How to choose product on indian market place website and compare to price and product quality
One thing you must know is that you don’t just buy anything and everything from any online market, you have to know what it is that you really want to buy and know the best place to get it. In order to know that you’ll have to have some information about all the online markets in India and in this article you will be getting the most important piece of information that you will need to know (Pricing, Shipping, Packaging, Payout Period and Marketplace Size) so that you could enjoy your online transaction. Below is a table that briefly analyzes the details mentioned?
Reviews of Online Marketplace
Marketplace Amazon eBay Shop Clues Snap deal Flipchart
Pricing Subscription Fee INR 499/ Month INR 499/ Month (For Basic Store) Free Free Free
Listing Fee INR 10/ Sale Free for first 100 products Free Free Free
Payment Gateway Fee None 4.5% Paisa Pay Fee + 12.36% ST None None None
Commission (Depends on Product Category) 5%-15% 1%-7% 4%-20% 4%-20% 4%-20%
Shipping Self-Shipping ✘ ✘ ✘
Use Fulfilment by Amazon (FBA) Power ship Use e-Kart
Cost of Shipping Rs 40 to Rs 45/ 500 gms + 1% of Item Value Rs. 40 – 49/ 500 gms INR 45/ 500 gms for SCVB INR 40/ 500 gms (approx.) INR 35/ 500 gms (approx.)
Packaging Packaging Provided? ✘ ✘ ✘
Only for FBA; Handled by Amazon Only for Power Ship customers Provided for SVB
Cost of Packaging NA NA INR 3 – 9/ Order INR 3/ Order NA
Pay-out Period Shipment Confirmation from customer + 7 Days On Shipment Confirmation from customer Every Wednesday for all orders Completed before Monday Dispatch Date + 3 Weeks Tier-1 Seller: Dispatch Date + 7 business days
Size of the Marketplace 10,000 Sellers
10 Million Unique Visitors / Month
2 Crore Products Listed 40,000 Sellers
2.5 Million Active Users
1.1 Million Product Listings 100,000 Sellers
50 Million Visitors / Year
1.6 Crore Products Listed 60,000 Sellers
4 Crore Registered Users
10 Million+ Products Listed 3,000 Sellers
$1 Billion Sales 2012-13
Since Amazon started the online buying and selling in 2013 they have gradually become a house hold name and are arguable one of the best online markets. Most times what you would want to consider first is the price tags on the services provide by the marketer before deciding to employ those services.
Here is a summary of the pricing system:
Price in selling products.
Monthly Subscription Fee: Rs 499.
Referral Fee/Commission: Ranges between 5% and 15% per sale, depending on the product category.
Closing Fee: Rs 10 charged on every sale that that is made.
Shipping: whoever you are buying from could decide to either ship the product to you himself, or decide to use the Fulfillment by Amazon (FBA) to ship products. But you signing up for FBA will force him to do the latter. Shipping charge is placed on the seller which may affect the prices of the goods you want to purchase. Some of these charges are:
Shipping: Rs 40 to Rs 45 per 500 grams
Packaging: Rs 10 to Rs 25 per unit
Storage Space: Rs 14.2 per cubic feet per month
Delivery Service Fee: 1% of item value
Approximately 10,000 traders are actively trading in the amazon market place every 10 months in India and are visited by about 10 million customers on their web site on a monthly basis. It offers more than 2 Crore products, in addition to 12 million books and 2 million e-books. Amazon will only package your delivery when you have signed up for FBA and payments are made into the accounts of sellers 7 days after shipping has been confirmed which means the sellers get paid on a weekly bases.
EBay can be referred to as the pioneers of internet purchasing, they started out in 1995 and a decade’s time they were already in the Indian market. The most significant difference between EBay and other online markets is that you can either list a fixed price for a product or place the product on auction. You can decide to select a minimum bid amount and also an end date for the auction, after which the highest bidder gets to purchase the product at the end of the auction.
Pricing: The pricing structure on eBay is not as rigid as that Amazon and many others, it is determined by many factors and they are:
Subscription Fee:On eBay, you are granted benefits based your choice plan. You can choose to be a Non Shop Subscriber or a Subscriber (3 different plans). Here are the rates for the different plans available on eBay.
Basic Store:Rs 499 per month
Featured Store:Rs 1999 per month
Premium Store:Rs 3999 per month
Insertion Fee:The first 100 products are free of the listing fees for every seller after which, the rates in the tables below charged are as follows :
The rates are shown for the different listing types. The first category is for the 1, 3, 5 or 7 days of listing. The second is for the 10 or 30 day listing option.
Paisa Pay Fee:5% will be deducted for every sale made through eBay as the Paisa Pay fees and another additional 12.36% Service Tax will be taken from the profit.
Final Value Fee: For every product that you sell, you will also be charged the Final Value Fees. It is a percentage of the total sale value. The final value ranges from 1% to 7%, based on the type of product you are selling.
If you are looking for other cheaper online markets you could try out the 7 year old Indian company, Flipkart, they are relatively cheap and have no charges placed for listing, or any special subscription and take profit ranging from 4-20% of the returns of every deal with three thousand sellers on board. Snapdeal is also relatively cheap and basically operates the same way with Flipkart except forIs in terms of the Payout period where all new sellers (known as tier 2 sellers) once a month after they’ve completed 30 transactions however, for this to happen, a settlement defect rate of less than 5% has to be maintained. If it shoots higher than 5%, the Tier-1 seller status is downgraded again to Tier-2. There are above 10 million visits and more than 60 thousand traders selling on Snap deal. Shopclues is also pretty reliable online market.