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How To Sell On Flipkart? Step-by-Step Guide Guide [2022]

How To Sell On Flipkart_ Step-by-Step Guide Guide [2022]

What’s it like to sell your products on Flipkart — one of India’s largest fashion and lifestyle e-commerce platforms?

For starters, it’s pretty competitive. There are already a ton of big brands and established sellers on Flipkart. So, how do you make your mark and get people to buy your products? 

If you’re thinking about selling on Flipkart, or are already doing so, then this guide is for you.

We’ll take you through everything you need to know about selling on Flipkart, from setting up your seller account to marketing your products and dealing with customer queries.


Flipkart expands its grocery services to Tamil Nadu and Kerala | Mint

What’s Flipkart and How Does it Work?

Flipkart is an Indian e-commerce platform founded in 2007 by Sachin Bansal and Binny Bansal, two former Amazon employees and alumni of the IIT, Delhi. The company started off as an online book store but soon expanded to sell a wide range of products, including electronics, fashion, home furnishings, and more.

Flipkart is one of the largest online retailers in India, boasting more than 10 million daily visits, 100 million registered customers, and 8 million monthly shipments to 1000 plus cities around the world.

How Does it Work?

Flipkart operates on a marketplace model, where sellers can create their own store on the platform and sell directly to customers. When a customer buys a product from a seller on Flipkart, the order is processed and fulfilled by Flipkart. The company also provides customer support and handles returns for all sellers on its platform.

Flipkart also owns and operates a logistics and delivery company called E-kart. E-kart handles the warehousing, packaging, and delivery of all products sold on Flipkart.

In 2018, Walmart acquired a 77% stake in Flipkart for $16 billion, valuing India’s e-commerce giant at $20.8 billion.


What Are the Advantages of Selling on Flipkart?

There are several advantages to selling on Flipkart, including: 

  • Reach: With over 100 million customers and 10 million daily visits, Flipkart offers sellers a massive reach. 
  • Brand Recognition: Flipkart is a well-known and trusted brand in India. Being associated with Flipkart can help increase the perceived value of your products. 
  • Ease of Use: Flipkart has a user-friendly interface and seller tools that make it easy to list and manage products on the platform.
  • Logistics and Delivery: Flipkart’s in-house logistics company, E-kart, delivers products sold on the platform to customers across the country. That helps sellers save on delivery costs and ensure that products are delivered on time. 
  • Customer Support: Flipkart offers 24/7 customer support to help resolve any queries or issues that buyers or sellers may have. 
  • Easy Payments: The settlement amount is deposited into the seller’s bank account within 7 and 15 days from the date of delivery, depending on the payment method used by the buyer.
  • Attractive Rewards: Sellers on Flipkart can earn attractive rewards and incentives by meeting specific targets set by the company.
  • Protection Against Return Fraud: Flipkart has a return fraud protection policy in place to protect sellers against fraudulent returns.
  • No Listing Fee: There is no listing fee for selling on Flipkart.

What Are the Disadvantages of Selling on Flipkart?

While there are many advantages to selling on Flipkart, there are also a few disadvantages, including: 

  • High Competition: There is a lot of competition on Flipkart, especially from established brands and sellers. This can make it difficult for new sellers to get noticed.
  • Commission and Fees: Sellers are charged a commission by Flipkart on every product sold. The commission rate ranges from 5% to 35%, depending on the product category. 
  • Returns Policy: Flipkart has a lenient returns policy that allows buyers to return products even if they are not defective. That can lead to an increase in return rates, which can be costly for sellers. 
  • Long Payment Cycles: The settlement amount is deposited into the seller’s bank account only after the buyer has received the product and Flipkart has processed the return (if any). That can take up to 15 days, a long wait for sellers.

Fee Structure for Flipkart Sellers

There are four main types of fees that sellers on Flipkart need to be aware of:

  • Commission Fees: Flipkart charges a commission on every product sold. The commission rate ranges from 5% to 35%, depending on the product category. For example, the commission rate for electronics is 12% (approximated figure), while the commission rate for fashion products is 20% (approximated figure).
  • Shipping Charges: Sellers need to pay shipping charges for every product sold. The shipping charge depends on the weight and size of the product and the delivery location.
  • Collection Fee: Payment gateway or “collection” charges vary depending on the payment method used by the buyer.
  • Fixed Fee: In addition to the commission and shipping charges, Flipkart also charges a small fee on each transaction. 

After making a sale, the settlement amount you’ll receive will be the total amount charged to the buyer, minus the commission fee, shipping charges, Government taxes, collection fee, and fixed fee.


