Dreaming of starting your multi-vendor eCommerce site like Flipkart, but do not know how to start instantly? Let’s first see what Flipkart is and how does it work!
Today, Flipkart is India’s largest online eCommerce website. Flipkart was started in 2007 and recently it also acquired an online fashion eCommerce Store Myntra for $300 Million. The annual revenue of Flipkart is 5000 crore. In the world, among the top 100 websites, Flipkart is ranked 82nd by Alexa, and 7th position as in India.
In a scientific view, Flipkart is known for an e-commerce marketplace, B2C shopping Portal for Indian customers ordering the goods to deliver in India.
Here is a comprehensive analysis of the eCommerce Giant Flipkart’s Business Model for the aspiring entrepreneurs.
Marketplace > List vendors who sell desired products > Get shoppers browsing through the products > Make enticing deals & discounts > Customer purchase desired products > Vendor/Flipkart ships the product to customer > Product accepted & Not returned back > Vendor gets the agreed price for the product sold minus the commission charged by Flipkart for making the sale.
Therefore, the primary source of income Model of Flipkart is “X% commission on the total selling value given to the vendor”.
The sale can happen through many channels as given below and for all the trading is achieved by Flipkart for the same supplier – Flipkart will charge a percentage (%) cut on the whole total sale amount which does not include taxes.
1. Direct through Website
2. Direct through Web App
3. Direct through Mobile App (Android, iOS, etc.)
4. Direct through Telesales (Customer calls and Place order – rarely happens now)
5. Through Affiliate Networks (Coupon Websites, Review Websites, and Bloggers)
6. Social Buy
The percentage of commission differs on the kind of product and type kind of selling which Flipkart makes.
The giant eCommerce platform creates revenue not only by the sale of products but also from different income channels. Here are some of them:
Web portal:
The basic source of income of Flipkart is collecting a commission for the services from the vendors who use its platform.
Listing and convenience fee:
The other way of getting revenue to the company are inclusion and convenience fee. The listing fee is collected from the vendors, and the convenience fee is collected from the purchasers for quicker delivery. Convenience fee adds wrapping charges for the gifts; Billings includes to the whole income of the company Flipkart.
Logistics:
For delivering the goods of the vendors; an amount is charged from them. It supplies services to its vendors like other delivery companies. Charging services for delivery differ from location to location covering the distance.
Digital media:
It also sells ads and different products such as co-branding and co-advertising to the vendors or brands via digital media. The ads are divided into three classes:
In addition to the above revenue model, Flipkart also gets funding from several other sources to upgrade their business. Flipkart companies include recent acquisition of other Indian eCommerce companies like Myntra, Jabong, eBay.in which are now termed as Flipkart Group!
Since it is created chiefly on PHP, this website provides us to experience as contented purchasing as in a real store. At present, the engineers of this site’s program clear that the site is now high in its responsiveness and very low at showing the mistakes of technology which assists the online store to keep up the selling.
The complete rules which are seen above provides the reason why Flipkart is one of the best selling eCommerce brands in our country!
The actions of your idea should define your success; not just your idea alone.
On understanding the working functionalities, your next question will be how to build a website like Flipkart! All you have to focus on is a feature-rich, scalable, open-source platform which provides you with changeable and powerful features to customize and manage both the front-end and back-end in an efficient manner. We can use leading technologies using WordPress or Magento eCommerce platform to build it as they have plenty of features that makes it possible for to build a flipkart clone.
EWDC lets you run a business with the latest technology trends, without significant investments and time-consuming deployments.
Fear is a natural thing- when you order a dedicated online store and stand the invested amount. So you might have asked yourself good many of times: “How much do I have to spend?, How much does it cost to build a website like flipkart?” If the amount with several zeros often occur, from the availability of costs details on internet forums doesn’t assist with the final decision.
Meantime, picking a ready-made online store like EWDC doesn’t incur expenses on licenses purchase, equipment, installations or necessary adjustments – the starting costs are pretty small for startup, and of all, it is the one-time price!
Sure that, the change of the storefront does not need the employment of any people as you can do it by yourself. Even the smallest graphic details can be managed individually in the admin panel of a store for no difference – be it a banner, a tiny icon or a logo!
EWDC is built using world’s leading platform, Magento, which helps you to manage your store without prior technical knowledge. And, the most important is, you’ll pay less money for the basic version of the online store than on any other eCommerce marketplace platforms in India. With EWDC you get complete transparency and no hidden prices compared to other markets.
At Amazon, you have to pay a subscription fee (Rs. 499 /monthly), commission (5-15%) and listing fee (Rs. 10/sale). And at Flipkart, you have to manage commission (from 4 to 20% which depends upon product category).
But, at EWDC, there is no need of having monthly commitments or any other excess fees. And you get 100+ pre-loaded features to get your store up and running effortlessly!
Multi-Vendor shopping cart supplies the multi-seller functionality letting various vendors to sell and manage their products in a common storefront.
In case, if you are in hurry to create your Flipkart-like website or you want to know how to build a multi vendor eCommerce marketplace website, then get in touch with us here or call us at +91 9884203777 for a quick inquiry! Visit www.ewdc.in and live chat with our experts who will answer all of your queries
If you want to create a website for your store independently, then OrderZ is one of the best online store builder platforms to create one. OrderZ helps you create an online store for your physical store in just a minute or so. The catch here is, there are no coding skills or technical knowledge required at all to create an online store through OrderZ. Visit www.orderz.in to know more.
Get connected to us to develop a flipkart-like marketplace website using either EWDC’s multi-vendor eCommerce platform or OrderZ’s online store builder platform!
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Thanks for sharing this kind of informative blog post. I went through your blog and it’s totally awesome.Especially the flipkart business model is very informative. If possible please include Info graphics for your blog.
You have brought up a really wonderful points, Mainly the digital media about flipkart is very innovative.
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