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Flipkart to cut down on its commission from sellers

Published
today Jun 12, 2019
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Walmart-owned e-commerce platform Flipkart has cut down its commissions from sellers as it looks to onboard new sellers to increase its seller base in the country.
 

Flipkart to cut down its commission from sellers - Flipkart


The move is expected to boost sales of the existing sellers and also increase the e-tailer’s seller base thereby further strengthening its pan-India network.
 
The changes in the commissions will be made on a quarterly basis and the company is expected to tweak its commission structure for sellers around September, Financial Express reported, citing anonymous sources.

“This is going to be a quarterly exercise. As Flipkart enters the festive season in coming months there could be chances of further reduction in the commission rates to get maximum bang for the buck when it comes to seller commission and empower them to do maximum business,” the source said.
 
“The commission charged by Flipkart, which has over 1 lakh sellers, ranges between 8-10 per cent depending on the product and “in some categories it is around 12 per cent. Revised rates would benefit small sellers who are selling goods of lesser value. They should not be charged the same commission that a seller selling goods worth Rs 1000 or above is charged since the margin is less in the former,” another source said.
 
Flipkart had recently also increased its ratio of 'Made in India' products across multiple categories for its own private labels, including textiles.

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