What will be the future of Flipkart?

Here’s an Easy, Real-time Example You Can Follow

Assuming you sell an item worth $1000 on Flipkart, the commission rate is 20%. The total amount you’ll receive from the sale will be: 

Commission = 20* $1000/100 = $200

Shipping Charges: Let’s say the shipping charges are $50. 

Fixed Fee: Flipkart charges a fixed fee of $10 on each transaction (assuming). 

So, the total marketplace fees will be $200 +50 +10 = $260. 

The settlement amount you’ll receive will be $1000-$260 =$740. 

Now let’s calculate the service tax (14% of the marketplace fees) that you need to pay on the $260 marketplace fees. 

Service Tax = 14% of 260 = $36.4 

The final settlement amount you’ll receive will be $740 – $36.4 =$703.6

This is just an example to help you better understand how the fee structure works on Flipkart. The actual fees may vary depending on the product category, commission rate, shipping charges, etc.

What Are the Requirements for Selling on Flipkart?

If you’re considering selling on Flipkart, there are a few requirements you’ll need to meet:

  • A registered business in India with a valid GSTIN number.
  • You’ll need to have a PAN (Permanent Account Number) card.
  • You’ll need to open a current account in a bank that Flipkart approves.
  • You must be 18 years or older.
  • You must have a valid email address and phone number.
  • Pick-up/business address must be within Flipkart’s serviceable area.

What Are the Types of Products You Can Sell on Flipkart?

Almost anything. As long as it’s legal, you can sell it on Flipkart.

However, there are certain restrictions on certain types of products, such as:

  • Alcohol
  • Arms and ammunition
  • Counterfeit products
  • Drugs and narcotics
  • Endangered species
  • Ivory
  • Pornographic material
  • Tobacco products

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How to Sell on Flipkart: Step-by-Step Guide

Selling on Flipkart is not as difficult as it may seem. With a little bit of effort, you can get started in no time. Here’s a step-by-step guide on how to sell on Flipkart:

Step 1: Get a Legal Business Entity

Before you can start selling on Flipkart, you need to have a legal business entity. That can be in the form of a sole proprietorship, partnership, or company. 

When you sign up to be a seller on Flipkart, you’ll be asked to provide all the legal documents related to the type of business entity you operate.

In India, there are five types of business entities:

* Sole Proprietorship: A sole proprietorship is a business owned and operated by one person. It’s the most common type of business entity in India.

* Private Limited Company: A private limited company is a business entity registered with the Ministry of Corporate Affairs. 

* Limited Liability Partnership (LLP): A limited liability partnership is a business entity where the partners have limited liability. 

* Trust and Foundation: A trust or foundation is a business entity created for charitable purposes.

Each of these business entities boasts different features and its own set of pros and cons. You have to know which option matches your criteria. 

If you make the mistake of choosing the wrong structure for your business, the implications can be bad for your business. Note that the company also has to file taxes and follow all the company laws.

Let’s look at the three most common business structures and weigh their differences.

Sole Proprietorship

A sole proprietorship is the most common type of business entity in India. This type of business is owned and operated by one person. The main advantage of a sole proprietorship is that it’s easy to set up, and there’s less paperwork involved.

Advantages

  • It doesn’t require government registration
  • It doesn’t require government regulatory paperwork
  • The profits accrued go directly to the owner
  • Very easy to set up
  • No double taxation
  • The owner’s income is the only income that is taxed

Disadvantages:

  • The business and the owners are the same, so the owner is personally liable for all debts and losses incurred by the business
  • There can be difficulty in raising capital since the owner is solely responsible for the business

Requirements:

  • A PAN Card
  • A bank account
  • Proof of identity and address (Utility bills and rental agreements)
  • Aadhaar card

A Partnership Firm

A partnership firm is a type of business entity where two or more persons come together to carry on a business. In a partnership, each partner is liable for the debts and losses incurred by the business.

Advantages:

  • Can raise capital quickly as there are multiple partners
  • The combined expertise of the partners can lead to better decision making
  • Effortless to start
  • Auditing isn’t necessary 
  • Shutting down is hassle-free
  • Risks are shared between partners
  • You don’t need to submit annual returns

Disadvantages:

  • If one partner leaves, the business may dissolve
  • Control over the business is divided among the partners
  • Profits are shared among the partners

Requirements:

  • The partnership deed has to be registered with the Registrar of Firms. 
  • The partners’ names, addresses, and ages have to be mentioned in the partnership deed.
  • The partnership deed should also mention the nature of the business, each partner’s shares, and the duration partnership duration.
  • A PAN card for each partner
  • A bank account in the name of the partnership firm
  • Proof of identity and address (Utility bills and rental agreements) for each partner
  • Aadhaar card for each partner

A Private Limited Company

A private limited company is a type of business entity registered with the Ministry of Corporate Affairs. A private limited company has many features that make it attractive to businesses, such as limited liability, easy transferability of ownership, and perpetual succession.

