A Detailed Guide to Flipkart Seller Commission Charges

Introduction

Flipkart, one of the largest online marketplaces in the country, has experienced tremendous growth since it was founded in 2007. Through its e-commerce platform, the business has significantly helped thousands of businesses in selling their products.

In 2022, 187.4 million people visited Flipkart, an online marketplace owned by Walmart. Flipkart is a great platform to expand your business and ensure larger visibility. The platform aids in business growth and online identity building. This article examines why to sell on Flipkart seller, the fees and charges details, and offers tips on how the marketplace might help your business.

Why Should You Sell on Flipkart?

Your website is the primary tool to connect with customers and promote your goods and services. Your business can also grow through a number of additional channels, one of which is an online marketplace like Flipkart. Here are some reasons why you should exhibit your products on Flipkart.

1. Reach

Even if your products are exceptional and your company has great potential, sustained growth calls for a wider audience reach. You may reach more than a million users with the help of Flipkart. Your business will need a larger presence to experience high sales and maximize profits.

2. Costs

When we compare selling on Flipkart to an offline store, the e-commerce platform offers cost-effective solutions. With Flipkart, you can maximize sales, create better brand awareness, and provide a more convenient shipping experience. The Flipkart store is simple to set up, with reasonable commissions, allowing you to earn a substantial profit.

3. Logistics

Flipkart makes the online selling process simpler for every business that registers on the e-commerce platform. You don't need to be concerned about product delivery or shipment. For hassle-free delivery of products to your customers, their logistics network of delivery agents organizes delivery through 200 pick-up locations.

4. Support

Flipkart is a great platform because it helps companies launch their products online. By collaborating with partners who assist with product photography, promotions, and advertising, Flipkart ensures that the products are properly displayed, maximizing sales.

5. Data

The e-commerce platform offers businesses valuable market information that shows product demand, current trends, and other factors that contribute to product sales. With this data, businesses can better understand the customer and market needs in advance and make informed decisions.

What are the Flipkart Seller Charges and Fees?

The following elements determine the seller commission charges and fees on Flipkart:

1. Product category

2. Subcategory of your product

3. The item's selling price (or order item value)

4. Seller's Performance Level (Bronze, Silver, Gold): Based on your performance as a seller, including your on-time fulfillment rate, cancellation rate, client returns, etc.

5. Fulfillment Mode (By Seller, By Flipkart)

6. The order's source and destination locations (local, zonal, and national).

7. The product's weight and dimensions (weight-based and volumetric).

8. Storage time (when stored in a Flipkart warehouse, either short-term or long-term)

9. The type of shipping (prepaid or COD)

10. Return Type (Client-Initiated, Courier-Initiated (RTO), Replacement)

The following are the different kinds of seller commission charges and levies that Flipkart assesses to its sellers:

The total settlement sum is your (Order Item Value) minus (Marketplace Fees) minus (GST on Marketplace Fees). The following elements make up the marketplace fees:

1. Commission Fee

This seller commission charge is associated with using the Flipkart marketplace. It is set as a portion of the Order Item Value, which include both the selling price and the shipping charge paid by the client. It does not include any NDD (Next Day Delivery) /SDD (Same Day Delivery) fees or discounts provided by sellers. By subcategory and, in some situations, by FSN, commission rates differ. In the event that a client or courier returns an item, no commission is assessed. All tier vendors are subject to the same rate card. The rate may be between 2.8 and 25%.

2. Fixed Fee Charge

Any order that is successfully sold through Flipkart's marketplace and is not returned or canceled is subject to this fee. This varies depending on the subcategory the product falls under and the Order Item Value. If a consumer or a courier returns anything, there is no fixed fee assessed. All tier vendors are subject to the same rate card.

3. Collection Fee Charges

The orders placed on Flipkart's marketplace platform are subject to payment collection fees. The sum paid by the customer, including any delivery fees they may have paid, is the selling price. All tiers are subject to the same rate card. The rate ranges between 2% and 15%.

4. Shipping Fee Charges

Customers will have to pay this amount for receiving their order's products. The larger volumetric weight of an item is considered for charging when it is weighed with primary packing. Additionally, the shipping fee charge varies according to the type of shipment, local, regional, or national. The maximum billable weight for some verticals is 1.5 times the dead weight. Your rank as a Flipkart Silver, or Gold Seller will decide the specific pricing.

5. Reverse Shipping Charges

Reverse shipping fees vary depending on the shipment zone and chargeable weight and are assessed for reverse pick-up and delivery if customers return an item. The maximum billable weight for some verticals is 1.5 times the dead weight. All tier vendors are subject to the same rate card. It might cost anywhere from Rs. 6 and above, depending on the zone & weight.

6. Return Charges(Customer Refund)

All customer returns are subject to this policy. Note: During product inspection at the fulfillment center, if any problems with, inaccuracies, or missing items are found in the returned goods, SPF (Seller Protection Fund) will proactively pay for the reverse shipment. Returns resulting from the failure of delivery to the customer or cancellations by the customer before delivery completion are not subject to fees. These types of returns are called RTO (Return to Origin).

Fees Associated with Flipkart Advantage or Flipkart Fulfillment

1. Pick & Pack Fee Charges

A pick and pack cost is charged while utilizing Flipkart Advantage for choosing and packaging purchase products. This charge is affected by the weight and the fragility of the product.

2. Same Day Delivery (SDD)

Customers who want delivery on the same day as their order date are subject to a Same Day Delivery (SDD) surcharge.

3. Next Day Delivery (NDD)

If a customer requests delivery the day after their purchase date, they will be charged a Next Day Delivery (NDD) cost.

Conclusion

Through various solutions, Flipkart is a business-friendly platform that helps every e-commerce store increase its sales. More significantly, setting up your business on the platform is quick and easy.

To reach a larger audience, you must increase your online visibility, and Flipkart, with its widespread use and solid reputation, can assist your company in achieving these objectives.

To grow your business, visit Gonukkad, an interactive platform that enables retailers & entrepreneurs to create an excellent online presence and develop marketing strategies to boost their online presence and enhance sales.