1. E-commerce: Flipkart, Snapdeal, Amazon, others dole out incentives to sellers

E-commerce: Flipkart, Snapdeal, Amazon, others dole out incentives to sellers

Online marketplaces such as Flipkart, Snapdeal, Amazon etc have started looking beyond traditional customer acquisition model...

By: | Bangalore | Published: August 20, 2015 8:00 PM
Ecommerce

Flipkart, Snapdeal, Shopclues and others introduced financing program for sellers to help them with capital as they scale their business online.

Online marketplaces such as Flipkart, Snapdeal, Amazon etc have started looking beyond traditional customer acquisition model and have devised schemes like self-financing programs for sellers or assisting them with resources at various stages to sell on their platform.

Flipkart, which has more than 30,000 sellers on its platform, said, “With the aim to create ultimate ecosystem for sellers, we have launched ‘Flipkart One Stop’ popularly known as F1-Stop, on Thursday.”

The ‘One Stop’ center, currently available in 10 cities will offer services such as registration, training, cataloguing products, packaging and financial assistance. The company has also partnered with other service agencies like Sellerworx, 99yrs.com, BluBox, Chikiweb, Browntape etc., that will work with the sellers and train them.

In the past one year, online marketplaces have started focusing on creating a seller eco-system on their platform. In an interview to FE, Snapdeal’s Chief Product Officer, Anand Chandrasekaran had said, “It is now that the whole industry is waking up to the fact that sellers are important. Today we have about 150,000 sellers on board and my view is it’s just 15% of our overall goal.” It aims to rope in a million sellers in the next two-three years.

Last month, a relatively new entrant in the marketplace vertical, Paytm had said it will invest Rs.640 crore to enable one lakh merchants to sell online. It even launched a “Go Big” platform—gobig.paytm.com for merchants to avail services such as content writing, cataloguing, online marketing and imaging. It claims to have 600 such service providers to assist offline retailers in various aspects of online retail.

Earlier this year, Flipkart, Snapdeal, Shopclues and others introduced financing program for sellers to help them with capital as they scale their business online. While, Amazon has tie-ups with State Bank of India and Flipkart has partnership with five financial institutions, Snapdeal has been running its “Marketplace Financing Program” since a year. Flipkart will help its sellers get loans ranging from Rs.1,00,000 to Rs.2 crore.

Flipkart plans to take “One Stop” initiative to 20 cities by the end of this year. Currently it’s present in Mumbai, Delhi, Bangalore, Surat, Jaipur etc. “Flipkart One Stop is an extension of our efforts to create a seamless seller ecosystem in India. Aimed at offering best-in-class environment for every seller, this new initiative will help them streamline and simplify the processes to get their businesses up and running online within a short span of time,” said Ankit Nagori, Chief Business Officer, Flipkart.

Similar to Flipkart’s initiative, Snapdeal is also in partnership with National Institute of Electronics and Information Technology (NIELIT) to train sellers on e-commerce under the Digital India Initiative.

  1. P
    Prem Ji
    Aug 21, 2015 at 2:25 pm
    Flipkart is selling product at cheaper cost through foreign funding and should not be allowed to do business until they create level playing field. Price should be same on online as well on offline. I will suggest vendors to walk out Flipkart and shift to other player like Buyonkart and Shopclue
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