MUMBAI: In what may pave way for better deals for consumers on Flipkart going ahead, the Walmart owned company on Friday announced a new rate card policy for sellers which aims to reduce their operating costs and provide them with incentives. Much of the benefits can be availed by sellers selling popular categories like lifestyle, books and general merchandise, home, furnishings, electronics and accessories.
“With the implementation of the new rate card, Flipkart aims to maintain its position as an affordable shopping destination for customers. The revisions are designed to optimise seller costs while ensuring competitive pricing and value for consumers,” the company said in a blog. If sellers get cost advantage, they are likely to pass on benefits to consumers leading to reduced prices.
The new rate card will be effective from May 18. As part of the incentives, Flipkart will now also allow sellers the option of express air deliveries, thereby expediting their shipments to consumers. “While the exact financial impact of the rate card revisions on Flipkart’s revenue and profitability may vary, the overall objective is to drive sustainable growth for both sellers and the platform,” the company said.
Flipkart and Amazon drive bulk of India’s e-commerce transactions; analysts at JM Financial pegs Flipkart’s e-commerce market share at 47% followed by Amazon’s at 42%. Meesho holds the rest.
“This rate card redesign is part of Flipkart’s broader initiative to streamline operations and offer robust support to our vast network of sellers across India. These changes will improve the ease of doing business and amplify potential market reach and consumer engagement,” said Rakesh Krishnan, vice-president and head of marketplace at Flipkart.