A private limited company is a popular option among startups and small businesses. The company structure is in high demand because it provides limited liability protection to its shareholders. 

Advantages:

  • Limited liability: The shareholders of a private limited company are not liable for the company’s debts. If the company can’t pay off its debts, the shareholders will not be held responsible.
  • Easy transferability of ownership: The ownership of a private limited company can be easily transferred. That’s because the shares of a private limited company are freely transferable.
  • Perpetual succession: A private limited company has perpetual succession, which means that the company’s life is not affected by the death or retirement of any of its shareholders. 
  • Tax Benefits Are Higher: As a private limited company is a separate legal entity, it is eligible for certain tax benefits not available to other business entities. 
  • Debentures Issuing:  A private limited company can issue debentures to raise capital. Debentures are the debt instruments that a company issues to its shareholders.

Disadvantages:

  • Compliance Requirements: A private limited company must comply with various regulations and guidelines set by the Ministry of Corporate Affairs. That includes filing annual returns, maintaining financial statements, and holding shareholder meetings. That can be costly and time-consuming.
  • Double taxation: A private limited company is subject to double taxation. That means the company will be taxed on its profits and the dividends paid to shareholders.

Step-by-Step Guide on How to Register a PLC: 

Step 1: You can start by filling up the following form to obtain the DIN or DPIN (Designated Partner Identification Number).

Step 2: Fill up the following Name Registration Application form

Step 3: Draft the MOA (Memorandum of Association) and AOA (Articles of Association) by the SPICE-E form on MCA’s website. 

MOA states the company objectives and powers, while AOA defines the rules and regulations for managing the company.

Step 4: Get PAN and TAN

You can apply for a fresh allotment of PAN online. Also, any request to change or correct the PAN data can also be made online.

The online applications can be made via the NSDL website or the UTIITSL website. 

The charges for getting a new PAN or changing an existing one are Rs. 93 (excluding taxes) for Indian citizens and Rs. 930 (excluding taxes) for foreign citizens.

As per RBI guidelines, any entity making an e-commerce transaction must provide a PIN for authentication. So, before you apply for a PAN/TAN, you will need to obtain a PIN from the bank whose credit/debit card you will be using for the transaction.

Limited Liability Company (LLP) 

Compared to a private limited company (PLC), an LLP has a relatively economical structure and compliance regime.

It’s also better than a partnership firm because tax liabilities are shared among owners, and each partner’s liability is limited to their agreed contribution.

However, an LLP has a few disadvantages compared to a PLC. Read on to learn more about the pros and cons of an LLP.

Advantages: 

  • Easy to set up:  An LLP can be easily set up with just two partners. 
  • Less compliance: An LLP must comply with fewer regulations than a PLC. For instance, there is no requirement to hold shareholder meetings or file annual returns.
  • Lesser Paperwork:  The paperwork required to set up an LLP compared to a PLC.
  • Flexible profit-sharing: The profit-sharing arrangement in an LLP can be decided as per the agreed partnership agreement. That gives the partners more flexibility.
  • Liability Free:  The partners of an LLP are not liable for the debts of the LLP.
  • Doesn’t Necessarily Need to Stick to Its Business Structure:  An LLP can change its business structure without dissolving the partnership.

Disadvantages: 

  • Minimum of Two Partners Required: Unlike a sole proprietorship or PLC, an LLP requires a minimum of two partners.

How to Register an LLP?

Step 1: 

The first step is to obtain a DIN or DPIN (Designated Partner Identification Number) by filling up the following form.

Step 2: 

Fill up the Name Registration Application form with the proposed name of your LLP.

Step 3: 

After obtaining your Digital Signature Certificate (DSC), you can proceed to register it on the Ministry of Corporate Affairs Portal.

Step 4: 

Once your LLP name has been approved,  you can fill up the incorporation form to obtain the incorporation certificate and receive the LLP agreement.

Step 2: Seller Registration on Flipkart: 

The next step is to register as a seller on Flipkart. 

