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Flipkart - More Troubles for Sellers
#1
Hello,

I am quite surprised as to what Flipkart is upto.

Do they have some other plans ?

That's because they are making it so tough to sell on Flipkart that most of the genuine Sellers would leave themselves.
Only those who would want to sell cheap products with very high margins would be able to survive.


I have just noted the following recent changes which are very objectionable.

1. When ever the SPF is being provided, the Sale value is being left Blank in the Transaction details. This is being done, I suppose, so that Seller would have to put in extra efforts to compare the SPF amount with Sale Price. Earlier they used to pay 100%, then they started paying 75% and now they are even paying below 60%. Over and above they charge you the MP Fee which is quite unethical if the SPF is related to a Fraud.

2. When ever Claim is being provided, the Order number is being changed. Sellers would find it more difficult to reconcile the Accounts.
How can they change the Order ID of the claim ? Not sure who are Flipkart's CAs or Consultants who are messing up everything.



Anyhow with the proposed Fee hike would force most of the genuine Sellers to quit.

I suppose Flipkart has started clearing the path for Amazon.

The only hope for a healthy challenge to Amazon is from Alibaba.

regards
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#2
Flipkart is definitely going down the hill. In rush of acquiring customers they have messed up big time regarding their policies for vendor. This would eventually lead to erosion of their vendor base and ultimately customer base also. They have to balance between burning cash and acquiring customer. Snapdeal and amazon are running away with market place competition and flipkart is missing the trick by running behind quantity and not quality.


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  • KGA
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#3
Sellers who are selling only branded products they have to quit flipkart coz of there polices only private labels can survive now a days.....
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#4
Even private labels cannot survive


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#5
Hello,

I feel Flipkart has some bigger plans .... something is brewing within.

There may be 2 possibilities :-

1. Flipkart may change the business Model altogether.
That's because no sensible eCommerece Player would increase the Commissions to such an extend that it becomes un-viable for most of the Sellers.
This move may be their sweetest & polite way to say ...... "Sellers, please leave"

OR

2. They may be acting like a Politician and Rolling back the Commissions at the 11th hour to show how much they care for their Sellers.

Any of the path they may follow, it would not help them to sustain unless Seller's are taken into confidence.
If you are fighting a Giant (Amazon) then you need a solid foundation (Sellers).
An eCommerce Company who took 8 years to invest in basic Tool (Scanners) for their Pick-up Boys .... am not sure if they would ever believe in a solid "Foundation"


regards
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  • KGA
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#6
(11-06-2016, 02:46 PM)Kush Agarwal Wrote: Even private labels cannot survive


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If brand is not survive ,private lable is not survive then who will do the business ?
(10-06-2016, 03:14 PM)umangmidha Wrote: Hello,

I am quite surprised as to what Flipkart is upto.

Do they have some other plans ?

That's because they are making it so tough to sell on Flipkart that most of the genuine Sellers would leave themselves.
Only those who would want to sell cheap products with very high margins would be able to survive.


I have just noted the following recent changes which are very objectionable.

1. When ever the SPF is being provided, the Sale value is being left Blank in the Transaction details. This is being done, I suppose, so that Seller would have to put in extra efforts to compare the SPF amount with Sale Price. Earlier they used to pay 100%, then they started paying 75% and now they are even paying below 60%. Over and above they charge you the MP Fee which is quite unethical if the SPF is related to a Fraud.

2. When ever Claim is being provided, the Order number is being changed. Sellers would find it more difficult to reconcile the Accounts.
How can they change the Order ID of the claim ? Not sure who are Flipkart's CAs or Consultants who are messing up everything.



Anyhow with the proposed Fee hike would force most of the genuine Sellers to quit.

I suppose Flipkart has started clearing the path for Amazon.

The only hope for a healthy challenge to Amazon is from Alibaba.

regards


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#7
Not sure about survival...

Lets se what happens after 20th
Because as i check in our product range max seller has updated the price.. And price has cam down actually no1 has increase

Means seller is unaware of transaction return..

Whatever account managers are explaining thy are doing it accordingly.. Sellers are just checking net seller payable and not aware of return charges


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#8
Suppose in a particular Category where Flipkart Commission is 15%, the cost to the Seller would be :-

1. Commission = 15%
2. Payment Collection = 2.5%
3. Service Tax @ 15% on (15+2.5 = 17.5%) = 2.63%
4. Shipping Expenses on lower side = 0.5%
5. Other Charges like Returns, Cancellation etc = 0.5%
6. Loss on SPF = 1%
7. Loss on Reconcillation = 1%
8. Overhead including Salaries, consumables, Office setup etc. = 2%

Total works out to be over 25%

Even if you don't consider Loss on SPF & Reconcillation (as it varies from Seller to Seller), still the Total works out to be 23%

I think many Sellers would have to say "Good Bye" post 20th June 2016, if they are aware of this.

With such high margins why would Flipkart want to sell directly to the Customers ?
There are already getting the Retail margins along with thousands of Sellers and their Office Setups for FREE.
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  • KGA
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#9
(13-06-2016, 01:11 AM)umangmidha Wrote: Suppose in a particular Category where Flipkart Commission is 15%, the cost to the Seller would be :-

1. Commission = 15%
2. Payment Collection = 2.5%
3. Service Tax @ 15% on (15+2.5 = 17.5%) = 2.63%
4. Shipping Expenses on lower side = 0.5%
5. Other Charges like Returns, Cancellation etc = 0.5%
6. Loss on SPF = 1%
7. Loss on Reconcillation = 1%
8. Overhead including Salaries, consumables, Office setup etc. = 2%

Total works out to be over 25%

Even if you don't consider Loss on SPF & Reconcillation (as it varies from Seller to Seller), still the Total works out to be 23%

I think many Sellers would have to say "Good Bye" post 20th June 2016,  if they are aware of this.

With such high margins why would Flipkart want to sell directly to the Customers ?
There are already getting the Retail margins along with thousands of Sellers and their Office Setups for FREE.

It's too late for you to understood. All Sellers blindly following same path on every Marketplaces in India very few people making money among the sellers .rest are fighting..
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#10
Hi Fellow Friends,

I recently joined the discussion and planning to stop this monopoly of all E-Commerce portal by launching my own E-Commerce site as we all face so many issues in selling products and to get business via the E-Commerce site. Simply in consideration and learning with all the previous experiences I personally feel a transparent environment needed for all of us. Let's hope for the best together we grow and alone we don't stand anywhere. Coming soon https://humbay.in for you with you.
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