The likes of Flipkart, Paytm, Amazon and Snapdeal are doing what ever it takes to onboard more and more online sellers, which will help them to grow their Gross Merchandise value (GMV). The key priority is to not only attract greater number of online sellers, but also ensure that they are active merchants.
Ecommerce marketplaces are helping sellers:
- List products online
- Develop attractive pricing models
- With efficient financial assistance
- By increasing warehousing space
- By Building technology to enhance user-friendly platforms
“2016 will be the year that merchants start seeing the benefits of selling online, but a lot more needs to be done by us. Last year was the year of oiling the machinery,” said Sandeep Komaravelly, senior VP at Snapdeal and head of its mobile marketplace Shopo.
“By the end of 2015, we had 1.7 lakh sellers, of whom about 1lakh were verified with catalogues. Over the next 12 months, we are looking to have 5 lakh verified sellers on board, ” stated Sudhanshu Gupta, assistant vice-president (business) at Paytm.
Amazon has focussed efforts on building its database of Small and Medium enterprises. Initiatives such as Fulfilment by Amazon and Amazon’s global seller programme have been received well by online sellers.
“We have seen significant traction from small and medium enterprises across the country and are witnessing over 250% growth in sellers year-over-year. Currently, over 55,000 Indian sellers sell on our platform,” reasoned Gopal Pillai, director (seller services), Amazon India.
Through its seller initiatives Flipkart is aiming to grow small Indian brands into large ones. It recently offered priority status to sellers who invest in warehouse space and also cut the Service Level Agreement procurement time to 48 hours to make its sellers more efficient.
“Our focus is to nurture small brands into big brands. Over the past one year we have seen that domestic brands in the accessories and home and kitchen appliances categories including Maharaja Whiteline, Bajaj, Nova, Ambrane and Maxx have grown at an aggressive 150% and contribute about 70% of (gross merchandise value) for the category itself,” said Adarsh Menon, vice-president of Flipkart’s electronics category.
ShopClues, Myntra, Craftsvilla
Other ecommerce firms which are attempting to seduce more online sellers to sign up include ShopClues, Myntra and Craftsvilla. While ShopClues launched a sellers club for its vendors, Myntra built a visual analytics tool and Craftsvilla tied up with banks to provide financial assistance to sellers.