  • Step 1: Go to Flipkart’s seller homepage and click on the ‘Register Now’ button. You’ll be directed to a landing page with the seller sign-up form. 
  • Step 2: Fill in your personal details like name, email address, mobile number, etc. 
  • Step 3: Once you have filled in all the required details, click on the ‘Reister & Continue” button.

You’ll receive an email from Flipkart confirming your registration.

Step 4: Pick Your Address

You’ll be asked to enter your pick-up address on the next page. Enter the pin code, which will be verified before you’re taken to the next step.

Step 5: Enter Your Business Details

In this step, you’ll need to enter your business details like the nature of your business, registered company name (if any), GST number (if any), etc.

Step 5: Enter Your Bank Details

In this step, you’ll be taken to a page where you can enter your bank account details. You’ll need to fill in your account number, IFSC code, and other information.

You’ll receive another verification email from Flipkart on your registered email address.

Step 6: Fill in Your Store Details

You’ll be directed to the final page, where you’re required to fill in your store details like store name, logo, banner, category, etc.

You’ll also be asked to provide a scanned copy of every supporting document. The following documents are required:

  • Seller agreement 
  • GST registration certificate 
  • PAN card 
  • Canceled cheque/bank statement 
  • Address proof (any one of the following – Aadhar card, Passport, Driving license, Election card, Rent agreement) 
  • Photographs ( passport size –soft copy)
  • Supporting KYC documents

You’ll also be required to provide the following details:

  • Name of your business store
  • Virtual signature
  • Business details
  • Bank details
  • A list of products you wish to sell

Once you’ve provided all the required documents, click on the ‘Submit’ button.

In addition to the above documents, you’ll also be asked to provide other documents. These documents will vary depending on the type of business you registered.

Step 3: Submit Your Business documents

At this point, we’d like to assume you’ve already registered your business.

Remember the four categories of businesses we talked about earlier?

The documents you’ll be required to submit will depend on the category of business you fall into.

Let’s take a look at the documents required for each category:

Sole proprietorship:  

Identity Proof

  • Bank statement for the account in which you’ll be receiving payments from Flipkart
  • Letter issued by any recognized Public Servant or Public Authority verifying your identity
  • A signed business letterhead declaring that you’re the person managing the bank account
  • Voter ID
  • PAN Card
  • Driving license
  • A photo identity such as an Aadhar card, PAN Card, or Passport
  • Passport photos

Address Proof

  • Lease or license agreement for business premises
  • Utility bills such as electricity, water, or gas bill (not more than three months old)
  • Letter from employer
  • A letter issued by any recognized Public Servant or Public Authority verifying your identity and business address
  • Proprietorship’s bank account statement for the past six months
  • Proprietorship firm landline or mobile bill 
  • Proprietorship firm electricity bill

Company or LLP: 

Identity Proof

  • Certificate of LLP Incorporation or partnership registration
  • Memorandum of Association (MoA) and Articles of Association (AoA)
  • PAN Card of the company/LLP
  • Deed of Partnership
  • Power of attorney issued to the authorized signatory

Address proof of the registered office

  • An official address proof confirming the address of the signatories or the partners
  • A cancelled cheque for the company/LLP bank account
  • The firm’s telephone bill
  • The firm’s electricity bill
  • Rental or lease agreement for the business premises
  • A list of all partners (in case of a partnership firm) or directors (in case of a company) with their photographs and signatures
  • LLP’s bank account statement for the past six months.

Private Limited Company

Identity Proof

  • Copy of memorandum of association (MoA)
  • Copy of Certificate of incorporation
  • PAN Card of the company 
  • The board resolution authorizing the signatory to open a seller account on Flipkart and providing them with the relevant power of attorney

Address Proof

  • Address proof of the registered office 
  • An official address proof confirming the address of the signatory
  • A canceled cheque for the company bank account 
  • The firm’s telephone bill 
  • The firm’s electricity bill 
  • Rental or lease agreement for the business premises
  • A list of all directors with their photographs and signatures

Trust and Foundation

Identity Proof

  • Copy of registration certificate of Trust or Foundation, issued by the Registrar of Companies
  • PAN Card of the trust/foundation

Address Proof

  • Landline or mobile bill for the business premises in the name of the Foundation or Trust
  • The electricity bill for the business premises in the name of the Foundation or Trust
  • Rental or lease agreement for the business premises

Step 4: Submit Tax-related Documents

The next step is to submit your tax-related documents.

