Flipkart which is the Largest and the Top Most Marketplace and now a days it is the Top Most Position by the revenue, it left behind Large Companies Like Tata, Hindalco, Jet Airways etc..
This article is written by Gurudatt sharing his own experience as an online seller with all major ecommerce marketplaces in India.
First Few words of Mr. Gurudatt and after that I am sharing my Experience also.
Thanks Gurudutt ji, I Read your Article I also want to Share all the things which you share so no need to share it again the Same Experience I had, as yours I also made Loss L
I am selling Antivirus Software’s and Internet security Software’s On Flipkart
Here one more thing I want to add the Calculation of the Flipkart and all Other Marketplace,
Generally don’t know about Other Seller But I am Keeping my Eyes On the Seller Net Payable Amount on Every Marketplace giving this kind of calculator From where you can get an idea how much Exactly Amount you will be paid once the payment made.
So I am always Keep my Eyes on That calculator and using and changing my price as per other Seller Competition, but after 1-2 months when my Accountant Called me as you said in your article, I reached with all the Invoice and Bank Statements and Settled and Unsettled Statements,
After all the Calculation My Accountant show me Some Figures and I really shocked,
I am making Loss on Almost Every Product and few of product are earning 5-10 Rs. Only L
And on Flipkart’s Big Billion Days Sales, I was very much Excited because, Flipkart gave me 2000 Rs. credit to advertise my product and join advertisement campaign,
70% to 80% of total loss I made on those 3-4 days which was Flipkart’s Big Billion Days,
Because i thought Flipkart gave me 2000 Rs Credit to Advertisement so i will be Earn much more within 3-4 days, and really on those days I got 20-30 Order Per Days and i was very happy, and fulfilled all the products within time but without checking my selling and discounted price i focused to sold only, after those days i found which products i sold those price are Less than my Purchase Price and in that all the Charges applicable as you said before
Marketplace commission – 15%
Domestic shipping per Kg – Rs 30
National shipping per Kg – Rs 45.
Fixed commission per order – Rs 10 (for orders above Rs 250)
And flipkart’s Big billion days become my big loss days
To show the calculation I am sharing the Image of the Calculator as well the Settled Payment Details.
When I List the Product that time I make my Product Price 810 Rs + 50 Rs Shipping charges = 860Rs Total Charges As per Calculator when payment will be Settlement I will get 721Rs. And that is Ok for me,
When the payment settled I was shocked, See what Flipkart Paid me,
Sale Amount: 810 Rs
Discount: -40 Rs
Marketplace Fees: -185.30
Service Tax: -25.95
Net Payable: 598.75 Rs Only.
The Purchase Price of that Product is 600Rs.
600Rs (Purchase Price ) – 598.75Rs(Receive Payment)= 1.25 Rs loss per product,
And I sold many products on those big billion days Sale.
860(810+50 Shipping Charges)– 598.75 (Net Payment) = 261.25 Profit per Product
Profit of Flipkart 261.25Rs where Seller making Loss of 1.25Rs.
This is the Calculation of single Product which is only 810Rs. I am selling 30+ Products and some of 2500Rs -5000Rs also. Now you can think how much loss I made by doing business from Flipkart??
Really Flipkart have Big Billon Days Every Day they don’t need to run special Day to Earn Billons,
Because as they are advertising that they have 30,000 Sellers and 4.5Caror Customers then obviously they Flipkart Earning billons and Billons on Every day.
Here I know how marketplace Specially Flipkart can become the 1st Rank in Online Market Place.
Because they are doing Happy their Customer as well Earning for them also and Sellers always make Losing don’t know Other as said Gurudutt I did not called but as per my Experience Seller Defiantly make Loss if they Calculate Properly,
Few days back I read one of Article online I surprised
Flipkart’s valuation is now over $15 billion (Rs 100,000 crore). In comparison, the stock market values the venerable Tata Motors at a mere Rs 95,000 crore.
Hindalco, India’s largest aluminum company, has a market valuation of Rs 16,000 crore. Snap deal, which began trading just five years ago, is valued at Rs 35,000 crore. India’s biggest airline, Jet Airways, with large assets, is valued at Rs 3,800 crore.
And After made loss by Business from Flipkart. I understood how it become over $15 Billon.
By my Experience and from Gurudutt Experience I can Only Advice to Other Seller make Proper Calculation, Are you Really Earning??
And if you don’t then Stop Selling On Online, because by this way you are not Earing but yes the Online Marketplace Companies are Earning Billions and Billions,