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Ecommerce in India is changing fast, and Flipkart has established itself at the forefront as one of India's top marketplace. Flipkart has made itself welcoming to newcomers — sellers can sign up and get their products listed in a matter of minutes, after which they can tap into Flipkart's gigantic customer base to make the entire nation their market.
This article covers an in-depth analysis of how Flipkart manages its sellers, and how sellers can improve their performance on Flipkart to qualify for the coveted gold tier.
With the exponential rise in the number of sellers on Flipkart, it became really hard for them to treat all sellers equally. Flipkart had to decide which seller's products would have maximum visibility, which sellers would need a dedicated account manager, which sellers needed advanced seller support, and so on.
This made them introduce the seller tier system in 2016, where sellers would be rewarded based on their performance. Flipkart has devised three tiers to split its pool of sellers - bronze, silver, and gold.
The introduction of the tier system was a win-win because sellers were struggling to create a unique identity for themselves amidst the millions of competitors. Since the tier system set clear distinctions in terms of the service and recognition, it became easier for them to incorporate a milestone-driven approach in their selling strategy.
Note: All sellers start out as bronze sellers, after which they can qualify for the silver and gold tier based on their performance.
Benefits get progressively better as you move from bronze to gold. Also, the coveted gold tier has some unique benefits such as being invited to exclusive Flipkart events and getting a dedicated account manager.
Flipkart measures the performance of a seller based on four inspection criteria standardised by them, these are - sales, average product ratings, service quality and regional utilisation.
One of the major differentiators between sellers for Flipkart is their sales performance. Flipkart measures the sales performance of a seller based on one of three criteria's — sales in units, sales in revenue, or growth index. Sellers need to accelerate their sales in order to qualify for the Silver and Gold tier.
Flipkart offers your customers the ability to rate your products based on their experience in terms of usability and service. These ratings are range from zero to five, with five being the highest ( best achievable rating).
The benchmarks standardised by Flipkart for the average ratings of your products are vertical benchmarks. This means that they vary based on the category of the products you're selling.
Sellers need to ensure their products and services meet the required customer expectations in order to receive positive feedback.
Flipkart expects high service quality standards from its sellers. To ensure this, they have implemented strict guidelines which sellers need to adhere to and penalties in place in case of any breaches. Flipkart measures the service quality of a seller based on two criteria's — RTD breaches and seller cancellation. Sellers need to be meticulous when selling on Flipkart with regular inventory updates and SLA-driven order processing.
An order placed on Flipkart could be local, zonal or national depending on the location of the customer.
Flipkart wants to offer speedy delivery of orders to their customers, this means delivering their orders on the same day or the next day. Delivering orders with such speed is only possible for local and zonal orders. This is why Flipkart wants to reward sellers with a high regional utilisation percentage who are helping them meet this objective.
To become a Gold seller, you need to meet the following performance criteria:
One of the most effective ways of increasing sales on Flipkart is a flash sale or a promotional event. You can promote the sale ahead of time; this will act as a catalyst, bringing you more sales and more revenue. To participate in such events, go the the 'growth' section in your seller dashboard. You will see promotions Flipkart is actively encouraging sellers to take part in. Choose the most suitable options in line with your sales strategy and get going!
Another proven strategy to increase the discoverability of your products on Flipkart is to run ad campaigns on Flipkart. Using paid advertisements, you can create highly-targeted and tailormade ads for customers who are most likely to purchase your merchandise. To use Flipkart ads, simply head to your seller dashboard on Flipkart and click on advertisements. Flipkart has an extensive rate card with different cost-per-click for different categories. You can select the relevant category, define your target audience and start advertising.
You can offer your customers with product combos which helps you boost your sales and average order value. Customers are lured into buying product kits because they're reasonable and they offer solutions to multiple pain-points.
Make sure you're offering enough products for your customers to choose from. Even if you have a limited range of products, you can let your customers choose between different product variants like colours and so on. This increases the likelihood of them making a purchase.
You need to see what your competitors are doing at all times, this helps you stay updated on customer shopping trends and pricing patterns. You will be able to identify products with high sell-through, analyse why customers love to buy them and tweak your sales strategy accordingly.
