’s premier technology companies – Tencent, eBay and Microsoft.

Until Thursday (yesterday), it was believed, and rightly so, that Amazon has an advantage over Flipkart deal in that it has deep pockets unlike the latter which has to get investors’ approval to scale up.

Though Flipkart’s market share has grown to 57 percent in March 2017 from 45 percent in June 2016 thus maintaining a lead over the other top players in the sector, it was then felt that it was only a matter of time before Amazon outperforms and claims the leading position, said Devangshu Dutta, chief executive of Third Eyesight, a consulting firm. However, it won’t be a walk-over for Amazon now.

Amazon India recently said it invested an additional Rs 1,680 crore in India as part of its commitment to invest $5 billion. The global major has said it will continue to invest in expanding infrastructure and bringing in solutions to enhance consumer and seller experience in the country.

India has close to 500 million Internet users. As per market research, the Indian e-commerce market is expected to grow at a five-year CAGR in excess of 30 percent.

What money can buy for Flipkart
With the funds in place, Flipkart will need to still get the structure in place, upgrade their technology, cost structure and customer acquisition.

“I suspect that with the funds at hand and the fund crunch hurdle now crossed, Flipkart will be able to infuse some fresh talent. They do not need to focus on unit economics now,” said Paula Mariwala, Partner, Seedfund, and Co-Founder, Stanford Angels.

Though Amazon has been investing hugely in the Indian e-commerce space, Flipkart has been able to answer it fittingly at every step, Mariwala said. “Flipkart is solid on paper for sure and now they can do planned thinking with Paytm through Alibaba. Unlike Alibaba which has protection from the Chinese government, Flipkart with its kitty full can now compete on a level playing field with Amazon,” Mariwala said.

Amazon will have to re-chart the India blueprint in the e-commerce market as now it is no longer the only player with deep pockets. “With the leading two e-commerce players flush with money, it is a good time all around with advertising spend going up, logistics getting a boost and customers getting discounts,” said Arvind Singhal, Chairman and Managing Director, Technopak Advisors, a Delhi-based management consultancy firm.

The e-commerce market in India has changed with discounting being no longer the name of the game. The focus is on margin realisations and customers are willing to pay for services like delivery charges as they see value in it. But with Flipkart now in a happy space with excess cash, it will be back to mega discountrs during festival time, believe anaysts.

If the name of the game is to offer discounts, then Mariwala hopes that Flipkart will ensure that people will continue to buy more as customer acquisition through discounts hasn’t worked for it and cannot be the name of the game in e-commerce. “With money at their disposal they can do planned thinking and improve the game,” she said.

Thriving e-commerce space
What SoftBank fund’s investment in Flipkart basically means is that the potential of the Indian e-commece space is now beginning to be understood and no one is giving anyone an open uncontested field. In that sense, say analysts, India is one of the very few markets left in the e-commerce world where Amazon was threatening to stay ahead by investing heavily here.

Sachin Bansal and Binny Bansal acknowledged the promise of India’s e-commerce market in their statement released to the press on Thursday. “This is a monumental deal for Flipkart and India. Very few economies globally attract such overwhelming interest from top-tier investors. It is recognition of India’s unparalleled potential to become a leader in technology and e-commerce on a massive scale,” the duo said.

But the latest round of funding changes the game that now poses a challenge for Amazon.

The e-commerce space is also populated with start-ups and not just vendors and manufacturers. Vision Fund’s latest financial boost to Flipkart will have many ripples with more jobs being created, with logistics and last mile delivery business being given a boost.

There will be additions to talent at Flipkart. A lot of its top talent had resigned. After Kalyan Krishnamurthy took over as CEO, at least three top executives had resigned — Saikiran Krishnamurthy, head of Ekart; Surojit Chatterjee, senior vice-president of product management; and Samardeep Subandh, chief marketing officer, according to a report in the Business Standard.

