Flipkart sees 90% of its sellers return, boom in new sign-ups

Flipkart sees 90% of its sellers return, boom in new sign-ups
Photo Credit: Reuters
29 Jun, 2020

Walmart-owned ecommerce marketplace Flipkart on Saturday said that about 90% of its sellers have resumed business on the platform since April 2020.

Flipkart had suspended operations on a temporary basis on March 25 and switched to delivering essential supplies in select areas. The platform, along with its rival Amazon, began rebooting operations in early May. 

The Bengaluru-based startup also said it witnessed a 125% jump in new seller sign-ups on the platform, in comparison to its existing seller base, for the April-June 2020 period.

“The impact of the pandemic has urged businesses across the country to rethink their usual mode of operating and identify newer ways to function. Local micro, small and medium enterprises (MSMEs) across the nation have realised the true value of ecommerce that enables them to stay connected with millions of customers,” a statement added.

Uttar Pradesh, Maharashtra, West Bengal, Delhi and Tamil Nadu are the top states where local MSMEs have shown maximum interest in taking their businesses online, the statement added.

Flipkart said it has also been conducting regular workshops, in partnership with Federation of Indian Chambers of Commerce and Industry (FICCI), to help MSMEs accelerate business with ecommerce, familiarise them on digital for brand visibility and business growth.

Apart from partnering with local businesses, providing loans to sellers and building safe supply chains, the platform has also introduced a paid health insurance plan, specific for Covid-19. The insurance plan covers sellers along with their families and employees.

Additionally, during the first phase of the lockdown, Flipkart’s seller protection fund (SPF) enabled online sellers to claim a certain amount as compensation for unfair losses, the statement added.

Businesses on Flipkart had recently taken to social media to protest against an increase in the fixed as well as a shipping fee for sellers. A fixed fee is a sum paid by a seller to the ecommerce firm for each successful transaction. 

In May, global parent Walmart announced a drop in revenue as Flipkart eroded its international business for the financial quarter ended April 30, 2020. The company follows the February to January period as its financial year.