E – commerce is booming in India. Brands like Flipkart, Snapdeal, Myntra, and Amazon have revolutionized the online shopping experience for customers. There is a constant battle between brands to emerge as market leaders by offering the best products and top-notch services. Ecommerce businesses are springing up quite frequently in the country due to the enormous opportunities and scope for growth.
Indian customers are known to try products and services, especially those sold online. This is why businesses are shifting to sell on Flipkart and other online marketplaces, focusing their efforts on growing their reach and becoming market leaders.
Flipkart’s Success
Flipkart has managed to stand out from the competition as a market leader, with statistics indicating that it is the most lucrative online shopping platform in India today. The Morgan Stanley report on ‘E-commerce in India for 2016’ placed Flipkart as the number one e-commerce company in India, with a dominant market share of 45%. According to the report, Flipkart’s market share of 45% is equivalent to the combined market share of the following three players (Snapdeal, Amazon, and Paytm).
The Indian market has immense potential to become a highly lucrative e-commerce market. India is the second-largest internet market globally in terms of users, with three internet users being added every second (statistically speaking). Dedicated mobile apps have made it even more convenient for customers to shop online.
Interestingly, Flipkart is now the first Indian app across all genres, including- communication, social, and entertainment, to cross the 50 million install benchmark. The company announced on 18th February 2016 that it’s Android app had crossed the 50 million installs milestone in the first week of February. Considering that the company launched the app in September 2013, the app has achieved this seemingly impossible feat in under 30 months.
Based on the current statistics and the future potential of Flipkart, it would be a wise decision to sell your products on this fantastic marketplace. Not only will you benefit from a vast consumer population comprising people from different age groups, but you will also get ample exposure and enhanced sales opportunities.
How to Sell on Flipkart
Selling on Flipkart is beneficial and easy, but you must know how to become a seller on Flipkart first and then understand how to sell a product. Now that you have the first step towards growing your business with Flipkart, you can reach out to more than 4.5 crore registered customers. Flipkart makes 80 lakh shipments every month to over 1000 cities. So you will get a significant boost that will push your business to the next level.
Doing business on Flipkart is easy. It may seem like a daunting task to become a seller on Flipkart, but it involves just five basic steps. Ensure you have the required documents and check the policies to ensure everything is in place. Everything else will work out perfectly for you.
Step 1: Register Your Business
Registration is the first step to getting your product on Flipkart. Flipkart allows individuals and businesses to register by providing the required product and business information. You need to visit the Flipkart Seller Homepage to initiate the registration process.
Basic Details Required for Flipkart Vendor Registration
The fundamental details required at the time of Flipkart seller registration include;
- Name of the Applicant/Business
- Email Address
- Create Password
- Phone Number
- Enter GSTIN
- Business Address (This will serve as the pick-up address)
- Product Categories through which the business will sell on Flipkart
- Business Registration Documents
- Personal Documents (in case of Sole Proprietorship)
- Tax Registration Documents
Business Registration Requirements for Sole Proprietorship
Sole Proprietorship refers to an individual trying to sell on Flipkart using their name and legal standing. This particular arrangement has its issues. Limited liability protection is not available to the promoter. There is limited capacity to obtain bank loans and a lack of scalability for the venture. Partners and investors may not show a lot of interest in the business. Lastly, it cannot be transferred easily. If you wish to proceed with this business registration, prepare the following documents.
Identity Proof
- Pan Card
- Passport
- Voters ID
- Driving License
- Any other valid photo ID
- Letter from a recognized public servant or public authority verifying the identity
- Statement of bank accounting registered on the payment gateway of Flipkart.
- Signed declaration on the business letterhead stating that the individual owns and manages the bank account held in the business’s name is needed.
Address Proof
- Telephone Bill of fixed-line registered in the name of the proprietorship firm.
- Electricity bill of the proprietorship firm.
- Ration card
- Letter from employer
- Bank account statement with the address of the proprietorship firm mentioned in the statements.
- Lease or license agreement.
- Letter from a recognized public servant or public authority verifying the identity.
Business Registration Requirements for Private Limited Company
Registering as a private limited company is preferable for selling on Flipkart. It overcomes all the issues that are associated with sole proprietorship registration. In addition to the basic details, you must provide the following to register the private limited company with Flipkart.