You’ll need to submit the following documents:

  • Business name
  • PAN Card
  • TIN Card (Tax Identification Number/CST Number/Sales Tax Number) in the name of the business
  • TAN for Tax Deduction at Source in the  name of the business
  • Bank account number
  • Bank account name
  • Bank IFSC code

These documents can be uploaded in the “My Profile” section on the Flipkart Seller Hub.

Now that you know what documents you need to submit, let’s move on to the next step.

Step 5: Add Your Products on Flipkart

Adding products on Flipkart is a straightforward process.

Here’s how you can do it:

  • Log in to your seller account on the Flipkart Seller Hub.
  • Click on the “Listing” tab and select “Add New Listing.”
  • You can now upload products in bulk using a CSV file or manually one by one.
  • Once you’ve added the products, click on the “Check Inventory Health” button to check if there are any errors in your product listing.
  • Fix any errors, and click on the “Publish” button to make your products live on Flipkart.

And that’s it! Your products are now live on Flipkart.

Step 6: Manage Your Products Through the Flipkart Dashboard

The Flipkart Seller Hub has a dedicated “Inventory” tab that lets you manage your products.

Here, you can view the status of your listing, edit product information, set pricing, check order details, and more.

You can also use the “Reports” tab to generate sales reports, track your performance, and measure your growth.

That’s a great way to keep track of your progress and see how your products are performing on Flipkart.

Step 7: Get Shipping and Logistics Support From Ekart

Ekart is Flipkart’s logistics arm, and it offers shipping and logistics support to sellers.

It has a network of over 10,000 warehouses and 20,000 delivery points spread across India.

That ensures that your products are delivered to buyers quickly and efficiently.

The logistics or courier services also provide sellers with training, packaging support, and materials.

How the Shipping and Logistics Support Work

After receiving an order, the seller has to pack the products and keep them ready for the  Ekart courier.

The seller has to generate a waybill from the “Ekart Logistics” section on the Flipkart Seller Hub.

The courier will then pick up the products from the seller’s location and deliver them to the buyer.

Flipkart offers two shipping methods to sellers:

Standard Shipping: Under this method, Flipkart handles the stocking, shipping, and logistics.

The seller has to pack the products and hand them over to the courier.

Flipkart ships the products to the buyer and handles customer service in case of any issues.

The process takes 45 days to refund the seller in case of a return or cancellation.

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Flipkart Advantage/Assure: The seller will enjoy 24 hours shipping and delivery under this method. Also, instead of the 45 days, the delivery is backed by 30 days of refunds and returns.

Step 8: Promote Your Products on Flipkart

The best part about selling on Flipkart is the many features and options to help you promote your products.

That said, let’s look at a few ways to promote your products on Flipkart:

Product Listing Advertisements: You can use product listing ads to promote your products on Flipkart.

These ads are displayed on the product listings page and help attract more buyers to your products.

Registering as a Flipkart Advantage seller: As a Flipkart Advantage seller, you get the advantage of warehousing, delivering, packaging,  and customer service support from Flipkart.

Flipkart will even handle returns and replacements for you.

That will give you more time to focus on promoting your products and growing your business.

Joining Flipkart Spike Sales: Flipkart Spike Sales are special sales events where sellers can offer discounts on their products.

That’s a great way to attract more buyers and boost your sales. While this might negatively impact your margins in the short term, it can help you increase your sales and grow your business in the long term.

Running Facebook Ads and Google Ads: You can use Facebook Ads and Google Ads to promote your products on Flipkart.

You can target buyers interested in your products and target them with ads.

It’s a great way to reach more buyers and boost your sales.

Reviews and Ratings: Encourage your buyers to leave reviews and ratings for your products.

Positive reviews and ratings will help you attract more buyers and boost sales.

You also want to respond to negative reviews and ratings positively and helpfully.

That will show buyers that you care about their experience and are willing to help them out.

A Note on Flipkart’s Payment Policy

Flipkart has a stringent payment policy for sellers.

  • Flipkart deducts a small percentage of the total order value as a commission.
  • The remaining amount is then transferred to the seller’s bank account within 7 to 15 days.
  • However, if there are any cancellations or returns, the amount will be deducted from the seller’s account.
  • Flipkart also charges a fixed fee based on the order value slabs.

The payment cycle is as follows:

  • The first seven days are the “hold period.” That is when Flipkart holds onto the payments in case of cancellations or returns. 
  • Payments are released after the hold period ends. 
  • However, if there are any cancellations or returns, the amount will be deducted from the seller’s account. 
  • The payments are then transferred to the seller’s bank account within 7 to 15 days.

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