The management structure was getting confusing at Flipkart, says Harish HV, Partner, India Leadership Team, Grant Thornton India LLP, with people leaving. “Yet, Flipkart responded to challenges from Amazon in the marketplace. Now with funds at their disposal, they will be able to get the right people and up the game,” he said.

He believes that this funding has changed the game making it very tough for a third player to match Amazon and Flipkart.

Before this fresh round of funding from the SoftBank fund, many thought the e-commerce space would be dominated by Amazon with Alibaba giving it a tough competition. But the rules of the game have changed. “However, it would be wrong to believe that the Indian e-commerce arena will be dominated by Amazon and Flipkart. Alibaba is in the game with Paytm and in 12-18 months time, there are reports that Reliance Industries is expected to enter this market” says Singhal.

Clearly, Indian e-commerce is hotting up again. And it is indeed good news for customers.

Source : FirstPost

GRAB THE BEST FROM AMAZON GREAT INDIAN SALE 2017

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Did you miss the previous Amazon Great Indian Sale?? Don’t worry, it’s time again to experience the amazing sale with an innumerable number of offers, discounts, and deals. Yes, the Amazon Great Indian Sale 2017 is back, again with a bang. The sale will run from January 20-22, 2017. Take a look at numerous discounts available on various products across different categories. So, brace yourself for the 72 hours Deal Marathon, which brings lighting offers in every 30 minutes.

Get ready for best deals during Amazon Great Indian Sale 2017 !

The Amazon Great Indian Sale will offer exciting deals on daily essentials, home, and kitchen, consumer electronics, books and music, fashion and much more. Apart from the generous discounts, Amazon is offering 15 percent additional cashback on app purchases exclusively for the State Bank of India customers. Hold on…..the web users can have something good too! Get pampered with 10 percent cash back when purchased with State Bank of India debit and credit cards while shopping on the website. Take an advantage of going cashless as Amazon Pay would be offering up to 15% cashback when the payment is made through Amazon Pay Balance. All the Amazon Prime members can grab the best deals first; with 30 minutes early access.

Deals to explore #BadiBachatOnAmazon

1)Deal of the Day brings you fresh deals every day to make your day memorable.
2)Lightning Deals are sparkling offers on baby products, beauty, fashion, furniture, health & personal care and much more.
3)Saving and sales are offering huge discounts on some of the best products like 16 percent off on Moto G4 (16GB), 55 percent off on the Micromax Canvas Nitro 2, pantaloons instant voucher and so on.
4)Get exclusive Amazon Great Indian Sale 2017 coupons on baby products, beauty, car & motorbike accessories, grocery, health & personal care, household supplies and personal care.
5)Prime Early Access Deals offers products at a better discount.

ShopClues to enter the unboxed and refurbished electronics category with focus on tier-III and IV towns

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Online marketplace ShopClues is entering the unboxed and refurbished electronic gadgets category and targets doubling its gross merchandise value with a customer count of 9 million by the end of this fiscal.

The company aims to organise the mostly unstructured category of used and unboxed electronics, it said. “With a focus on the re-new gadgets category, ShopClues is structuring the massive opportunity around unboxed and refurbished electronics. Extensive primary research has informed us that there is a huge need gap when it comes to consumers buying unboxed and refurbished gadgets, especially with awareness, availability, and quality assurance,” Radhika Aggarwal, co-founder and chief business officer, ShopClues.com said here.

It is targeting to grow its gross merchandise value (GMV) by two-times, with a customer base of 9 million, she added. ShopClues currently services 30,000 PIN codes and is targeting a GMV of about Rs 20,000 crore by the end of this fiscal. The e-commerce company will be among the first marketplaces to enter this category.

“Our product teams have also solved the fundamental problem of trust and quality through a specific surety badge? Surety Re-New, which signifies that the product has gone through 5 levels of quality checks, something that no local seller can replicate,” she added.

The company plans to focus on tier-III and IV towns like Bankura, Tiruvallur, Krishna, and Godavari, in the South. The company has tied up with top selling brands like Nokia, Samsung, OnePlus, and Motorola, Xiaomi, and Asus. It aims to move beyond the consumer-to-consumer nature in this market and add value to products in this category.

