Hello ! Guys, I am a seller on different e-commerce platforms like Flipkart, Snapdeal, and Amazon.
While the policy of Amazon.com and Amazon.in works perfectly for me.
The policy of other e-commerce company neither works for me nor for the other sellers.
I have faced many difficulties while dealing with these famous e-commerce portals and I conclude that it is a loss-making policy from the seller’s point of view.
The monopoly of Famous E-commerce Portals:
If you are a retailer then it is very difficult to survive here.
Their policy is not suitable for branded products.
For example, if you sell a Hindustan Unilever product like a particular product like the LakmeRadiancee cream priced whose MRP is Rs 285/- (the price at which the retailer buys from a distributor).
The wholesale price of the same product will be somewhere between Rs 245/- to Rs.250/- approximately. Now, if the seller plans to sell this product on Flipkart then the seller is at a loss because Flipkart provides free shipping facility on local order which has to be borne by the buyer.
Shipping Price is Fixed By E-Commerce Company
The shipping price depends on the distance or location where the product has to be shipped. The shipping is measured somewhere between 30, 50 and 80 respectively.
My question to these famous e-commerce portals is that if they claim to provide free shipping with selling price fixed at Rs 285/- per piece plus commission charges then it is the seller who has to bear the commission charges Rs 35/- to Rs 45/-per piece which adds on to his cost price.
In addition to this, the seller also has to bear the packaging which is an expense of the seller and not of these famous e-commerce portals.
If the seller increases the price of the product the buyer will definitely ask for the reason of the difference between the MRP and the increased selling price.
This will be a threat or danger to the seller’s reputation as well as creditability.
I fail to understand the basis on which these e-commerce portals decide the MRP or the shipment value of the product.
They don’t even possess a security policy to protect the merchant in the selling process.
By keeping the shipping free damages the financial situation of the vendor as selling on this highly established e-commerce portal.
Sellers cannot disclose the real reason for the raised price of these goods. They fail to understand that the seller also buys from other retailers to sell it further for profit.
What is the Seller Future in online Portal? :-
E- Commerce portals always declare themselves as a loss making organization so they why don’t they pull their shutter down once and for all.
If they really want us to sustain they should let sellers decide MRP of the product.
They fail to understand that there are profits only in the products where the seller can decide the MRP of the product as he is able to add the shipping as well as packing cost in the price.
It has also noticed that the branded products are being sold below the actual MRP along with free shipment facility it makes me wonder how can this be possible?
This is not at all a favorable scenario for small time seller who wants to sell these goods for profit.
This has led to a major dispute between the sellers themselves as there is hardly any profit left for the common retailer.
This kind of selling is beneficial for the established e-commerce portals that won’t be affected by my unwillingness to sell on their platform as they have plenty of sellers already on their platform.
I just wish to state that if they want small time seller to survive on their platform the price of the branded products should be priced equal to the MRP frame.
The seller should have the liberty to decide the shipment cost for the product.
If the shipment is included in the MRP there are chances of earning profits are the basis and an integral part of survival for the small time seller in the e-commerce industry.