In April, Paytm launched a zero commissions mobile app marketplace. Snapdeal soon followed up by re-launching the Shopo mobile app, offering a zero commissions policy amongst other benefits for sellers. One month later, Flipkart stated its ambitions to create a zero commissions programme and generate money from its sellers by inviting them to pay for ads on its platform.
Flipkart has now put the wheels in motion, by piloting a project with 350 distinguished sellers, allowing them to sell their products without having to pay a commission. The ecommerce leader currently has 80,000 sellers and it is hoped this initiative would encourage more sellers to jump on board in the future.
Recipe for success
Flipkart who is opening up its delivery service to 3rd party sellers in March 2016, envisages logistics and advertising as the two key ingredients for generating multiple streams of income. It acquired AdIQuity this year and is now planning to utilise the mobile advertising platform to motivate sellers to place ads on the online marketplace.
Benefits for sellers:
- The money saved on commissions can be reinvested in advertising
- Sellers can track customer behaviour with Flipkart’s analytics
- Sellers can bid for real time ad slots on the mobile app
- Sellers can produce ads in multiple formats, e.g. video
“Flipkart is a marketplace which helps sellers connect with customers from across the country. Flipkart’s commission structure is designed to benefit sellers whilst offering them the bestselling experience. We are continuously working towards offering sellers transparency, a better cost structure and growth opportunities to expand their reach,” said a Flipkart spokesperson.