Things you need to keep in mind before listing your business on e-commerce websites:

1. Charges

There are generally 3 types of charges which e-commerce operators like Amazon, Flipkart and other e-commerce operator charge:

• Listing Commission: Whenever you list a product the e-commerce operator will charge you a listing commission based on the selling price of your product. This commission depends on the type of your product. It may range from 5-25%. There have been various new sites which don’t charge this type of commission like meeshow and udaan.

• Closing Fee: This is levied flat on the order placed. It is generally between the range of Rs 25-50.

• Delivery Charges: This is no surprise that you will need to bear the delivery charges of your product. It differs in price from local sale, intra state sale and national sales.

Besides this there are also some optional charges which depends on the discrete of the seller like:

• Advertisement Charges: If you need to promote your product on amazon you will need to bear the advertisement charges. Due to this there is a case ongoing in the High Court of Karnataka to read more about this please click on the following link:

• Pick and pack charges: As a seller it generally depends on you if you want to use this service or not. Bit on many websites like amazon and flipkart. If, you don’t opt for amazon delivery services you will be able to sell your products only within the limits of your own city.

• Return Policies:

The return policies of the e-commerce websites today are mostly favorable towards the buyers. The sellers have to bear the cost of returns if the buyer does not like the products or if the product hets damaged in the warehouse or in transit.

• Favorable to manufacturers

The cost associated with online e-commerces can only be borne and sustained by manufacturers who want to sell their products directly to the consumers. It is because of high mark-up costs that they will apply to their products and can still offer discounts to the customers.

•  Send products to the warehouse:

Many e-commerce companies have started their own warehouses where they can store the products of the sellers and give faster delivery services to the buyers. It is also to be noted that your inventory will get block during this process.

• Higher Profits:

It is really true that only sky is the limit for sellers on e-commerce websites. There are really many wholesalers and manufacturers who are reaping the benefits of these platforms. They are maximizing their sales by setting correct price ranges, handling their inventory properly.  

In a nutshell it can be said that the online business in India will expand in the future but sellers need to keep in mid the above following points and do proper costing and inventory holdings in order to make their businesses profitable.

Print