If you open Flipkart's seller panel, they have created a dedicated space to provide sellers with actionable insights on how to grow their sales. These insights can vary from stock recommendations, pricing suggestions to advertising recommendations and more. Based on these insights, sellers can modify their sales strategy to accelerate their sales.
If you display your products with pixelated or blurry images, customers may never know what exactly they are buying. This increases the chances of your products getting bad ratings. To prevent this, you can include high-resolution images of your products from all profiles.
If you're not using correct and informative product descriptions, customers may set the wrong expectations from your products. This can also lead to them rating your products poorly. To avoid any confusion, you should have content-rich product descriptions, including its features, materials used, weight, size, and more.
Particularly for clothing or footwear brands, the ratings stoop down due to incorrect size ordered by the customers. Moreover, there is a slight size variation from brand to brand. By providing an easy-to-read size chart, customers will order the right products which will help improve your product ratings.
Another reason for poor product ratings is when the product reaches your customer in a damaged or substandard condition. To avoid this, you need to make sure you use the right packaging materials. For example, fragile glassware should be bubble-wrapped and then sealed in a corrugated box.
With the help of your past order history, analyse the region where orders are maximum. It helps you plan your inventory distribution according to high sales zones. Flipkart has developed an extensive seller panel which can provide you with performance reports. You can analyse these reports to identify the most prominent zones to store your inventory. If you're just starting out, it might make sense to distribute your inventory to major metropolitan cities of the country — for example, Mumbai, Delhi, and more.
Look for the products having a high sell-through rate and distribute them to different fulfilment centres. If you are starting fresh and don't have sales data to identify top performers, then distribute inventory of your flagship products.
Based on your analysis, you can now distribute your inventory across the country.
Working with a tech-enabled 3PL like Eshopbox can help you on your journey to becoming a gold seller by:
Eshopbox SLA-driven and streamlined pick and pack allows you to pack every order and mark it as 'ready to dispatch' on-time, without fail.
By meticulously processing orders with the SLA in mind, sellers can avoid RTD breaches and seller cancellations.
One of the major contributors to SLA breaches is overselling. This happens when the seller is unable to source a customer's order due to lack of inventory. Eshopbox syncs your inventory across all channels every 5 mins, this allows you to relay accurate inventory levels to marketplaces and avoid overselling which can lead to seller cancellations.
By relaying accurate inventory levels, you only receive orders for inventory you have. No more seller cancellations.
See how inventory snapshot works
Products make their way into your customers’ shopping cart easily when they are bundled. With Eshopbox, you can use powerful merchandising techniques like kitting to combine multiple products together. This helps you maximise product exposure, offer exciting deals and target multiple needs through a single purchase.
It helps you boost revenue by increasing the average order value of a purchase.
Eshopbox has a powerful network of fulfilment centres spread across the nation. You can split your inventory with Eshopbox based on your most demanding zones and improve your regional utilisation.
It helps you improve your regional utilisation by storing items closer to your customers in multiple locations.
Eshopbox conducts quality checks at the time of receiving inventory and order processing to make sure your customers get the correct products in their hands. If you have unique products which need to be specially examined, Eshopbox allows you to customise the inspection criteria as per your specific needs.
It helps you improve your average product ratings by delivering the right products.
To manage flash sales effectively, Eshopbox combines its extensive fulfilment infrastructure with organised workflows to handle the exponential surges in order volumes. All you need to do is inform Eshopbox about the time and duration of the flash sale and the Eshopbox will take care of the rest — from increasing your daily pick capacity to allocating dedicated manpower, everything's covered.
It helps you accelerate your sales and boost additional revenue.
Check out our quintessential guide to running a flash sale
What if we told you that there is a way to become a gold seller instantly, without any of this hassle? Eshopbox already qualifies as a gold seller on Flipkart, all you need to do is make us your seller on record to enjoy the benefits of being a Flipkart Gold seller.
It helps you qualify as a Flipkart Gold seller directly, without any lengthy process.
See how seller on record works
Eshobox helped Spykar and many more become a Gold sellers on Flipkart, for which they received a certificate of recognition from Flipkart.
Now that you've understood the journey to become a Gold seller on Flipkart, you can start working towards it. It will give you immense opportunities to grow your brand and reap the exclusive benefits of Flipkart's most rewarding bracket. Happy selling!