New languages on Flipkart are in addition to the English and Hindi interfaces available for users while Amazon offers interfaces in English and Hindi only as of now.
Walmart-owned Flipkart has now added Tamil, Telugu and Kannada languages on its marketplace as part of its move to strengthen connect with vernacular buyers by customizing their shopping experience in their own language. This is in addition to the English and Hindi interfaces available for users while Amazon offers interfaces in English and Hindi only as of now. Flipkart said that the new interfaces have been built on “Flipkart’s ‘Localization and Translation Platform’” for consumers to buy goods in the local language.
The move is part of e-commerce companies like Flipkart’s plans to cater to the next set of 100 million users from small cities coming online and shopping goods digitally. According to a recent Bain & Company and Flipkart report titled How India Shops Online, buyers from Tier-II and smaller towns contribute close to 50 per cent of all shoppers and three out of every five orders for online marketplaces. These customers purchase similar categories of products as customers from metros or Tier-I cities with only a marginal difference in average selling price (ASP), the report noted. For instance, ASP of mobiles selling in Tier-II and smaller towns is Rs 9,258 – only 8 per cent lower than Rs 10,067 price in metros and Tier-I cities.
India is likely to have around 300-350 million digital shoppers by 2025 up from 100-110 million in 2020, the report added. This will result in close to 30 per cent CAGR of gross merchandise value of the e-retail market from $30 billion in FY20 to $100-120 billion by FY25. Citing industry reports, Flipkart said that Indian language internet users are likely to have a share of close to 75 per cent of India’s internet user base by 2021.
“We truly believe that language, if solved well, can be an opportunity rather than a barrier to reach millions of consumers who have been underserved,” said Kalyan Krishnamurthy, Chief Executive Officer of Flipkart Group in a statement. Also, since Southern India has a “significant proportion of Flipkart’s growing user base coupled with a higher adoption rate of native language script”, regional language e-commerce gained significance for the company.
Meanwhile, Flipkart had last week announced changes in seller fees on its marketplace. For instance, it has more than doubled the fixed fee (charged on every order delivered successfully) from Rs 5 to Rs 12 for orders worth Rs 500 or less than that, the fees for orders worth Rs 1,000 or less than that and more than Rs 1,000 has been increased from Rs 15 to Rs 20 and Rs 30 to Rs 35 respectively. The data around multiple components of seller fees was tweeted by online sellers’ lobby group All India Online Vendor Association (AIOVA) and more shared with Financial Express Online. Similarly, shipping fee, commission charges were also revised.