Flipkart Seller Registration
Contents
Flipkart, Amazon, Snapdeal, Shopclues, Myntra, Jabong are all a means to an end, your favorite goodies hand delivered to you at the comfort of your homes. The advent of e-Commerce has made life much simpler for shoppers to get their desired goods. Flipkart, one of the big players in the e-commerce landscape of India, hit close to $18 billion(~ ₹1300 Crores) in revenue in 2017-18. In this article, we will discuss how you can be a Flipkart seller.
As of this day, Flipkart makes close to 5 million shipments every month and every day at least 1 crore people visit their website/open the app. These e-commerce portal have made many incentives, schemes, special offers and discounts to help encourage people using their portals. Incentives like “Big Billion Days “, OneDay Delivery etc. have made Flipkart a lot of revenue. In the first hour of the “Flipkart Sale” nearly 1 million smartphones were sold that is ₹1000 Crores in one hour. This presents businessmen and traders with a great opportunity to sell their products online. Let’s see the process of becoming a Flipkart Seller.
The process for becoming a seller on Flipkart is very easy and can be done in a few simple steps. Any individual trader/business can sign up as a seller on the e-commerce website by specifying information about the type of the operation they are running i.e. the type of association.
If the seller decides to sell in his own name and legal standings, the business will automatically be professed to be a sole proprietorship business.
In case of Individual or a Proprietor
There is no limited liability and no protection is provided to the promoter. Besides, it is not easily transferable and cannot have investors and partners. Following are the documents for sole proprietor or individual:
In case of LLP or a Partnership
There is a limited liability in case of LLP or Partnership rather it provides you protection against unlimited liability. Besides, it is easily transferable and is considered to be a separate legal entity. Following are the documents need to be submitted:
In case of Private Limited Company
This kind of companies are the most preferable form for seller registration because it has the ability to take on investors and scale up the operations. Following are the documents for Private Limited Company that need to be submitted:
In case of Trust or a Foundation
You can also register a Trust or a Foundation yourself. Documents required in case of this is as same as LLP or Private Limited Company in order to prove its Legal ID and Address Proof.
Following are the Tax registration and Bank account in the name of the business or entity is required when the Flipkart seller is registered as a suitable business entity for the proposed business:
As soon as you provided the above documents and information about your business, you will be registered. Then you can smoothly commence selling of its products on Flipkart. By completing the Flipkart seller registration account, the business is officially allowed to set up the storefront and list products to sell on Flipkart to start sales.
Following are the advantages of being a Flipkart seller:
At the current regime of technology and advancement, it is not a challenging task to reach out to around 10 crores of registered customers throughout the country. It is still helping to enhance and advance the business.
No doubt the process of linking bank accounts with the Flipkart seller account has made the mode of payments for the product bought by the customers is quicker and easily transferred to the bank account. It is now easy to transact with the customers relating to purchases and returns.
The liability of the seller is only confined to receiving an order and prepare an order. Rest, its the duty of Flipkart to provide dedicated pick-up service at seller’s end to pack and dispatch the product to the customer.
Various e-commerce companies have rolled out different initiatives and reward programmes for its seller partners which include reduced commissions and other benefits.
Let us assume that selling price of a product is Rs. 1000 (decided by the seller), Given below is the bifurcation of the fees:
| S.No | Particulars | Amount (Rs.) |
|---|---|---|
| 1. | Selling Price | 1000 |
| 2. | Flipkart Commission | 50 (5% – assumed) |
| 3. | Shipping Fee | 30 |
| 4. | Fixed Closing Fee (fixed by Flipkart) | 10 |
| 5. | Total Marketplace Fee (2+3+4) | 90 |
| 6. | GST (rate can varies product to product) | 50 |
| 7. | Total Deductions (2+3+4+5)= 6 | 140 |
| 8. | Settlement Value (Credit to seller) (1-6) | 860 |
Earlier, the seller used to give VAT/CST to the government. But with the introduction of GST, operators like Flipkart who is booming e-commerce in India started collecting the amount at the rate of 1% that contain 0.5% as CGST + 0.5% as SGST of the net value of taxable supplies. So, in the end, the amount collected is called Tax collected at source (TCS).
There is a slight change now that TCS will be applied on one month’s collection which will be paid to the Government. It will be clearly seen in the GSTR-2 of the registered supplier on behalf of whom the collection is done.
All you (seller) need to do is to submit an online statement, which has the details of all the products sold through the portal and the TCS in Form GSTR-8. So, the details furnished by the operator in his form will be matched with that of the respective seller in his form.
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