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How To Sell Your Product On Flipkart

Step by Step Guide to Become a Flipkart Seller and Sell Products on Flipkart

Sell Your Product On Flipkart 

E-commerce is definitely booming in India. Brands like Flipkart, Snapdeal, Jabong and Amazon have revolutionized the online shopping experience for the customers. There is a constant battle between brands to come out as a market leader 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 the ones that are sold online. This is why businesses are shifting to sell on Flipkart and other online market places and focusing their efforts on growing their reach as well as becoming a market leader.

Flipkart’s Success

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 next three players (Snapdeal, Amazon and Paytm).

Flipkart’s market share

Image Source: Economic Times

India is the second largest internet market globally in terms of users with 3 internet users being added every second (statistically speaking). The Indian market has immense potential to come up as a highly lucrative market for ecommerce. Plus, the availability of dedicated mobile apps has made it even more convenient for the customers to shop online.

Interestingly, Flipkart is now the first Indian app across all genres including- communication, social, entertainment, to cross the 50 million install benchmark. The company announced on 18th February, 2016, that its 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 amazing marketplace. Not only will you get the benefit of a huge consumer population comprising people from different age groups, but you will also get ample exposure and enhanced sales opportunities. 

How to Sell on Flipkart

How to Sell on Flipkart

Selling on Flipkart is definitely beneficial and easy, but you have to know how to become a seller on Flipkart first and then understand how to sell a product on Flipkart. Now that you have the first step towards growing your business with Flipkart, you will be able to reach out more than 4.5 crore registered customers. Flipkart makes 80 lakh shipments every month to over 1000 cities. So you will obviously get a major boost that will push your business to the next level.

Doing business on Flipkart is really easy. Just make sure you have the required documents and check the policies to ensure everything is in place. Everything else will work out perfectly for you. It may seem like a daunting task to become a seller on Flipkart, but it involves just 5 basic steps.

Step #1: Register Your Business

Register Your Business

Registration is the first step to getting your product on Flipkart. You need to visit the Flipkart Seller Homepage to initiate the registration process. Flipkart allows individuals as well as businesses to register by providing the required product as well as business information. 

Basic Details Required for Flipkart Vendor Registration

The basic details required at the time of Flipkart seller registration include;

  • Name of the Applicant / Business
  • Email Address
  • Phone Number
  • Business Address (This will serve as the pickup 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 by using his or her name and legal standing. This particular arrangement has its own issues. Limited liability protection is not available to the promoter. There is limited capacity to obtain bank loans in addition to 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, then keep the following documents ready.

  • 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 name of the business.
  • 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 the most preferable method for selling on Flipkart. It overcomes all the issues that are associated with sole proprietorship registration. In addition to the basic details, you would have to 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

It is possible for a Flipkart seller to be a partnership firm. Just make sure that the firm is registered as a LLP wile signing on as a seller on Flipkart. The benefits of this arrangement are similar to the one applicable for private limited companies. The following documents need to be furnished in addition to the basic details as mentioned in the registration form for Flipkart. 

  • Identity Proof
    • Partnership Registration / LLP Incorporation Certificate
    • Partnership Deed
    • Power of Attorney as granted to a partner or an employee to represent the business and manage its transactions with Flipkart.
    • Any document identifying partners and the person holding the power of attorney document. 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 the power of attorney for the partnership firm.

Business Registration Requirements for Trusts and Foundations

It may not be common knowledge, but Trusts and Foundations can also become sellers on Flipkart as long as they can provide the identity, address and other relevant details. Basically, they would be required to furnish the following details in addition to the 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 the 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, then he or she will have to furnish the banking details and documents for tax registration. The following details 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).
    • This is not mandatory for books and un-stitched dress materials.
    • Without a TIN number, a seller can register on Flipkart but he or she 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 in 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 IFSE Code

Step #2: List Your Products on Flipkart

List Your Products on Flipkart

Once you have successfully completed the Flipkart registration process and the seller profile has been set up, you can list your products and start selling. There is absolutely no compulsion to initiate multiple listings. In fact, you can just list one product and then increase the listings as and when required. As a Flipkart seller, you will be the one who gets to decide the price of the products. Since listing of products on Flipkart is absolutely free, you can take advantage of the cost benefits and place appropriate price tags on your product such that you achieve a competitive advantage and make a decent profit after deducting the applicable sales commission.