Identify Proof
- Company Pan Card
- Copy of MOA (Memorandum of Association)
- Copy of Certificate of Incorporation of the company
Address Proof
- Telephone bill of the fixed-line available at the company
- Electricity bill of the company
- Lease or rental agreement
Business Registration Requirements for LLP/Partnership Firm
A Flipkart seller can be a partnership firm. Ensure the firm is registered as an LLP while signing on as a seller on Flipkart. This arrangement’s benefits are similar to those applicable for private limited companies. The following documents need to be furnished in addition to the basic details mentioned in the registration form for Flipkart.
Identity Proof
- Partnership Registration / LLP Incorporation Certificate.
- Partnership Deed
- Power of Attorney is granted to a partner or employee to represent the business and manage its transactions with Flipkart.
- Any document identifying partners and the person holding a power of attorney is required. Photographs of all the concerned persons will be required as well.
- Pan Card of the Partnership Firm / LLP.
Address Proof
- Lease or Rental Agreement
- Company Electricity Bill
- Firm / Partner’s Electricity Bill
- Firm / Partner’s Telephone Bill (Fixed Line)
- Any valid official document confirming the address of the partners to the firm and the person(s) holding a power of attorney for the partnership firm is required.
Business Registration Requirements for Trusts and Foundations
It may not be common knowledge, but Trusts and Foundations can become sellers on Flipkart if they provide their identity, address, and other relevant details. They would be required to furnish the following details and basic information.
Identity Proof
- Registration Certificate for the Trust / Foundation.
- Any document identifying the Trustees / Board of Trustees and the person holding the power of attorney document. Photographs of all the concerned persons will be required as well.
- Pan Card of the Trust / Foundation.
Address Proof
- Lease or Rental Agreement.
- Electricity Bill of the Trust/Foundation.
- Telephone Bill (Fixed Line) of the Trust/Foundation.
- Any valid official document confirming the address of the Trustees/Members of the Board of Trustees and the person(s) holding a power of attorney for the Trust / Foundation.
Tax Registration Requirements for Selling on Flipkart
This is one of the most crucial details required for registering with Flipkart. Once the seller has registered the business in any of the arrangements mentioned above, they will have to furnish the banking details and documents for tax registration. The following information will be required from the business entity.
- Business Name
- Pan Card (Individual/LLP/Private Limited Company/Trust & Foundation)
- TIN Number of the Business (also known as VAT number/Sales Tax Number/CST Number).
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- This is not mandatory for books and unstitched dress materials.
- Without a TIN, a seller can register on Flipkart, but they will be eligible to sell only books and unstitched materials. This arrangement isn’t very beneficial unless you are an author or someone who wishes to deal only with books or unstitched materials.
- TAN Number in the name of the business (required for TDS, Tax Deduction at Source)
- Bank Account Name
- Bank Account Number
- Bank IFSC Code
Step 2: List Your Products on Flipkart
Once you have completed the Flipkart registration process and the seller profile have been set up, you can list your products and start selling. There is no compulsion to initiate multiple listings. You can list one product and then increase the listings when required. As a Flipkart seller, you will be the one who gets to decide the price of the products.
Since the listing of products on Flipkart is free, you can take advantage of the cost benefits and place appropriate price tags on your product to achieve a competitive advantage and make a decent profit after deducting the applicable sales commission.
Flipkart has a self-serve tool that makes uploading products on the platform easy. You can also connect with industry experts (through Flipkart) and put together an attractive catalog. Catalog partners develop high-quality photographs of your product and produce crisp product descriptions that drive sales.
If you have the budget, you can even connect with phot-shoot partners to give your products the winning edge they deserve. It is vital to provide accurate and complete product information so the customer can make an informed decision.
Before you begin listing the products, make sure that you select the correct category for the product. Incorrect category selection has been known to lower the sales prospects, and your product might not even get noticed despite the presence of a targeted consumer base for the platform.
Step 3: Sell Across India with Flipkart
Now that you have registered your seller account on Flipkart, the most extensive online marketplace in India, you are ready to reach out to customers across the country. To make things easier, Flipkart has developed an easy-to-use and straightforward dashboard from which you can monitor and manage your sales. Promotions and advertisements are also available, should you be interested in availing of these services.
With the help of Analytics support, you can track and monitor all the information related to your product’s sales and engagement on Flipkart. You can even find out the age, sex, income group, location, and buying habits of the consumers buying your product. Thanks to such detailed information, you can make informed decisions about your product to boost sales and increase profits without losing out on lucrative opportunities.
