Over 10 crore people buy on Flipkart from over 100000 sellers which makes Flipkart one of the biggest online marketplaces in India. Small traders and manufacturers can join the juggernaut and prosper. Even a newbie can establish a business entity and start selling on Flipkart. Join Flipkart as a seller and you are on the high road to prosperity.
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• Flipkart has grown to such an extent that it has even acquired eBay India! Its revenues exceed Rs 19800 crores in 2017 with a growth rate of 19%.
• Flipkart is a household name in India for online buying and whenever anyone wishes to buy any product, they first choose to search on Flipkart thereby increasing chances of sales for sellers on Flipkart.
• Flipkart has a customer base that exceeds 100 million.
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Before you learn how to register on Flipkart or how to become a seller on Flipkart you must make a choice of products to sell on Flipkart. This is especially relevant if you are starting fresh as a new seller on Flipkart. Flipkart has about 70 product categories. The main categories comprise of electronic products including mobiles, cameras, TVs and computers, home and kitchen appliances, sports and fitness products, jewelry, fashion apparel, footwear, games, toys, media, books, baby care and ebooks. Products that are sold in large numbers belong to consumer electronics, books, and media category.
Even before you formulate a business plan for selling on Flipkart you must know the returns policy. Buyers have a week or so in which to return the product, no questions asked and ask for a refund. If a product is not as specified or has a defect the seller is obligated to make a replacement at no extra cost. As a seller, you will be expected to bear the shipping fee for replacement if the product is defective but if it is a matter of exchange due to some specification difference then the seller does not have to bear the reverse shipping fee.
If you wish to register as a seller on Flipkart you must know that sellers are expected to dispatch to any corner of India. You must know about shipping and delivery process of Flipkart. Flipkart offers standard delivery to any destination in India in which Flipkart’s logistics division Ekart takes care of shipping and delivery. Flipkart Advantage is the other shipping program in which sellers sell in bulk to Flipkart and Ekart manages inventory as well as shipping. This works like Amazon's FBA program. In this case, fast delivery is assured for buyers. When you register as a seller on Flipkart you can choose either of the two shipping models. All packaging materials bear Flipkart branding and Ekart provides these materials.
Listing products on Flipkart are free. Registration as a seller on Flipkart is also free so how does Flipkart earn? They charge fees when a product is sold by a seller on Flipkart. A commission is charged on each sale and percentage varies from one product category to another. Then there is a shipping fee, a fixed fee, and collection fee, all of which are added together and GST at 18% is charged. When you list products on Flipkart and price then you must keep in mind the charges Flipkart will levy.
You can sell a product on Flipkart and Flipkart may collect payment by credit card/debit card or cash on delivery but they have a fixed policy of making payments to sellers on Flipkart. New sellers are put into tier 2 and receive payment within 10 days of a sale being completed. Tier 1 is made up of older sellers and they receive payment within 5 days of completion of a transaction. Tier 2 seller on Flipkart can be upgraded to tier one after 30 days or 30 orders executed successfully. Payments are made by NEFT transaction.
If you wish to sell things on Flipkart you must first undergo the business registration process. You can register as a sole proprietor, partnership or private limited company or other options.
If you register a business with you as the owner then it is a sole proprietorship. The owner is fully liable and there is no protection that limited liability legal arrangement offers. You need to prepare and submit the following documents:
• GST Registration certificate
• PAN card
• Proof of identity and residence
• Statement of bank account
• Declaration on a business letterhead that you own and manage the bank account registered with Flipkart.
You can form a private limited company and register it with the Registrar of Companies under the Companies Act 1956 after which you approach Flipkart through seller.Flipkart.com for registration as a seller along with following documents:
• Certificate of incorporation as a private limited company
• Copy of Memorandum & Articles of Association
• Company PAN card
• Proof of business address and identity proof
• GST registration certificate.
Registration as a private limited company involves a lot of legal hassles so an easier way is to register with Flipkart as a limited liability partnership (LLP) firm because you then have limited liability in the event of loss or claims. You need to submit following documents at the time of registering with Flipkart as a seller:
• Identifying document of partner holding a power of attorney
• Power of attorney of authorized person for the firm
• PAN card of the LLP
• Partnership deed copy
• LLP Incorporation certificate
• Address proof – telephone bill/electricity bill/lease agreement
Trusts and Foundations can become sellers on Flipkart and the process is the same, the change being in providing relevant legal documents of the trust to establish its bona fides and legal standing.
You can choose to start a proprietorship firm, a limited liability partnership, a private limited company or a trust to do business with Flipkart but you also have to comply with tax regulations for which you will need to furnish:
• GST registration certificate
• PAN card of individual or company as applicable
• TAN for tax deduction at source (TDS)
• Bank account details
Keep these ready before you log on to seller Flipkart website and start the registration on Flipkart as seller process.
How to become a seller on Flipkart is easy once you have the basics in place as outlined above. Then you can log on to seller.Flipkart.com, furnish email and phone and start the registration process. Once you submit details you will receive calls and will have to undergo a verification process. If everything is in order your registration is approved otherwise you will have to satisfy queries they raise. Once approved you can start listing products on Flipkart and then start selling. You can photograph products and create write up for each and list a minimum of 5 to 10 products. After that you will need to know how to manage orders through seller central on Flipkart, execute them and manage payments and inventory too. If this sounds difficult you need not worry. You can take the help of Flipkart approved associates such as Digicommerce, who provide complete assistance.
How does Digicommerce help you on Flipkart
Digicommerce provides A to Z assistance for freshers wishing to sell on Flipkart.
• They can start by advising you on choosing the right company formation and registration with GST. Thereafter, if registration on Flipkart is needed you get help here too.
• If listing products is a tough job then Digicommerce arranges photography and write-ups.
• If managing orders on Flipkart and managing inventory on Flipkart is beyond you, Digicommerce provides these services and keeps you updated on status at all times.
• Digicommerce also assists with tax return filing in case of GST and income tax.
• In addition, Digicommerce handles online promotions across various media and channels such as social media. You are free to focus on procuring products and selling them on Flipkart.
Digicommerce is a total solutions provider for online e-commerce. The IT-powered company offers the entire gamut of services required to make your e-commerce venture a success. Their service offerings include but are not limited to:
Consultancy on company formation and business registration
Registration with GST and obtaining GST certificate
PAN card assistance
Website design and development services with e-commerce enabled websites
Supporting online promotions, SEO, and social media promotions
Income tax return filing
Total order and inventory management for clients who are sellers on Flipkart as well as other online retail portals.
Digicommerce is here to help. Those who are not aware of how the online marketplace processes work can simply assign the task of business registration on Flipkart to Digicommerce and focus on other important parts of their business.