Looks like Flipkart wants to be a favourite with not just consumers but the sellers too. In what looks like an attempt to get into the good books of sellers, Flipkart has announced faster payment processing for sellers selling through its online platform, with the tagline in big and bold “Faster Payments, Happy You, Happy Us”.
The new payment cycle has already been implemented from yesterday, 10th July 2014. As per the new system, payment cycles have been reduced by two days as below:
Tier 1 Sellers
If settlement defect rate exceeds 5%, the seller is moved back to tier 2.
Tier 2 Sellers
All new sellers are by default tier 2 sellers. They can move up to tier 1 status once they fulfil the following criteria:
In a hurry to outbid competition and leave them behind, this seems to be a strategic move from Flipkart to show sellers that it cares for them too and not just the customers. That too, at a time when other marketplaces like eBay have increased payment cycles for sellers.
Benefit for Indian Online Seller with Flipkart’s shorter payment cycles for sellers
It has been an ongoing complaint/debate from sellers that marketplaces put customers first, most times turning a deaf ear to sellers’ woes. Flipkart has proven otherwise by reducing payment cycles, that too at a time when others increasing it.
Coupled with other seller benefits, this is the ideal time to increase your selling activities on Flipkart. With faster payments, you can use that money to procure more and sell more. In effect, this would help you to move higher to tier 2 status which would mean even faster payments being remitted to you.
After dwindling with her family business, into travel and hospitality, for more than 3 years, Pooja Vishant found her true love in writing. Happy-go-lucky and cheerful, she loves pink; so pink is the way to go if you want to get into her good books. The Associate Editor keeps track of even a leaf that has moved in the ecommerce world!