Flipkart has a self-serve tool which makes uploading products on the platform really easy. You can also connect with industry experts (through Flipkart) and put together an attractive catalogue. Catalogue 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 that they deserve. It is important to provide accurate and complete information for the products so that the customer can make an informed decision.

Before you begin listing the products, make sure that you select the right 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 such a large targeted consumer base for the platform. 

Step #3: Sell Across India with Flipkart

Sell Across India with Flipkart

Now that you have registered your seller account on Flipkart, the biggest online marketplace in India, you are ready for reaching out to customers across the country. To make things easier, Flipkart has come up with an easy-to-use and simple dashboard from where you can monitor and manage your sales. Promotions and advertisements are also available, should you be interested in availing these services.

With the help of the Analytics support, you can track and monitor all the information related to your product’s sale and engagement on Flipkart. You can even find out the age group, sex, income group, location and buying habits of the consumers who are buying your product. Thanks to the availability of 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

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 over the package to the courier executive. All you need to do is to keep the package ready for dispatch and let the delivery be handled by the logistics partner. Flipkart is known for its effortless order fulfilment 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 that has been decided as per your convenience. Once done, you will have to inform the officials through the seller portal and this will send an alert to the logistics partner to pick up the package.

In case your area is not serviced by the logistics partner, save the details of your pin-code at the time of registration and click on “continue” to proceed further. When the pin-code / area becomes serviceable by the logistics partner, you will be notified about it. 

The important thing here is to ensure that the packaging standards match the ones followed by all Flipkart sellers. For this, you will need the best Flipkart packaging materials. DCGPAC is the leading provider of Flipkart packaging material and shipping supplies in India. 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

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 do have to pay a sales commission to Flipkart after the product has been delivered successfully.

After the product is delivered, the following deductions are made to from the order value item.

  • Selling Commission
    • 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 on the basis of your product.)
  • Fixed Closing Fee
    • No closing fee for products with item price less than Rs 250
    • Closing fee of Rs 5 for products for price ranging from Rs 250 to Rs 500
    • Closing fee of Rs 10 for products above Rs 500
  • Shipping fee
    • Calculated on the basis of the product weight and shipping location.
  • Service tax
    • Applicable on all of the above components.

Pricing Structure

Source: Flipkart Seller Portal

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.

Pricing Structure1

Source: Flipkart Seller Portal

Flipkart mandates the use of its logistics partner’s services in order 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. Shipping fee is calculated on actual weight or volumetric weight, whichever is higher. This is done in order to compensate for items that do not have a lot of weight but occupy a lot of space due to which 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. 

Non Heavy Shipments

Source: Flipkart Seller Portal

Heavy Shipment

Source: Flipkart Seller Portal

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 of 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, your customer ratings and number of orders fulfilled.

Returns and Seller Protection on Flipkart

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 setup 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. SPF can be requested by the seller 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, then 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 category of the product.

The same 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.

In case the goods are lost or damaged during transit, then you are eligible for a refund as per the SPF scheme. You can raise a claim from your dashboard. However, the refund will depend on the situation and the product. This is completely at the discretion of the members overseeing the SPF claims and refund process. 

Start Selling on Flipkart

Start Selling on Flipkart

Now that you know everything that is required to be a seller on Flipkart, you just need an awesome product, strong determination and all the required documents to start selling on Flipkart. Vigilance is a virtue in the e-commerce domain and you need to be aware of everything going on around you to monitor the competition, disrupt fraudulent attempts and boost your business’s prospects significantly.