Uttar Pradesh important state for Flipkart, says CEO; encourages state’s handicrafts to sell on marketplace

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Published: July 28, 2019 2:42:57 PM

"We are also encouraging local handicrafts to market their products,” said Kalyan Krishnamurthy on the sidelines of the UP government’s second two-day Ground Breaking Ceremony on Sunday where over 250 industrial projects worth Rs 65,000 crore are being announced.

Flipkart had last month cut commissions charged from sellers to boost their sales and attract more of them.

Walmart-owned e-commerce giant Flipkart’s chief executive officer Kalyan Krishnamurthy said that Uttar Pradesh (UP) is an important state for Flipkart from where many sellers and local MSME manufacturers sell products through Flipkart. The CEO, however, didn’t reveal the number of sellers on its platform coming from India’s most populous state (as per 2011 consensus). Flipkart, which competes with Amazon in India, claims of having over 1 lakh sellers on its platform.

Apart from these sellers, “we are also encouraging local handicrafts to market their products,” said Kalyan Krishnamurthy on the sidelines of the UP government’s second two-day Ground Breaking Ceremony on Sunday where over 250 industrial projects worth Rs 65,000 crore are being announced. Flipkart chief said that the projects announced during the ceremony will “play a key role in propelling UP as an industrial and innovation hub,” and that this will “help in the state’s quest to be India’s first $1 trillion state economy.”

Flipkart has been extensively focusing on attracting more sellers on its platform and make the onboarding process more efficient. The company recently stationed 13 regional teams across India wherein the team members would meet and discuss the process with prospective sellers, who might be selling goods online for the first time, at their premises. “Through Flipkart’s Feet On Street programme, the teams would explain the on-boarding process to sellers in individual locations especially in 13 MSME clusters in India such as Ludhiana for sports goods, Tirupur for textiles etc.,” a Flipkart spokesperson had told Financial Express Online.

Also read: Selling on Flipkart now gets cheaper as e-commerce giant cuts sellers’ commission

Financial Express Online had last month reported that Flipkart had cut commissions charged from sellers to boost their sales and attract more of them. The commission, which Flipkart charges sellers was so far based on products priced below and above Rs 300. With the revised rates effective from June 24, the commission to charged stands at products up to Rs 300, Rs 300-500, Rs 500-1000, and more than Rs 1,000. The commission charged by Flipkart, which has over 1 lakh sellers, ranges between 8-10 per cent depending on the product and in some categories, it is around 12 per cent.

Kalyan Krishnamurthy also stressed on the significance of having more artisans on the Flipkart platform as he highlighted “thousands of artisans, small businesses, and women entrepreneurs” that are selling across India apart from giving market access to artisans and weavers through its fashion arm Myntra as well.

Flipkart is keen on promoting MSMEs and one-district-one-product (ODOP) in Uttar Pradesh, PTI reported quoting its Chief Corporate Affairs Officer Rajneesh Kumar. The ODOP project eyes boosting traditional industries synonymous with their respective districts to spur the local economy and create jobs, he said. Products such as Kala namak rice, wheat-stalk craft, chikankari, zari-zardozi work on clothes, Banarasi silk work are exclusively found in UP only.

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