Step 4: Hassle-Free Shipping
The best thing about selling on Flipkart is that you don’t have to worry about logistics. Flipkart offers dedicated pick-up and delivery services where you only have to pack the products in Flipkart Packaging and hand the package to the courier executive. All you need to do is keep the package ready for dispatch and let the logistics partner handle the delivery. Flipkart is known for its effortless order fulfillment through 120+ pick-up hubs and 10,000+ delivery personnel.
You will be notified via an email alert from Flipkart whenever a customer places an order for your product. After this, you need to get the product packed and ready for dispatch within the time frame decided at your convenience. Once done, you will have to inform the officials through the seller portal, which will send an alert to the logistics partner to pick up the package.
If the logistics partner does not service your area, save your pin-code details at the registration time and click on “Continue” to proceed further. The logistics partner will notify you when the pin-code / area becomes serviceable.
The important thing here is to ensure that the packaging standards match those followed by all Flipkart sellers. For this, you will need the best Flipkart packaging materials.
DCGpac is India’s leading provider of Flipkart packaging material and shipping supplies. It offers superior packaging materials that not only protect the contents of the package but also allow impressive presentation for the package.
Step 5: Product Pricing and Payment
The product pricing has to be decided by you. You are free to place any price tag on the product without any interference from Flipkart. Plus, there are absolutely no charges for product listing. However, you must pay a sales commission to Flipkart after the product has been delivered successfully.
After the product is delivered, the following deductions are made from the order value item.
- Selling Commission
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- This is a pre-decided percentage of the amount paid by the customer for the product. The percentage differs across categories and sub-categories and is decided based on your product.)
- Fixed Closing Fee
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- No closing fee for products with an item price less than Rs 250
- Closing fee of Rs 5 for products for a price ranging from Rs 250 to Rs 500
- Closing fee of Rs 10 for products above Rs 500
- Shipping fee
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- It is calculated based on the product weight and shipping location.
- Service tax
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- Applicable on all of the above components.
Based on the above explanations, the following is an example of the calculation of a fictitious transaction. This will help you to understand the calculations associated with product sales.
Buy corrugated boxes online for e-commerce packaging.
Flipkart mandates using its logistics partner’s services to ensure ease of selling and the best possible customer experience. The shipping cost is deducted from the selling price before the amount is transferred to you. The shipping fee is calculated on actual or volumetric weight, whichever is higher. This is done to compensate for items that do not have a lot of weight but occupy a lot of space. Due to this, the quantity of packages sent by the carrier is reduced.
Flipkart levies the following rates for the shipping fee. All the rates are exclusive of all taxes.
All payments are made through NEFT transactions (online banking). The payment is made directly to your bank account within 5-7 business days of dispatching an order. Flipkart has a reputation for making the fastest payments in the industry. The standard time specified by Flipkart is based on general assumptions. The actual payment period is based on several factors, such as how long you have been selling on Flipkart, customer ratings, and the number of orders fulfilled.
Returns and Seller Protection on Flipkart
Returns and exchanges are part and parcel of online shopping. You cannot expect the customer to be satisfied only with the images shown on the portal. There may be occasional issues leading to damages inflicted on the product due to which the package may be returned. In such cases, the seller needs to be assured of some protection.
Flipkart has set up a Seller Protection Fund (SPF) to protect sellers against fraud. Such attempts have been known to cause immense financial distress to the brand and the seller. The seller can request SPF through the dashboard. Due compensation will be awarded if the buyer or logistics partner is responsible for the mishap.
If the customer has returned damaged products, you can claim compensation through SPF if you provide proof that an authentic and undamaged product was shipped to the customer. The refund will be based on the case and the product category.
The exact process is applicable if the customer returns the package after replacing the original product with a different item. Due to the possibility of such fraudulent attempts, you need to be extra careful while sending products to the customer so that you have substantial proof to show that the right product was shipped in perfect condition.
If the goods are lost or damaged during transit, you are eligible for a refund per the SPF scheme. However, the refund will depend on the situation and the product. You can raise a claim from your dashboard. This is entirely at the members’ discretion overseeing the SPF claims and refund process.
Start Selling on Flipkart
Vigilance is a virtue in the e-commerce domain. You need to be aware of everything around you to monitor the competition, disrupt fraudulent attempts and boost your business’s prospects significantly. Now that you know everything required to be a seller on Flipkart, you need an excellent product, strong determination, and all the documents necessary to start selling on Flipkart.