Going forward, the company plans to grow this category to include TVs, watches, and more, it said. ShopClues has over 20 million listed products, with five lakh merchants and 7,000 online brand stores. The company received Series E funding from sovereign wealth fund GIC. Its other investors include Tiger Global, Helion Venture Partners and Nexus Venture Partners.

Source : FirstPost

Snapdeal’s Kunal Bahl, Rohit Bansal tell staff ‘new path’ already profitable at gross level

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Snapdeal’s Kunal Bahl, Rohit Bansal tell staff ‘new path’ already profitable at gross level

Snapdeal’s sellout talks with Flipkart was called off with the co-founders of the former committing to an independent path and a ‘Snapdeal 2.0’ version.

Firstpost has received the mail Kunal Bahl and Rohit Bansal wrote to Snapdeal employees through sources. In the letter, they have said that with the ongoing streamlining of costs and sale of some of the assets, such as Freecharge, “we are financially self sufficient as a company and don’t need to raise additional capital to reach profitability’.

The company recently sold the mobile payment solutions company, Freecharge, which it bought in 2015 for about Rs 2,500 crore for Rs 385 crore to Axis Bank.

“…The opportunity of e-commerce in India is immense, and the surface of this $200 Billion market has barely been scratched yet,” the c-founders said in the letter, putting up a brave face even as media reported that it may cut 80 percent of its staff.

Here is the full text of the letter:

Dear Team,

Over the last few months, our company has been engaged in strategic discussions with other players. A lot of time and effort has gone into the process from all participants in this exhausting process. The process has led to intense speculations and uncertainty for our team, partners and shareholders. And now it is time to finally put an end to this saga.

We will be continuing the Snapdeal journey as an independent company. As we have often discussed, the opportunity of e-commerce in India is immense, and the surface of this $200 Billion market has barely been scratched yet. We have a tremendous team, millions of loyal customers, hundreds of thousands of motivated sellers and a phenomenal platform that has been built with years of effort. All the ingredients of success have always been there in our company. And after the last few months of tumultuousness, it is time to focus on the business and leverage all our strengths to progress towards our vision of building the best marketplace to connect buyers to sellers in India.

The good question to ask is why are we moving down an independent path, when so much effort went into determining a strategic combination. There are a few reasons for this, which go beyond the fact that the deal being contemplated was incredibly complex to execute as reported extensively by the media. Firstly, there isn’t going to be one successful model for e-commerce in India. In every market, there are multiple successful e-commerce businesses, and as long as one’s strategy is differentiated and has a clear path to success, there is a great company that can be built. We firmly believe in our new direction – Snapdeal 2.0 – part of which is a laser focus on being a champion for all sellers in India, enabling anyone to setup a store online in a few minutes and focusing on providing large selection of products at great prices to consumers. Secondly, we have made tremendous progress towards this new path over the last few months and are already profitable at an gross profit (a.k.a. net margin) level, with clear visibility to making upwards of INR 150 Crores in gross profit in the next 12 months. Finally, with the ongoing streamlining of costs and sale of some of our assets, such as Freecharge, we are financially self sufficient as a company and don’t need to raise additional capital to reach profitability. Needless to say, we will need to keep a tight control on our costs and work towards becoming a hyper efficient culture delivering profitable growth, month on month.

Many of our team members have spoken with me over the last few weeks, reiterating their interest in the fact that Snapdeal should continue in its independent capacity. The passion our team has for our purpose, and the signs of progress being very visible are key reasons why our team continues to be inspired to pursue an independent path. So, the decision is made. There is zero ambiguity. We will be running the company as we have been and rapidly moving ahead with our mission.

Success is never final, failure is rarely fatal; it is the courage to continue that counts. Let’s work together to make Snapdeal 2.0 a super success!

Thanks!

Kunal & Rohit

Source : FirstPost

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